As we step into 2017, the equipment finance industry is experiencing a surge in confidence, bringing forth new challenges and exciting opportunities for funding sources. With a record-breaking Equipment Leasing and Finance Foundation’s Monthly Confidence Index, optimism is at an all-time high. Experts from leading funding organizations, Financial Pacific Leasing, Ascentium Capital, and MB Financial Bank, discuss the landscape of the industry, the impact of the new presidential administration, credit quality, liquidity, and strategies to remain competitive.

A Confident Start to 2017
The equipment finance industry is off to a confident start in 2017, with the Equipment Leasing and Finance Foundation’s Monthly Confidence Index reaching an all-time high of 73.4. Although the index slightly retreated to 72.2 in February, it remains substantially higher compared to the previous year. This surge in optimism has led to an increase in new business volume, setting a positive tone for the industry’s growth.

Funding Sources and Opportunities
Funding sources in the equipment finance industry are embracing the newfound confidence. Brian Griffin, the president of Lease Banking for MB Financial Bank, remains optimistic, expecting transaction volumes to pick up throughout the year. Ascentium Capital, now backed by private equity firm Warburg Pincus, sees growth fueled by existing third-party originators. Financial Pacific Leasing, an Umpqua Bank company, is experiencing a rise in business and plans for continued growth in its core business.

Ensuring Liquidity and Credit Quality
Despite concerns about a liquidity crunch, the funding sources are well-positioned, with no immediate signs of liquidity issues. Planning and diversification remain essential to safeguard against unforeseen challenges. On the credit side, panelists anticipate minor fluctuations in delinquencies, with Griffin and Menzel expecting a decrease in 2017.

Remaining Competitive
In a changing landscape, staying competitive is crucial for funding sources. Key strategies include understanding customer needs, adding real value, and fostering strong funding relationships. Differentiation goes beyond offering the lowest price; reliable responsiveness and flexibility play a significant role. Fisher emphasizes the importance of maintaining strong credit profiles and delivering superior customer service.

The Impact of the New Administration
The new presidential administration promises a pro-small business sentiment and potential regulatory rollbacks. The panelists believe that decreased regulations may lead to increased efficiency in the industry. However, Griffin and Menzel caution that certain regulations are likely here to stay and recommend conducting business in a fair and equitable manner.

Challenges Ahead
The industry is likely to face challenges with the anticipated rise in interest rates. Funding sources will need to adapt to this new element by sharpening their focus on pricing. Additionally, the industry needs to address a more knowledgeable consumer base that demands transparency and tailored solutions.

As confidence in the equipment finance industry reaches unprecedented levels, funding sources must capitalize on the opportunities while navigating the challenges. Remaining competitive, maintaining liquidity, and focusing on credit quality will be critical. With the new presidential administration signaling a pro-business approach, regulatory changes and increased efficiency could reshape the industry’s landscape. Adapting to new market dynamics and evolving customer needs will be crucial to thriving in this optimistic and promising environment.

In an ever-evolving world, the equipment finance industry faces the challenges of adapting to rapid changes, making it crucial for companies to adopt a forward-thinking approach. According to a recent report from the Equipment Leasing & Finance Foundation (ELFF), utilizing “day-after-tomorrow” thinking is essential to thrive in this dynamic landscape. The report, based on insights from 22 industry executives who convened in Washington, D.C., delves into the crucial factors that equipment leasing and finance firms must consider as they chart their path to future growth.

Understanding the Industry’s Evolution

The 2017 Industry Future Council (IFC) report offers valuable insights into key areas that are currently impacting the equipment finance sector. By analyzing managed solutions, risk transference, regulatory restrictions, capital trends, and the evolution of financial technology (fintech), the report sheds light on the transformative trends that demand attention.

Managed Solutions for Future Growth

The first area of focus in the IFC report revolves around managed solutions. As the industry grows increasingly complex, companies should consider innovative and comprehensive solutions to cater to the evolving needs of their clients. Providing end-to-end services, rather than just simple financing options, can elevate customer satisfaction and loyalty, thereby strengthening the business’s position in the market.

Mitigating Risk through Forward-Thinking Strategies

Risk transference is a critical aspect that equipment finance companies need to address in their “day-after-tomorrow” thinking. By actively identifying potential risks and developing strategies to mitigate them, businesses can safeguard themselves against uncertain market conditions and maintain stability during times of economic turbulence.

Navigating Regulatory Restrictions

Regulatory changes can significantly impact the equipment finance industry. Being aware of evolving regulations and ensuring compliance will be essential for businesses to remain competitive and avoid potential legal repercussions. Staying informed and collaborating with regulatory experts can help navigate the changing landscape more effectively.

Understanding Capital Trends

Capital trends have a profound effect on the industry’s growth and expansion. Monitoring and analyzing these trends will allow companies to make informed decisions about capital allocation, thereby optimizing their resources and maximizing returns on investments.

Harnessing the Power of Fintech

The IFC report recognizes fintech as a transformative force that continues to shape the equipment finance industry. Embracing technological innovations and integrating them into existing processes can streamline operations, enhance customer experiences, and open up new revenue streams for companies.

Embracing Exponential Technologies

The report delves into the characteristics of exponential technologies and identifies those with direct or potential applications in the commercial finance sector. Embracing these technologies can significantly enhance operational efficiency and facilitate greater connectivity with clients, driving overall growth.

Applications of Exponential Technologies

1. Artificial Intelligence (AI): AI-powered algorithms can revolutionize credit risk assessment, allowing companies to make faster and more accurate lending decisions. Moreover, AI chatbots can enhance customer support, providing instant assistance to clients and improving overall service levels.
2. Internet of Things (IoT): IoT devices can enable real-time asset monitoring, leading to predictive maintenance and cost-saving opportunities. By offering value-added services, equipment finance companies can enhance client relationships and create additional revenue streams.
3. Blockchain Technology: Blockchain’s immutable and transparent nature can enhance the security and efficiency of financial transactions. Implementing blockchain in lease agreements and payment processes can simplify operations while reducing fraud risks.

In the rapidly changing landscape of the equipment finance industry, embracing “day-after-tomorrow” thinking is essential for companies striving to succeed. The insights from the 2017 IFC report highlight the importance of managed solutions, risk mitigation strategies, regulatory compliance, capital trend analysis, and the integration of exponential technologies.

By adopting these forward-thinking approaches and staying ahead of industry developments, equipment finance companies can position themselves as leaders in the market, delivering enhanced value to clients, and paving the way for future growth and success. Co-sponsored by PayNet and IDS, the IFC report serves as a valuable resource and planning tool for industry executives seeking to navigate the challenges and opportunities of tomorrow.

The Equipment Leasing and Finance Association (ELFA) released its latest Monthly Leasing and Finance Index (MLFI-25) report, showcasing economic activity within the equipment finance sector. The report reveals that February’s new business volume was $5.9 billion, representing a 3% year-over-year decline compared to February 2016. While this dip may raise concerns for some stakeholders, it is important to assess the overall economic landscape and understand the contributing factors behind these figures. In this blog post, we’ll delve deeper into the data, examine the trends, and explore the potential implications for the equipment leasing and finance industry.

Understanding the ELFA Monthly Leasing and Finance Index (MLFI-25):

The MLFI-25 serves as a key financial indicator within the equipment leasing and finance industry. Compiled from data provided by 25 companies representing a diverse cross-section of the sector, it offers valuable insights into the overall health and trends of the market. By analyzing new business volumes, credit quality, and other metrics, stakeholders can gain a better understanding of the industry’s current state and its potential future trajectory.

February’s New Business Volume Analysis:

According to the MLFI-25 report, February’s new business volume totaled $5.9 billion, marking a 3% decrease from the same period in the previous year. Additionally, the volume saw a month-to-month decline of 5% compared to January’s figure of $6.2 billion. While this decline may seem concerning, it is crucial to consider the broader economic context that could be influencing these results.

Economic Factors Influencing the Equipment Leasing and Finance Industry:

Several economic factors can influence the equipment leasing and finance industry’s performance. One of the primary indicators is consumer and business confidence. When consumers and businesses are optimistic about the future, they are more likely to invest in new equipment and technology. Conversely, uncertainty or economic downturns may lead to decreased demand for equipment leasing and financing services.

Moreover, interest rates play a crucial role in shaping the industry’s dynamics. The Federal Reserve’s decision to raise its short-term interest rate target in March could have implications for the equipment finance sector. Higher interest rates might lead to increased borrowing costs for businesses, potentially impacting their equipment acquisition decisions.

Credit Quality and Approvals:

The report also sheds light on credit quality and approval rates within the industry. Receivables over 30 days decreased to 1.50% from the previous month’s 1.70% but showed a slight increase from 1.40% compared to the same period in 2016. This mixed credit quality indicates that businesses are managing their financial obligations reasonably well, despite some challenges.

Credit approvals, on the other hand, declined slightly to 74.8% in February from January’s figure of 75.4%. While this might indicate a more cautious approach by lenders, it’s crucial to remember that a credit approval rate above 70% is generally considered healthy for the industry.

Employment Trends in the Equipment Finance Sector:

Total headcount for equipment finance companies experienced a significant increase of 18.6% year over year. This spike is primarily attributed to continued acquisition activity at an MLFI reporting company. The growth in employment indicates a positive outlook for the industry, as companies are expanding their operations and increasing their workforce to meet growing demand.

Confidence in the Equipment Leasing and Finance Sector:

The Equipment Leasing & Finance Foundation’s Monthly Confidence Index for March stood at 71.1, slightly down from February’s index of 72.2 but still among the highest levels of the last two years. This confidence level indicates that industry professionals remain positive about the sector’s future prospects, despite the challenges faced in the past year.

February’s MLFI-25 report reflects a moderate decline in new business volume within the equipment leasing and finance industry. While this may raise some concerns, it’s essential to consider the broader economic context, including consumer and business confidence, interest rates, and overall market conditions. With credit quality holding steady and a positive outlook from industry professionals, there are reasons to be cautiously optimistic about the sector’s growth in the coming months. As the industry adapts to changing economic conditions, stakeholders must stay vigilant and continue monitoring trends to make informed decisions in this dynamic market.

The Equipment Leasing and Finance Association (ELFA) conducted a survey to identify the hottest equipment sectors. Based on responses from asset managers and consultants, the study revealed valuable insights into industry perceptions of 15 equipment markets. The results showed a mix of optimism and concern among equipment managers and leasing companies. While some sectors exhibited positive outlooks, others faced potential threats, such as a slowing economy, oversupply, over-regulation, and economic instability.

One sector that stood out for the fourth consecutive year was construction equipment, followed closely by medical, machine tools, high-tech/computer, plastics, and trucks/trailers. We’ll explore the reasons behind their rankings and analyze their potential growth in the secondary market.

Construction Equipment:
Construction equipment emerged as the undisputed leader in the survey for the fourth consecutive year. The sector’s positive outlook can be attributed to the improving health of the economy and low interest rates. With proposed national infrastructure projects on the horizon, construction equipment sales are expected to remain robust.

However, the secondary market for used construction equipment faced challenges due to sales in the primary market, weak global trade, and a strong dollar discouraging exports. Despite this, the construction industry remains optimistic about growth prospects, buoyed by the potential infrastructure investments.

Medical Equipment:
The medical equipment sector secured the second spot in the ELFA survey, reflecting a better understanding of the Affordable Care Act’s impact on hospitals and clinics. The potential for an ACA overhaul also influenced the industry’s rankings.

A significant factor driving the preference for leased medical equipment is the increasing healthcare needs of the baby boomer generation. This demographic shift has bolstered the demand for medical equipment leasing. However, potential Deductible Reimbursement Account (DRA) reimbursement cuts and industry-specific rules pose challenges to the new equipment market.

Nevertheless, the medical equipment secondary market is robust, and the refurbished equipment segment is projected to witness substantial growth in the coming years.

High-Tech/Computers:
The high-tech/computers sector secured the fourth position despite operating on narrow margins. The industry benefits from a sizable secondary market, compensating for declining global computer sales.

The shift in consumer preferences towards phablets and wearables impacted primary market PC sales. However, this change opens up positive opportunities for the secondary market.

Plastics Equipment:
Tying for fifth place, the plastics equipment sector experienced a remarkable turnaround across all categories. The automotive industry’s demand for high-capacity IMMs and smaller capacity plastic equipment used by auto parts suppliers contributed significantly to this growth.

Sales of new injection molding machines have risen steadily over the past seven years, while used plastic injection molding machines’ prices have surged by 20% to 50% during the same period.

However, the PET bottling segment faced declines in used blow molding equipment prices due to technological advancements and industry consolidation.

Trucks/Trailers:
The trucks/trailers sector also tied for fifth place, with a positive outlook driven by low fuel prices and interest rates. While new truck sales dipped, used truck and trailer sales remained steady.

Competition from the rail industry played a role in the decline of new truck sales. Nevertheless, new trailer shipments set a record in 2006, indicating the sector’s strength.

The ELFA survey offered valuable insights into the hottest equipment sectors for 2017. Construction equipment continued its reign at the top, supported by a flourishing economy and potential infrastructure projects. The medical equipment sector held the second spot, driven by the aging baby boomer population’s healthcare needs.

Machine tools ranked third, benefiting from strong domestic automotive and oil exploration industries. High-tech/computers and plastics equipment followed closely, each offering unique opportunities and challenges in their respective markets. The trucks/trailers sector, supported by low fuel prices and interest rates, also stood out among the top equipment sectors.

While the survey highlighted areas of optimism, it also pointed to potential threats and challenges in the secondary market. With a balanced understanding of these factors, businesses in these sectors can position themselves for success in the dynamic world of equipment leasing and finance.

The Equipment Leasing and Finance Association (ELFA) has been at the forefront of promoting industry development, advocating for the equipment finance sector, and providing valuable resources for industry professionals. However, in recent years, ELFA noticed a growing concern regarding the aging workforce within the industry. To address this issue, ELFA introduced innovative programs aimed at attracting new, young talent and fostering strong connections with emerging employees from member companies. In this blog post, we will delve into ELFA’s initiatives and hear from ELFA’s President and CEO, Ralph Petta, along with members Scott Thacker and Nathan Gibbons, about their experiences with these programs and their outcomes.

The Graying of the Industry?

While the notion of the equipment finance industry graying might be anecdotal, ELFA considers attracting young talent and raising awareness as pivotal aspects of its mission. The industry, like many others, is facing the impending retirement of baby boomers, which highlights the need to welcome the next generation of professionals, specifically millennials, into the fold. Additionally, the low personnel turnover in the industry contributes to the perception of graying, as many individuals find endless opportunities within the sector and tend to stay for the long term.

The Guest Lecture Program: Bridging Industry and Education

In 2012, the ELFA’s Financial Institutions Business Council Steering Committee recognized the necessity for a resource that could educate others about the equipment leasing and finance industry. This realization led to the creation of the Guest Lecture Program, which encourages member company leaders to establish relationships with educational institutions by conducting on-site presentations on the industry’s overview. Members use a standardized slide deck to present what the industry entails, how it operates, and its significance for businesses and municipalities.

The Emerging Talent Advisory Council (ETAC): Nurturing Up-and-Coming Talent

Complementing the Guest Lecture Program, ELFA established the Emerging Talent Advisory Council (ETAC) in 2014. This dedicated focus group works to assess how the association can engage and support industry employees in the early stages of their careers. By providing events and networking opportunities, ETAC aims to foster strong connections between young talent and the equipment finance industry.

In the Field: Success Stories

Many ELFA members have actively participated in the Guest Lecture Program and ETAC, creating positive outcomes for both the industry and the students involved. For instance, Scott Thacker, CEO of Ivory Consulting and ELFF Vice Chairman, presented a guest lecture at the Wharton School’s San Francisco campus. By customizing the presentation to highlight technology and entrepreneurial opportunities within the industry, Thacker engaged the audience effectively.

Nathan Gibbons, Vice President at First American Equipment Finance and a member of ETAC, also had a fruitful experience. He delivered several lectures, emphasizing the personal connections he developed with the industry. By sharing his journey and passion for the field, Gibbons piqued students’ interest and raised awareness about equipment finance as a viable career option.

The Effectiveness of ELFA’s Initiatives

As the Guest Lecture Program and ETAC are still relatively young initiatives, their tangible impact is continuously evolving. ELFA President and CEO Ralph Petta remains cautiously optimistic about the programs’ success, given the positive enthusiasm and interest they have generated so far. Going forward, ELFF, the association’s research affiliate, will oversee the Guest Lecture Program, further strengthening its connection with the academic community.

Nathan Gibbons views the effectiveness of the programs beyond the number of resumes submitted. He believes that the initiatives foster meaningful relationships between students, educators, and the industry, providing students with more career options and enhancing classroom experiences. Additionally, he highlights that the Guest Lecture Program has exposed exceptionally talented individuals to the industry who might not have discovered it otherwise.

Why They Do It: The Drive to Attract New Talent

The members who participate in the Guest Lecture Program and ETAC have strong motivations for their involvement. For ELFF Vice Chairman Scott Thacker, it is about giving back to the industry and helping to develop the next generation of professionals, just as he was mentored during his early days. Similarly, for Nathan Gibbons, it is a sense of personal responsibility to give back to an industry that has provided him with countless opportunities.

ELFA’s proactive approach to attracting new talent and combatting the perceived “graying of the industry” is commendable. Through the Guest Lecture Program and ETAC, ELFA has successfully engaged with academic institutions and emerging professionals, providing invaluable insights into the world of equipment finance. As the industry continues to evolve, these programs will play a vital role in shaping the future workforce and ensuring the continued success of the equipment leasing and finance sector.

The global leasing industry has reached a remarkable milestone, with overall annual volumes surpassing $1 trillion in 2016. According to the 20th annual Global Leasing Report by White Clarke Group, the leasing sector has rebounded strongly from the aftermath of the great recession, showcasing growth that outpaces the overall economy. This marks the fifth consecutive year of expansion for the industry since the global economic crisis. The report highlights the dominance of North America in the leasing market, the impressive performance of Europe driven by auto finance, and the rapid rise of China in the Asian region.

Global Leasing Industry Reaches $1 Trillion Milestone
The leasing industry has proven its resilience by reaching a significant milestone of $1 trillion in annual volumes in 2016. After enduring the impact of the great recession, the sector has steadily grown for five consecutive years, demonstrating its remarkable recovery and robustness. The Global Leasing Report released by White Clarke Group presents compelling evidence of the industry’s strength, outpacing the growth of the overall economy.

The surge in the leasing market can be attributed to several factors. First and foremost, businesses and consumers are increasingly favoring leasing over purchasing due to the many benefits it offers. Leasing allows companies to access state-of-the-art equipment and technology without significant upfront costs, while individuals can enjoy the latest products without the burden of ownership. Additionally, leasing agreements often come with attractive tax incentives, making it an appealing choice for both companies and individuals.

North America Leads the Global Leasing Market
North America continues to dominate the global leasing industry, solidifying its position as the largest leasing region worldwide. The United States, in particular, stands out as the world’s largest leasing market, experiencing double-digit growth.

The strong performance of the North American leasing market can be attributed to various factors. The region’s thriving business environment, technological advancements, and favorable regulatory landscape have all contributed to the growth of the industry. Moreover, companies in North America have recognized the strategic advantages of leasing, allowing them to conserve capital, reduce risks, and improve overall operational efficiency.

Despite the challenges posed by the recent economic events, such as Brexit and the election of Donald Trump as U.S. president, the North American leasing industry has remained resilient. While there might be some short-term volatility in the global foreign exchange and stock markets, the overall outlook for the leasing sector remains positive.

Europe’s Promising Leasing Market Driven by Auto Finance
Europe’s leasing market has shown considerable progress in recent years, with two of its largest and most mature countries, the UK and Germany, leading the way. The UK, in particular, achieved a notable 14% increase in leasing volumes, signaling a growing preference for leasing solutions.

The growth of the European leasing industry can be partly attributed to the flourishing auto finance sector. As more consumers and businesses opt for leasing vehicles instead of purchasing them outright, the demand for auto finance has surged. Leasing provides flexibility, affordability, and the opportunity to drive the latest models without the long-term commitment of ownership. This trend has contributed significantly to the region’s leasing market growth.

Asia Emerges as a Key Player in the Global Leasing Market
Asia has emerged as a powerhouse in the global leasing market, showing the fastest growth among all regions. China, in particular, has played a crucial role in driving this expansion, with its leasing market expanding by more than 25% in just one year.

The growth of Asia’s leasing industry can be attributed to various factors. First and foremost, the region’s focus on infrastructure development and manufacturing has spurred demand for leasing equipment and machinery. As businesses seek cost-effective ways to acquire essential assets, leasing has become a viable solution.

Furthermore, the flourishing car market in Asia has contributed significantly to the region’s leasing industry growth. With a resilient car market, businesses and individuals have turned to leasing as an attractive option for obtaining vehicles. Leasing offers them the flexibility to upgrade to newer models and access the latest automotive technologies.

The global leasing industry has experienced substantial growth for five consecutive years, surpassing the $1 trillion milestone in annual volumes. North America remains at the forefront of the industry, with the United States leading as the largest leasing market. Europe has also shown significant progress, particularly in the UK and Germany, where auto finance has been a driving force. Meanwhile, Asia’s leasing market, spearheaded by China, has exhibited rapid expansion due to infrastructure development and a resilient car market. Despite potential economic uncertainties, the leasing sector continues to thrive, offering businesses and consumers flexible and cost-effective solutions for acquiring essential assets.

In today’s competitive business landscape, equipment leasing companies face the challenge of staying ahead of the competition and expanding their originations. One effective strategy to achieve this is through the formation of bank referral programs. A bank referral program is a mutually beneficial agreement between a commercial bank and an equipment financing company, aiming to refer and fund ongoing equipment transactions for the benefit of all parties involved. While it may initially seem counterintuitive for banks and equipment financing companies to collaborate, establishing a referral partnership can lead to significant benefits for the customer, the banker, and the equipment leasing company alike.

The Perils of Avoiding Bank/Leasing Company Relationships

Before delving into the benefits of bank referral programs, it’s crucial to understand the potential problems that arise when such partnerships are not formed. When business owners seek equipment financing, they often turn to their banks first, expecting a seamless process due to their existing banking history. However, banks may have limited experience with equipment financing, leading to declined credit applications and strained customer relationships. On the other hand, if equipment leasing companies dismiss banker relationships as competition, they miss out on accessing quality clients. Consequently, without collaboration, potential deals may fall through, resulting in lost business opportunities.

The Benefits for Customers

Customers stand to gain numerous advantages from bank referral programs, making it a valuable proposition for their equipment financing needs. When a bank has a strong relationship with an equipment financing company, customers have a better chance of securing financing even if they face challenges such as challenged credit or limited options at their bank. Additionally, referral partnerships provide access to flexible financing options and “application-only” financing, which may require limited or no financial reporting. By choosing an equipment leasing company, customers can preserve their bank lines of credit and retain their trusted banker relationships.

The Advantages for Bankers

Contrary to initial assumptions, bankers also reap significant benefits from collaborating with equipment leasing companies through referral programs. Firstly, referring customers to leasing companies allows bankers to nurture customer relationships as full-service financial solutions providers. This helps in cases where the bank may be uncomfortable funding certain types of equipment or adhering to stricter lending criteria. Additionally, leasing companies can assist bankers in building relationships with customers who initially seek smaller credit requests, acting as a gateway to a full banking relationship. Furthermore, by referring clients to trusted leasing partners, bankers can prevent competitors from luring their clients away and maintain their position as the clients’ choice for future banking needs.

The Advantages for Equipment Financing Companies

For equipment leasing companies, developing strong bank referral relationships offers numerous advantages beyond growing originations. Partnering with banks enhances the company’s credibility and fosters lasting customer relationships. Contrary to common belief, bank-referred clients often have stronger credit profiles and lower default rates compared to vendor-referred business. Moreover, bank referrals streamline the client acquisition process as potential customers are already interested in equipment financing, and the banker has already conducted preliminary discussions and shared relevant financial information with the lessor.

Managing the Risks

While the benefits of bank referral programs outweigh the risks, it’s essential to acknowledge and manage potential challenges. Maintaining relevance and preventing bankers from feeling left behind after referring clients requires constant communication and transparent business practices. Additionally, both bankers and lessors should understand each other’s preferred types of business to avoid the client being turned down multiple times. Addressing the perceived rivalry between banks and equipment leasing companies is crucial to kickstarting successful bank referral partnerships.

Forming bank referral programs presents a golden opportunity for equipment leasing companies to enhance their originations and expand their customer base. By fostering collaboration and setting aside perceived competition, both banks and leasing companies can benefit from a bank referral partnership. Customers gain access to flexible financing options and maintain their trusted banker relationships. Bankers can nurture customer relationships and prevent competitors from penetrating their client base. Equipment financing companies access potential clients more easily and establish credibility with the support of reputable banks. Embracing bank referral programs is a proactive step towards success in the competitive equipment financing industry.

In December 2016, the Equipment Leasing and Finance Association (ELFA) reported a 3% year-over-year decrease in new business volume (NBV), totaling $12.1 billion. Despite this decline, the month-to-month volume saw an impressive 89% spike, reaching $6.4 billion. The cumulative new business volume for the entire year was down 2% from 2015. Ralph Petta, ELFA President, expressed cautious optimism, attributing it to the anticipated business-friendly policies under the new Trump Administration.

Additionally, the Equipment Leasing & Finance Foundation’s monthly confidence index for January 2017 soared to 73.4, the highest level since its launch in 2009, signaling positive sentiments and a potential upswing in the industry. This blog post delves deeper into the report’s findings and explores the factors that might impact the equipment leasing and finance sector in 2017.

Equipment Leasing and Finance Trends in 2016
Throughout 2016, the equipment leasing and finance industry experienced both highs and lows. December saw a 3% decline in new business volume compared to the previous year, resulting in concerns about the industry’s stability. However, there was a significant surge in volume from November to December, indicating a positive end-of-year trend.

ELFA President Ralph Petta acknowledged the slight downturn in full-year originations but remained optimistic about the future. Many business owners shared this cautious optimism, hoping for favorable policies and economic growth under the Trump Administration.

The credit market metrics remained within acceptable ranges, boosting the industry’s confidence despite the fluctuating figures. Credit approvals, for instance, showed an improvement, reaching 77.4% in December, compared to 76% in November. This uptick in approvals suggests an increased willingness among financial institutions to fund equipment leasing and financing ventures.

A Closer Look at Delinquencies and Charge-offs
Delinquency rates and charge-offs are crucial indicators of the industry’s health, and in December 2016, the ELFA reported mixed results. Receivables over 30 days increased to 1.40%, up from 1.30% in the previous month and 1.10% in the same period in 2015. This uptick could be attributed to various factors, including changing economic conditions and specific industry challenges.

However, charge-offs remained relatively stable at 0.42%, only slightly up from the previous month’s 0.40%. This consistent figure suggests that despite some uncertainties, equipment leasing and finance companies managed their credit risks effectively.

Confidence and Investments in the Industry
The Equipment Leasing & Finance Foundation’s monthly confidence index for January 2017 rose to 73.4, marking the highest level since its inception in 2009. This boost in confidence indicated that industry players were increasingly positive about the future and the potential for growth.

Mike Jones, Managing Director of CIT Equipment Finance, shared insights from his company’s perspective. He emphasized that small and medium-sized organizations were exhibiting greater commitment to invest in capital equipment, a promising sign for economic expansion. Businesses were eager to offer better products and services to their customers, and they recognized the importance of investing in equipment to support their growth.

Prospects for the Equipment Leasing and Finance Industry in 2017
Looking ahead, the equipment leasing and finance industry in 2017 could be impacted by various factors. The key driver of optimism is the expectation of business-friendly policies under the new Trump Administration. Business owners are hopeful that these policies will stimulate capital investment and foster economic growth, which could positively affect equipment leasing and financing activities.

Additionally, advancements in technology may play a significant role in shaping the industry’s landscape. New technologies and innovations are constantly emerging, revolutionizing how businesses operate and necessitating the acquisition of updated equipment. Equipment leasing and finance companies that stay ahead of these technological developments are likely to gain a competitive edge.

Moreover, as the economy recovers from any setbacks, businesses might become more willing to invest in expansion plans, leading to an increased demand for leasing and financing solutions. Equipment leasing can offer a flexible and cost-effective approach to acquiring the necessary tools for growth, and savvy entrepreneurs will see this as an attractive option.

While the equipment leasing and finance industry experienced a slight dip in 2016, it ended on a cautiously optimistic note, with a strong month-to-month increase. As the Trump Administration assumed power, business owners hoped for favorable policies that would support economic growth and investment.

The industry’s ability to manage credit risks effectively, coupled with growing confidence and commitment to investment, points to a potential uptick in equipment leasing and financing activities in 2017. Furthermore, advancements in technology and the overall economic outlook will play a crucial role in shaping the industry’s trajectory.

As businesses adapt to the changing landscape, equipment leasing and financing companies must remain agile and innovative to cater to the evolving needs of their clients. By embracing these changes and focusing on customer-centric solutions, the industry is positioned for a promising year ahead.

In the world of sales, attitude plays a significant role in determining success. A confident salesperson can effortlessly attract customers and close deals, while those harboring fear and resentment are more likely to make poor decisions and encounter objections. In this blog post, we will explore the relationship between confidence and sales success, focusing on how resentment can negatively impact a sales rep’s performance. By understanding the power of confidence and learning to overcome resentment, sales professionals can elevate their skills, build stronger customer relationships, and ultimately boost their sales figures.

Understanding the Impact of Resentment on Sales

Resentment can act as a dark cloud that hovers over a salesperson, affecting their interactions with customers and colleagues alike. Consider the case of Dario, who was constantly plagued by rate objections, leading him to believe that his company’s rates were too high. He resented his sales manager, the office politics, and felt envious of his colleagues. However, what he failed to realize was that his attitude and resentment were likely contributing to the rate objections he encountered.

The Role of Confidence in Sales Success

Confidence is a powerful attribute that can significantly impact a salesperson’s success. A confident sales rep exudes credibility and assurance, making prospects feel at ease and more likely to choose them over competitors. Remembering a time when confidence was at its peak can help salespeople recreate that state of mind when facing objections or presenting proposals.

Overcoming Rate Objections with Confidence

Addressing rate objections is a common challenge for sales professionals. Rather than viewing objections as negative, a confident salesperson can approach them as an opportunity to showcase value and negotiate effectively. To handle rate objections with confidence:

1. Be Prepared: Sales reps should thoroughly understand the company’s offerings and be ready to communicate the value of their products or services.
2. Reframe the Conversation: Instead of solely focusing on price, highlight the unique benefits and advantages that set your offerings apart.
3. Position Value: Demonstrate how choosing your product or service will result in long-term benefits and returns, outweighing any initial cost concerns.
4. Negotiate Strategically: Treat negotiation as a game and enjoy the process. Offer trade-offs or concessions strategically to arrive at a win-win situation.

Combatting Resentment and Fostering Positivity

Resentment is a corrosive force that can hinder sales productivity and personal growth. Sales reps must actively work on shifting their focus towards positivity and self-improvement. Here are some effective strategies to combat resentment:

1. Gratitude Practice: List the positive aspects of the job, such as benefits, supportive coworkers, or a convenient commute. Practicing gratitude can shift focus away from negativity.
2. Embrace Strengths: Identify personal strengths and focus on honing them to build confidence and effectiveness as a sales professional.
3. Seek Supportive Feedback: Surround yourself with positive and encouraging individuals who can provide constructive feedback and motivation.
4. Set Goals: Challenge yourself with achievable but stretching goals, and celebrate small victories to reinforce positivity.

In the competitive world of sales, confidence is the key to success. Overcoming resentment and cultivating a positive mindset can elevate sales professionals to new heights. By understanding the relationship between confidence and sales success, and adopting strategies to combat negativity, sales reps can transform their attitudes and build stronger customer relationships. Confidence not only attracts customers but also empowers salespeople to navigate objections and negotiations with ease. Ultimately, a confident and positive approach can lead to increased sales, making the difference between an average salesperson and an outstanding one.

The Equipment Leasing and Finance Association (ELFA) revealed its Top 10 Equipment Acquisition Trends, delving into the key trends driving this growth and exploring how the changing economic and regulatory environment is fostering improved business conditions. With over $1.5 trillion to be spent on capital goods and fixed business investment, including software, businesses, nonprofits, and government agencies are poised for positive momentum in equipment investment.