Most equipment finance companies have offered payment deferrals

Confidence in the equipment finance market rose significantly, according to the lastest Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). Figures from the Equipment Leasing & Finance Foundation show confidence at 56.5, an increase from the August index of 48.4. The foundation also released highlights of the COVID-19 Impact Survey of the Equipment Finance Industry, showing that 91% of equipment finance companies have offered payment deferrals, including extensions, modifications or restructuring. It also found that 73% of companies expect that the default rate will be greater in 2020 than in 2019, down from 76% last month; 20% expect it to be the same compared to 19% in August; and 7% expect it to be lower compared to 5% last month. A majority (78%) of companies have not furloughed or laid off employees since the start of the pandemic. When asked to assess their business conditions over the next four months, 35.7% of executives responding said they believe business conditions will improve over the next four months, up from 24.1% in August. 46.4% believe business conditions will remain the same over the next four months, a decrease from 51.7% the previous month. 17.9% believe business conditions will worsen, a decrease from 24.1% in August.