Equipment finance sentiment rises
Thursday, 24 September 2020
Washington, DC, United States
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
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.