Leasing News and Information

Equipment Outlook 2018

By Erin Yogerst October 10, 2018

Wondering what the most porlific equipment being leased in 2018 is? A survey was taken of ELFA (Equipment Leasing and Financing Association) member asset managers and consultants, and the results are out.

The hottest equipment sectors in 2018 are construction, machine tools, trucks/trailers, IT, containers/chassis and medical equipment with the biggest role being played by construction equipment. Read the full analysis here.

Equipment Leasing vs. Equipment Financing

By Erin Yogerst October 10, 2018

Outright purchasing equipment for short term use often doesn't make financials sense. Outright purchasing equipment for short term use often isn't in the budget. When your company has these type of equipment needs, the choice is between leasing and financing the equipment. There are certain considerations to be factored and certain benefits to each route.

Learn how equipment financing work, how equipment leasing works, and which is right for you.

Top 10 Equipment Acquisition Trends for 2018

By Erin Yogerst October 10, 2018

The Equipment Leasing and Finance Association (ELFA) has recently named it's top 10 trends in 2018 for equipment acquistion:
  1. Capital spending will have its strongest performance in six years.
  2. Look for strengthening positive momentum in financed equipment acquisitions.
  3. Tax reform will help unleash pent-up demand by businesses for new equipment.
  4. Higher interest rates will loom as the economy grows and tax reform is enacted.
  5. Technological advances in equipment will attract businesses looking to improve efficiencies.
  6. Key equipment verticals will continue to rebound in 2018.
  7. Businesses will ramp up efforts to fulfill requirements of new accounting rules for their leased equipment.
  8. Financing options and services for equipment acquisitions will be more innovative and customer driven.
  9. Trade issues will pose headwinds affecting global demand for U.S. business exports.
  10. External “wild cards” will factor into equipment acquisition decisions.
Read the full article here.

The Future of Equipment Finance

By Erin Yogerst October 10, 2018

There are five major forces of change in the equipment finance industry:
  1. Societal
  2. Technological
  3. Environmental (Regulatory)
  4. Economical
  5. Political
These factors push and pull the industry in ways that are often difficult predict. However, this doesn't mean it isn't worth speculating what the future may hold. Here are some ideas of what the future may hold.

New Lease Accounting Standards

Who is affected and how?

By Erin Yogerst - February 8, 2016

One of the many reasons companies lease equipment and products is how they can claim it on their balance sheet. It is listed as an operating lease in the footnotes as "off balance sheet". This means the item leased is considered an asset to the company and the lease itself has tax insentives, which in turn improves the company's financial ratios.

But there are many companies that have over 50% of their leasing commitments listed as "off balance sheet". This makes it difficult for investors to get an accurate read on the company's worth. The new standards are being put into place with the intent to protect investors and make the leases more transparable.

The new standards can be found here: http://explore.leaseaccelerator.com/off-balance-sheet-lease-study/

The complete report can be found here: http://explore.leaseaccelerator.com/wp-content/uploads/2016/01/Who-is-Most-Impacted-by-the-New-Lease-Accounting-Standards-d.pdf