Each quarter, the Equipment Leasing and Finance Association publishes its "Beige Book," which compiles economic indicators as reported by members of the association's Business Council Steering Committee (BCSC). This report provides a snapshot of the state of the industry from its four primary sectors - captive and vendor finance firms, financial institutions, independent midlle market companies and small ticket firms.
Brian Madison, senior vice president of manufacturer and vendor alliances at Key Equipment Finance, is chair of the captive and vendor finance BCSC. He weighs in with his colleagues representing other sectors for the Summer 2015 Sector Report - which shows steady growth across the industry - in the current issue of the ELFA Magazine.
According to the ELFA, the equipment finance industry has been enjoying quarter after quarter of strong portfolio quality and new business generation. While rising interest rates and ongoing uncertainty about new accounting standards weigh on the minds of industry leaders, most are reporting overall new business growth and optimism about the future.
The article reports that overall, 68% of members surveyed reported an increase in new business, driven largely by increased customer demand. It also seems as though demand is high across a wide variety of sectors, including both government and IT.
Madison even sees opportunity around the new lease accounting standards, which are expected later this year. He sees the changes driving a demand for bundled hardware and software packages and managed services instead of a traditional lease or loan that will result in having assets on the books.
"Customers are coming to us with questions that clearly reflect misinformation that they read or heard somewhere, so we spend time educating them and alleviating their concerns," he said.
Check out the full story in summer issue of the ELFA Magazine here.