New Study Tackles: How Big is Equipment Finance – Really!
Posted 05/29/07
Over the last few years, the equipment leasing and finance industry has evolved from being equipment leasing-centric to offering full-service capital finance. In line with this seismic shift, the Foundation has recognized the need for all industry members to better understand the market they operating in – from its actual size to customer behaviors and motivations. This summer two monumental studies will be delivered to address these issues: a study focused on the market size of the equipment finance industry and a study on end user’s propensity to finance equipment (beyond leasing).
For the first time, the “market sizing” study, titled Sizing the Present & Future Equipment Finance Marketplace, will offer solid statistics on the size of the equipment lease and finance market. Global Insight, the market research firm commissioned to conduct the study, will analyze the size of the U.S. equipment finance market at both the national and state levels, including multi-year projections on its growth, type of entities involved, and market opportunities. The findings will help clarify the importance of equipment financing, allowing regulators and industry professionals to make decisions in the proper context of both the present and future marketplace.
The second study, Propensity of Businesses to Lease and Finance Capital Equipment Purchases, also conducted by Global Insight, will offer insights from end-users on how they are making decisions to pay for capital. The influencing factors, market scenarios and other decision-making issues will be explored. The study’s findings will demonstrate the importance of equipment financing programs and will assist lenders in identifying characteristics that sway the financing decision. An extensive survey targeting persons knowledgeable about company equipment expenditures and the methods in which they are financed, will produce predictive models that include a forecast for future expenditures. Additionally, the data will be presented by financing mechanism (lease, loan and other financial products).
Both studies will be delivered in late summer.
Sites of Reference:
http://www.leasefoundation.org/Work/grants/currentrsrch.htm
CONTACT:
Lisa A. Levine, CAE
Equipment Leasing & Finance Foundation
Phone Number: 703-527-8655
Fax Number: 703-465-7488
E-mail: llevine@elfaonline.org
