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Equipment Finance Industry Confidence Reaches Three-Year High

Washington, DC, November 21, 2024 – The Equipment Leasing & Finance Foundation (the Foundation) releases the November 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. Overall, confidence in the equipment finance market is 67.5, up from the October index of 61.8, and the highest level since August 2021. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1.3 trillion equipment finance sector. Approximately half of the survey responses were submitted prior to the elections and half were submitted after.

When asked about the outlook for the future, MCI-EFI survey respondent Charles Jones, Senior Vice President, 1^st Equipment Finance, Inc., said, “Businesses still need equipment. Political uncertainty has had an impact and should resolve itself. With the election behind us, businesses will need to continue to operate and look to grow. Calmer heads seem to be prevailing and the industry is coming back. Delinquency has hopefully leveled, and lenders are licking their wounds and looking forward.”

November 2024 Survey Results:
The overall MCI-EFI is 67.5, up from the October index of 61.8

Business conditions – When asked to assess their business conditions over the next four months, 43.3% of the executives responding said they believe business conditions will improve over the next four months, an increase from 37.9% in October. 50% believe business conditions will remain the same over the next four months, down from 51.7% the previous month. 6.7% believe business conditions will worsen, down from 3% in October.
Capex demand – 48.3% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 44.8% in October. 44.8% believe demand will “remain the same” during the same four-month time period, up from 41.4% the previous month. 6.9% believe demand will decline, a decrease from 13.8% in October.
Access to capital – 37.9% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, up from 27.6% in October. 62.1% of executives indicate they expect the “same” access to capital to fund business, down from 72.4% last month. None expect “less” access to capital, unchanged from the previous month.
Employment – When asked, 44.8% of the executives report they expect to hire more employees over the next four months, an increase from 24.1% in October. 48.3% expect no change in headcount over the next four months, down from 65.5% last month. 6.9% expect to hire fewer employees, down from 10.3% in October.
U.S. economy – None of the leadership evaluate the current U.S. economy as “excellent,” down from 6.9% the previous month. 96.7% evaluate the economy as “fair,” up from 93.1% in October. 3.3% evaluate it as “poor,” an increase from none last month.
Economic outlook – 60% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, up from 37.9% in October. 36.7% indicate they believe the U.S. economy will “stay the same” over the next six months, down from 51.7% last month. 3.3% believe economic conditions in the U.S. will worsen over the next six months, a decrease from 10.3% the previous month.
Business development spending – In November, 36.7% of respondents indicate they believe their company will increase spending on business development activities during the next six months, up from 34.5% the previous month. 56.7% believe there will be “no change” in business development spending, an increase from 55.2% in October. 6.7% believe there will be a decrease in spending, down from 10.3% last month.

November 2024 MCI-EFI Survey Comments from Industry Executive Leadership:

Independent, Small Ticket
“I’m still concerned about the state of the consumer and the U.S. from a debt load perspective, but more optimistic on growth after the U.S. election cycle.” Mark Bonanno, President and COO, North Mill Equipment Finance

“The election is over. Looking forward, Trump’s policies will improve the economy and begin reducing government over-regulation.” James D. Jenks, CEO, Global Finance and Leasing Services, LLC

How may I access the MCI-EFI?
Survey results are posted on the Foundation website, https://www.leasefoundation.org/industry-resources/monthly-confidence-index/. Details about the MCI, including who participates, how it’s designed, and the survey respondent demographics are also available at the link above.

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ABOUT THE FOUNDATION
The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and student talent development programs that contribute to industry innovation, individual careers, and the advancement of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at www.leasefoundation.org

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Media Contact: Kelli Nienaber, knienaber@leasefoundation.org

Equipment Leasing & Finance Foundation Elects Officers, Welcomes New Trustees, and Presents Research Award During Annual Meeting

Washington, DC, November 19, 2024 – The Equipment Leasing & Finance Foundation (Foundation) announces the 2025 officers of its Board of Trustees (Board). Board Officers serving are Zack Marsh, CLFP, SVP, Accounting and Analysis, AP Equipment Financing as Chair; Miles Herman, CEO, LEAF Commercial Capital, Inc. as Vice Chair; Peter Bullen, EVP & Group Head, Key Equipment Finance as Secretary/Treasurer; and Leigh Lytle, President and CEO, Equipment Leasing and Finance Association (ELFA) as President. Nancy Pistorio, CLFP, President, Madison Capital LLC is Immediate Past Chair. The officer elections were held during the Board‘s annual meeting.

New members appointed to the Foundation Board of Trustees include Eric McGriff, Chief Risk Officer, 36^th Street Capital, and Shari Williams, Chief Risk Officer, SLR Equipment Finance.

“We are privileged to have the leadership experience, professional expertise and commitment of our Trustees to guide the Foundation in 2025,” said Zack Marsh. “We’re grateful for their dedication to the Foundation’s mission to advance the equipment finance industry and the success of everyone in it.”

Trustees continuing on the Board for 2025 are:

Andrew Blacklock, Vice President, Strategy and Business Operations, Cisco Systems Capital Corporation
Jim DeFrank, EVP and Chief Operating Officer, Isuzu Finance of America, Inc.
Jeffrey Dicosola, Sales Manager, Great American Insurance Group
Cindy Fleck, CLFP, Senior Vice President and General Manager Equipment Finance, Channel
Martin Klotzman, CLFP, Director of Marketing and Operations, Ivory Consulting Corporation
Shari Lipski, CLFP, Principal, ECS Financial Services, Inc.
Mark Loken, Vice President, CoBank Farm Credit Leasing
David Normandin, CLFP, President and CEO, Wintrust Specialty Finance
Brittany Ogden, Attorney, Partner, Quarles & Brady LLP
Ricardo E. Rios, CFA, CLFP, President & COO, Commercial Equipment Finance, Inc. (CEFI)
William Tefft, Equipment Manager – Corporate Asset Finance, EverBank Corporate Asset Finance
Donna Yanuzzi, EVP, 1st Equipment Finance, Inc.

Kelli Nienaber will continue to serve as Executive Director.

Steven R. LeBarron Award
Research Committee Chair Valerie Gerard honored Board Trustee Will Tefft with the Steven R. LeBarron Award for Principled Research. He has been a member of the Foundation Research Committee (FRC) and a Foundation Trustee since 2020. In that time, he has been the lead in developing the Foundation’s Vertical Market Outlook Series of reports and the associated vertical podcast series. He has been instrumental in the development of podcast episodes covering trucking, IT equipment, additive manufacturing, and corporate aircraft, among other topics. This award is presented annually in memory of Steven LeBarron to the FRC member who demonstrates the insight, fortitude, and dedication he exemplified.

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Media Contact: Kelli Nienaber, knienaber@leasefoundation.org

Q4 2024 Equipment Leasing & Finance Industry Snapshot Now Available

The Equipment Leasing & Finance Foundation has released the Q4 2024 Equipment Leasing & Finance Industry Snapshot, an indispensable information resource for industry participants. Designed for use in executive briefings and presentations, the slide deck summarizes the current conditions and projections for the U.S. economy and equipment finance industry with clear, easy-to-digest charts and short narratives of key trends.

Among the wide range of details in the Q4 2024 Snapshot:

The Foundation projects that the U.S. economy will grow by 2.7%.
- The U.S. economy expanded at 3.0% (SAAR) in the second quarter of 2024, an increase from 1.6% growth in Q1 2024.
- Overall, a recession in 2024 remains unlikely. Layoffs remain low by historical standards and real wage growth is healthy, inflation is modestly elevated but largely contained, and the prospect for additional rate cuts later this year and next year should provide a boost to hiring and investment.
Economic tailwinds include consumer spending supported by a boost in inventories, business investment, and government spending.
Economic headwinds include negative growth in residential investment and net exports.
Equipment and software investment is expected to grow at a 4.4% annualized pace in 2024.
- E&S investment expanded 7.0% in Q2 (annualized) after growing by 4.0% in Q1, and is expected to moderate in the latter half of 2024.
- Business investment grew in Q2, rising 3.9% (annualized). Growth contracted slightly from 4.5% in the previous quarter.
By equipment type, investment growth in the coming six months appears set to
- Expand in ships & boats and aircraft.
- Decline in construction machinery, medical equipment, railroad equipment, and trucks.
New business volume growth reported in ELFA’s Monthly Leasing and Finance Index in August was down 10% year-over-year, but remained up 3.5% year-to-date.
Special Topics:
- Economic impact of tariffs – While tariffs have their place in U.S. trade policy, broad application would damage growth.
- A Softening Labor Market Sparks Economic Anxiety – A period of normalization or a period of slowing?

Prepared by Keybridge Research and updated quarterly, the snapshot is available for free download at https://www.leasefoundation.org/industry-resources/industry-snapshot/

Media contact: Kelli Nienaber, knienaber@leasefoundation.org

Equipment Finance Industry Expands to More Than $1.3 Trillion as Sector Supports U.S. Economic Growth and Innovation, Foundation Horizon Report Finds

End-users expect to increase their equipment and software acquisitions in 2025 with 77% using financing

Washington, DC, October 28, 2024—The equipment finance industry expanded to an estimated $1.34 trillion in 2023—a new all-time high—with 82% of end-users using some form of financing to fund their equipment and software (E&S) acquisitions, according to an end-user survey from the Equipment Finance Industry Horizon Report 2024. The report, which was released today by the Equipment Leasing & Finance Foundation and prepared by Keybridge, also reveals that approximately 57.7% of the $2.3 trillion (nominal) in E&S investment in 2023 was financed.

The Horizon Report focuses on the Foundation’s biennial survey of equipment end-users, which was conducted this summer. Using data collected through the survey, the Foundation estimates the current size of the equipment finance industry, assesses the propensity to finance private sector equipment investment for key equipment verticals, and forecasts end-user plans to acquire and finance equipment in 2025.

Leigh Lytle, President of the Foundation, and President & CEO of the Equipment Leasing and Finance Association, said, “The trillion-dollar equipment finance industry has always been the backbone of capital investment, which is a critical component of the U.S. economy. This Horizon Report clearly shows the extent to which businesses and other organizations rely on commercial financing with the majority of public and private sector capital expenditures acquired through loans, leases, or lines of credit. Our industry financed supply chains and supported business growth that helped stave off recessionary pressures amid elevated inflation and high interest rates, enabling equipment and software investment to expand in 2023. The report also indicates the industry is well positioned to support forecasted increases in equipment and software, including innovative, high-growth areas like generative AI, equipment-as-a-service (EaaS) subscription-based models, and climate financing. This report delivers must-have insights that will help business leaders and decision makers stay ahead of the game.”

Highlights from the Horizon Report include:

Equipment finance industry growth. According to official government figures, E&S investment (both financed and not financed) expanded by a solid 5.3% in 2023 to $2.3 trillion (nominal). The Foundation’s estimate that approximately 57.7% of this investment (and 64.2% of private sector investment, per the end-user survey) was financed yields an estimated industry size of $1.34 trillion. This figure represents 7.1% nominal growth for the equipment finance industry compared to 2022.
End-user reliance on financing. The end-user survey revealed that 82% of respondents who acquired equipment or software in 2023 used at least one form of financing to do so. This represents a slight uptick from the 79% of respondents indicated in the 2022 survey.
Increase in equipment and software acquisitions in 2025. End-users were roughly three times more likely to believe their E&S acquisitions will increase in 2025 (42%) versus decrease (15%). The most commonly selected verticals among end-users who plan to boost acquisitions were software, computers, office equipment, and communications equipment, reflecting the importance of these verticals to business operations in which hybrid/remote working arrangements, online sales channels, and incorporating AI and other new technology tools are critical. Importantly, more than three-fourths of end-users expect to use a financing method to cover at least a portion of the cost to acquire this equipment.
Emerging industry growth drivers. Tracking emerging trends in the equipment finance industry, the Foundation’s 2024 survey finds that currently, 42% of E&S end-users use generative AI in their businesses, and an additional 42% indicated that they intend to do so over the next two years. Regarding EaaS, half of end-users already use a subscription-based model for equipment and an additional 23% indicated that they intend to pursue this option in 2025. Meanwhile, nearly one-third of E&S was acquired to support energy-related, climate-related, or other environmental goals and pledges in 2023. With global climate finance expected to grow to $9 trillion by 2030, this is likely to be a key area of growth for the industry in the years ahead.
Top methods of payment to acquire equipment and software. According to the end-user survey, the most important payment method used by businesses to acquire equipment and software in 2023 was leasing (26% of total acquisitions), followed by secured loans (16%), lines of credit (14%), and unsecured loans (8%). Among non-financed acquisitions, paid-in-full credit card purchases were the most prevalent payment method (20%) followed by cash (16%).
Top reasons for financing. The top reasons end-users chose to finance their E&S acquisitions were “optimization of cash flow” (62%), “protection from equipment obsolescence” (55%), and “tax advantages” (51%).

Zack Marsh, Chair of the Equipment Leasing & Finance Foundation and SVP, Accounting and Analysis, AP Equipment Financing, said, “The Horizon report offers a detailed look at equipment acquisition and financing decisions for specific equipment verticals and industries, the key factors influencing the decision to use financing, and how financing decisions are likely to evolve over the next year. Looking ahead, both the report end-user survey and the overall economy provide reason to be optimistic about the industry’s prospects in 2025. Equipment finance industry executives can use the report information to better position their businesses for faster growth.”

Equipment Finance Industry Size, 2016–2027, Billions of Dollars (Nominal)

About the study
The Industry Horizon Report can be used in combination with other Foundation reports, including the quarterly Equipment Leasing & Finance U.S. Economic Outlook, the monthly Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor, and the annual Industry Future Council report, to better understand the current and near-term economic conditions and other relevant trends facing the equipment finance industry.

How to access the study
The 2024 Equipment Leasing & Finance Industry Horizon Report is available for free download at https://www.leasefoundation.org/industry-resources/horizon-report/.

All Foundation studies are available for free download from the Foundation’s online library at http://store.leasefoundation.org/.

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Q4 Update to the 2024 Economic Outlook Forecasts 4.4% Expansion in Equipment and Software Investment, 2.7% GDP Growth

Washington, DC, October 23, 2024 –The U.S. economy remains on strong footing, fueled in part by continued healthy investment in equipment and software, according to the Q4 update to the 2024 Equipment Leasing & Finance U.S. Economic Outlook. Real equipment and software investment growth is projected to be 4.4% in 2024, with a modest near-term outlook for investment growth and the potential for improvement next year as interest rate cuts start to take effect in the economy. The report, which was prepared by Keybridge and released today by the Equipment Leasing & Finance Foundation, also forecasts real GDP growth of 2.7% this year, a slight uptick from the Foundation’s Q3 update to the 2024 Economic Outlook published in July.

The Foundation’s report is focused on the $1.16 trillion equipment leasing and finance industry and highlights key trends in equipment investment, placing them in the context of the broader U.S. economic climate.

Leigh Lytle, President of the Foundation, and President & CEO of the Equipment Leasing and Finance Association, said, “The Foundation’s Q4 Outlook continues to support a soft-landing scenario and provides optimism for 2025 investment activity. The U.S. economy has been impressively resilient but heightened political and economic uncertainty, as well as weather-related business interruptions, are likely to slow investment growth in Q4. We are optimistic that activity will remain strong in 2025, however, as Fed rate cuts start taking effect and election-related uncertainty abates. The Monthly Confidence Index for the Equipment Finance Industry agrees with Q4 Outlook findings, holding steady in October at its highest level since 2022.”

Highlights from the Q4 update to the 2024 Outlook include:

Equipment and software investment bounced back in Q2 after three consecutive weak quarters, expanding by a strong 7.0% (annualized). Aircraft investment was primarily responsible for the improvement, along with information processing equipment, while industrial equipment contracted modestly.
The U.S. economy experienced broad-based growth in the second quarter, expanding at a 3.0% annualized rate (up from 1.6% in Q1). Softer-than-anticipated job growth and rising unemployment over the summer raised questions about the long-term sustainability of the current economic expansion. However, layoffs remain low by historical standards, real wage growth is healthy, inflation is modestly elevated but largely contained, and the prospect for additional rate cuts later this year and next year should provide a boost to hiring and investment. The economy appears poised for growth in the new year.
The manufacturing sector continues to struggle. Both shipments and new orders of core capital goods are sluggish, industrial production is soft, the ISM Purchasing Managers Index for Manufacturing has contracted for 22 out of the last 23 months, and manufacturing employment has fallen by 50,000 workers in 2024 (including 34,000 in the last two months).
Small business owners have adopted a more cautious posture despite generally favorable business conditions. Recent shifts in the labor market, rising geopolitical tension, and the 2024 election have led to a rapid rise in uncertainty that may depress investment activity in the near term. At the same time, if inflation remains in check and the Fed gradually cuts rates as expected, activity should pick up again in early 2025.
The Fed is characterizing its decision to cut rates by 50 bps rather than 25 bps as a “recalibration” rather than an emergency reaction to a weakening labor market. The Fed maintains that rate cuts are not intrinsically linked to a looming recession, but rather that a controlled easing of monetary policy, if properly timed and calibrated, can help keep the economy on track.

The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor, which is released in conjunction with the Economic Outlook, tracks 12 equipment and software investment verticals. In addition, the Momentum Monitor Sector Matrix provides a customized data visualization of current values of each of the 12 verticals based on recent momentum and historical strength. This month two verticals are expanding, two are peaking, four are recovering, and four are weakening. Over the next three to six months the Foundation expects the following trends to materialize on a year-over-year basis:

Agriculture machinery investment growth will continue to weaken.
Construction machinery investment growth will continue to contract.
Materials handling equipment investment growth may improve modestly.
All other industrial equipment investment growth will remain muted, though recent movement is encouraging
Medical equipment investment growth may expand modestly, but momentum is soft.
Mining and oilfield machinery investment growth will remain weak, though recent movement is encouraging.
Aircraft investment growth should continue to improve.
Ships and boats investment growth appears to have bottomed out and should improve.
Railroad equipment investment growth should remain positive, though momentum is slowing.
Trucks investment growth will remain soft and may turn negative.
Computers investment growth should continue to expand at a robust pace.
Software investment growth will expand at a solid pace.

The Foundation produces the Equipment Leasing & Finance U.S. Economic Outlook report in partnership with economic and public policy consulting firm Keybridge Research. The annual economic forecast provides the U.S. macroeconomic outlook, credit market conditions, and key economic indicators. The Q4 report is the third update to the 2024 Economic Outlook, and will be followed by the publication of the 2025 Economic Outlook in December.

Download the full report at https://www.leasefoundation.org/industry-resources/u-s-economic-outlook/.

Download the Momentum Monitor at https://www.leasefoundation.org/industry-resources/momentum-monitor/.

All Foundation studies are available for free download from the Foundation’s online library at http://store.leasefoundation.org/.

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Equipment Finance Industry Maintains High Confidence in October

Washington, DC, Oct 17, 2024 – The Equipment Leasing & Finance Foundation (the Foundation) releases the October 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. Overall, confidence in the equipment finance market is 61.8, steady with the September index of 61.9, which was the highest level since January 2022. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1 trillion equipment finance sector.

When asked about the outlook for the future, MCI-EFI survey respondent Brent Hall, CLFP, Senior Vice President, Alliance Funding Group, said, “The future for the American economy actually looks bright compared to the international scene, and manufacturing will continue to re-shore with increasing need for capital spending.”

October 2024 Survey Results:
The overall MCI-EFI is 61.8, steady with the September index of 61.9.

When asked to assess their business conditions over the next four months, 37.9% of the executives responding said they believe business conditions will improve over the next four months, a decrease from 40% in September. 51.7% believe business conditions will remain the same over the next four months, relatively unchanged from 52% the previous month. 10.3% believe business conditions will worsen, up from 8% in September.
44.8% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 44% in September. 41.4% believe demand will “remain the same” during the same four-month time period, down from 52% the previous month. 13.8% believe demand will decline, an increase from 8.4% in September.
27.6% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, up from 24% in September. 72.4% of executives indicate they expect the “same” access to capital to fund business, down from 76% last month. None expect “less” access to capital, unchanged from the previous month.
When asked, 24.1% of the executives report they expect to hire more employees over the next four months, an increase from 20% in September. 65.5% expect no change in headcount over the next four months, down from 68% last month. 10.3% expect to hire fewer employees, down from 12% in September.
6.9% of the leadership evaluate the current U.S. economy as “excellent,” up from none the previous month. 93.1% evaluate the economy as “fair,” down from 96% in September, while none evaluate it as “poor,” a decrease from 4% last month.
37.9% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, up from 24% in September. 51.7% indicate they believe the U.S. economy will “stay the same” over the next six months, down from 76% last month. 10.3% believe economic conditions in the U.S. will worsen over the next six months, an increase from none the previous month.
In October, 34.5% of respondents indicate they believe their company will increase spending on business development activities during the next six months, a decrease from 36% the previous month. 55.2% believe there will be “no change” in business development spending, down from 56% in September. 10.3% believe there will be a decrease in spending, up from 8% last month.

October 2024 MCI-EFI Survey Comments from Industry Executive Leadership:

Bank, Small Ticket
“With the upcoming election close and the Fed starting the cycle of rate cuts, the uncertainty around these specific concerns will lessen. I think this will help business get back to work solving their customers’ problems and increase investment in capital equipment. Additionally, equipment finance companies, specifically within the bank segment, have unfrozen and are actively investing in the equipment finance sector providing needed access to capital at more attractive rates.” David Normandin, CLFP, President and Chief Executive Officer, Wintrust Specialty Finance

Bank, Large Ticket
“Lower interest rates will ignite capex for smaller companies that have been on the sidelines for a few years and need to add or replace equipment for growth. Getting past the election should provide some clarity on the economic direction of the U.S., thus more capex investments can be made. Lastly, onshoring will continue to promote infrastructure investment which requires capex spending to execute.” Jeffry Elliott, CLFP, President, Huntington Equipment Finance

Captive, Small Ticket
“The Fed’s intent to lower interest rates combined with stabilizing of inflation will stimulate investment, spending and expansion.” Jim DeFrank, EVP and Chief Operating Officer, Isuzu Finance of America, Inc.

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University of North Texas G. Brint Ryan College of Business Partnering with CLFP Foundation and Equipment Leasing & Finance Foundation to Launch Commercial Equipment Finance Course

October 17, 2024—The Department of Finance, Insurance, Real Estate and Law (FIREL) of the G. Brint Ryan College of Business at the University of North Texas (UNT) has announced a partnership with the Certified Lease & Finance Professional Foundation and the Equipment Leasing & Finance Foundation to launch a new course on commercial equipment finance. The course, FINA 4700-Survey of Commercial Equipment Leasing & Finance, will begin in spring 2025.

This course will use The Certified Lease & Finance Professionals’ Handbook for the textbook, and will cover foundational concepts, origination topics, and operations and servicing areas. Upon successful completion, students will be awarded the Certified Lease & Finance Professional (CLFP) Student Certification.

The Equipment Leasing & Finance Foundation is providing financial support and resources, including academic scholarships, internship opportunities, and networking events. This partnership is a natural alignment with the Foundation’s Campus to Career academic outreach program created to raise awareness for student talent development and provide learning and connection opportunities through resources for both students and employers.

The program was developed by Michael P. Gallo, B.Fin., M.Fin., J.D., Lecturer Professor at FIREL and 35-year veteran of the industry having held positions in sales, management and legal, and is currently associated with Padfield & Stout, LLP. “This collaboration supports a comprehensive academic program in commercial equipment leasing and finance that bridges the gap between academia and industry, preparing the next generation of professionals,” Gallo said. “It creates a platform for students to gain real-world insights and hands-on experience, positioning them for successful careers.”

The program also provides direct access to top talent, enabling equipment finance companies to:

Engage with the program and students.
Identify future professionals with industry knowledge and CLFP Student Certification.
Benefit from students skilled in foundational concepts, origination, and operations.
Ensure a steady pipeline of qualified graduates ready to contribute to the industry’s success.

Future plans for the program include expanding to other colleges and universities across the country to facilitate wider access.

The G. Brint Ryan College of Business offers a special thanks to Kirk Phillips, President & CEO of Wintrust Commercial Finance, for his critical role in providing industry leadership and spearheading efforts to foster support for this groundbreaking program.

Companies can support the program by posting their open internship opportunities at the Equipment Leasing & Finance Foundation’s Internship Resources page: https://www.leasefoundation.org/campus-to-career/internship-resources-page/ . Others wishing to participate in the program can contact Professor Gallo at 972.358.4213, Michael.gallo@unt.edu

ABOUT University of North Texas G. Brint Ryan College of Business
As one of the largest business schools in the nation, the University of North Texas (UNT) G. Brint Ryan College of Business serves over 9,000 students and has been AACSB-accredited since 1961. UNT is ranked among the nation’s top-tier research universities as per the Carnegie Classifications. Partnerships at UNT’s Ryan College of Business strengthen programs while providing industries valuable connections to students. The blend of classroom instruction, practical experience, and financial incentives creates a dynamic learning environment. With the support of the Dallas economy, this course will boost students’ career prospects and contribute to industry growth. Learn more at https://cob.unt.edu/

ABOUT THE CLFP FOUNDATION
The CLFP Foundation is a certification institute for the leasing and finance industry. It promotes the highest standard of professionalism within the industry by providing an objective, rigorous, and comprehensive certification program. The CLFP designation identifies an individual as a knowledgeable professional to employers, clients, customers, and peers in the commercial equipment finance industry. There are Certified Lease & Finance Professionals and Associates located throughout the United States (including Puerto Rico), Canada, India, Pakistan, Africa, and Australia. For more information, visit http://www.CLFPFoundation.org.

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Equipment Finance Industry Confidence Up Again in September

No executives surveyed expect U.S. economic conditions to worsen over next six months

Washington, DC, September 19, 2024 – The Equipment Leasing & Finance Foundation (the Foundation) releases the September 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. Overall, confidence in the equipment finance market is 61.9, an increase from the August index of 58.4, and the highest level since January 2022. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1 trillion equipment finance sector.

When asked about the outlook for the future, MCI-EFI survey respondent Nancy Pistorio, President, Madison Capital, said, “Many firms, particularly small and medium-sized businesses, have been delaying equipment purchases, citing continued high interest rates and uncertainty about the economy amplified by the upcoming election. This ‘let’s wait and see what happens’ mindset has contributed to diminished demand for equipment financing. Assuming the Federal Reserve lowers rates this fall, and once the election is behind us, I think we will begin to see an increase in business volumes. Barring any prolonged adverse reaction from the financial markets to the election outcome, I anticipate a more robust December and first quarter 2025 for our industry.”

September 2024 Survey Results:
The overall MCI-EFI is 61.9, an increase from the August index of 58.4.

When asked to assess their business conditions over the next four months, 40% of the executives responding said they believe business conditions will improve over the next four months, an increase from 37.5% in August. 52% believe business conditions will remain the same over the next four months, up from 45.8% the previous month. 8% believe business conditions will worsen, down from 16.7% in August.
44% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 41.7% in August. 52% believe demand will “remain the same” during the same four-month time period, up from 37.5% the previous month. 4% believe demand will decline, a drop from 20.8% in August.
24% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, up from 20.8% in August. 76% of executives indicate they expect the “same” access to capital to fund business, up from 75% last month. None expect “less” access to capital, down from 4.2% the previous month.
When asked, 20% of the executives report they expect to hire more employees over the next four months, a slight decrease from 20.8% in August. 68% expect no change in headcount over the next four months, down from 70% last month. 12% expect to hire fewer employees, up from 8.3% in August.
None of the leadership evaluate the current U.S. economy as “excellent,” unchanged from the previous month. 96% evaluate the economy as “fair,” up from 91.7% in August, while 4% evaluate it as “poor,” down from 8.3% last month.
24% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, down from 37.5% in August. 76% indicate they believe the U.S. economy will “stay the same” over the next six months, a jump up from 41.7% last month. None believe economic conditions in the U.S. will worsen over the next six months, a decrease from 20.8% the previous month.
In September, 36% of respondents indicate they believe their company will increase spending on business development activities during the next six months, an increase from 33.3% the previous month. 56% believe there will be “no change” in business development spending, down from 62.5% in August. 8% believe there will be a decrease in spending, up from 4.2% last month.

September 2024 MCI-EFI Survey Comments from Industry Executive Leadership:

Bank, Small Ticket
“I am optimistic for 2024 and 2025 as opportunities are in solid supply if you have liquidity to fund and scale your balance sheet. While there are many examples of uncertainty to point to today, I find businesses are adapting and finding ways to win and it is an opportunity for us to adapt and grow with them. Even with solid liquidity, delinquency and portfolio performance are challenging for many, so credit discipline is required more now than over the last few years.” David Normandin, President and Chief Executive Officer, Wintrust Specialty Finance

Independent, Small Ticket
“There is still concern of the risk that the Fed will not be able to guide to a soft landing and inflation will remain sticky. Consumer debt and U.S. debt levels are unsustainable.” Mark Bonanno, President and COO, North Mill Equipment Finance

“Interest rates should begin to fall this month and the federal election is around the corner. We expect business activity will begin to improve soon.” James D. Jenks, CEO, Global Finance and Leasing Services, LLC

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Media Contact: Kelli Nienaber, knienaber@leasefoundation.org

New Foundation Study Examines Competitive Roles of Bank and Independent Lessors

Private Capital Involvement Expected to Increase

Washington, DC, September 18, 2024– In the wake of U.S. bank failures in spring 2023 many banks, which represent the largest share of new business volume among lessor types, pulled back from equipment finance activity.

A new report, “The Changing of the Guard: The Evolving Roles of Banks and Independents in Equipment Finance,” released by the Equipment Leasing & Finance Foundation (Foundation) evaluates the current and expected competitive landscape for both banks and independent equipment finance companies in the $1 trillion equipment finance industry. It also assesses the increasing importance of the asset management sector in equipment finance, which includes private equity (PE) firms, credit funds, business development companies, and family offices.

The report was commissioned by the Foundation and prepared by management consulting firm FIC Advisors, Inc. The findings are based upon multiple interviews with equipment finance leaders, a review of recent survey results and other research, as well as FIC Advisors’ client experience.

The six key summary takeaways derived from the report are:

Many banks appear hesitant about their commitment to equipment finance and are reducing their exposure. At the same time, a smaller number of banks are beginning to reengage and grow equipment finance assets.
Banks continue to face deposit shrinkage.
Independents are in a stronger competitive position than they have been for many years; however, access to funding and capital, critical to their success, are available only to the stronger performers.
Private funds, in particular PE firms, are playing an increasing role, primarily with Independents.
Credit quality has declined from previous years.
The current M&A market shows little activity. Analysts do not expect a rebound until at least 2025.

“We have seen dramatic shifts in the industry over the last year as banks have reduced their equipment finance exposure, creating an opening for independent providers to grow their market share,” said Valerie Gerard, Foundation Research Committee Chair and Co-CEO of The Alta Group. “This study provides a comprehensive examination of how banks and independents are navigating market volatility and opportunities in their respective sectors, emerging trends and likely operating options for these groups over the next few years. The insights are invaluable to equipment finance practitioners for their business strategy and decision-making, as well as advisors and vendors to the industry.”

Download the full report at https://www.store.leasefoundation.org/cvweb/cgi-bin/msascartdll.dll/ProductInfo?productcd=BankIndependent2024.

All Foundation studies are available for free download from the Foundation’s online library at http://store.leasefoundation.org/.

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Media contact: Kelli Nienaber, knienaber@leasefoundation.org

Foundation 2024 Industry Future Council Report Provides Guidance for Innovation and Experimentation in Equipment Finance

Washington, DC, September 12, 2024–Advancing its mission to be the equipment finance industry’s “eye on the future,” the Equipment Leasing & Finance Foundation (Foundation) releases the “2024 Industry Future Council (IFC) Report: Promoting Innovation and Experimentation in Equipment Finance.” The study focuses on the large, growing role of technology and innovation in the equipment finance industry, and the risks and opportunities associated with them over the next three to five years.

The facilitated discussions of this year’s IFC participants identified three key areas to consider in developing the strategy for a company’s optimal level of technology deployment and innovation:

Customer preferences for personalized engagement – The study reveals that 80% of customers say that the experience a company provides is as important as the actual products and services they provide, and 78% expect companies to adapt to their changing needs and preferences.
Employee experimentation with new technologies in a structured, coordinated manner – Equipment finance firms must be willing to experiment and innovate to stay competitive, and need a defined innovation strategy that prioritizes experimentation that’s not at the expense of a firm’s core strengths.
Cybersecurity risk recognition and management – Building on previous work commissioned by the Foundation on cybersecurity practices and combatting fraud, the IFC concluded that an effective cybersecurity posture requires a combination of people, processes, and technologies.

The study presents three main sections to guide organizations in addressing these issues:

Section 1 describes how equipment finance firms are using technology to interact with their customers and clients more effectively, and promising tools and practices currently used by some IFC member companies.
Section 2 discusses the importance of experimenting with new technologies using the “Innovation Curve” as a conceptual framework, and provides the IFC’s views on generative artificial intelligence and blockchain, two hot technologies receiving outsized attention.
Section 3 summarizes vulnerabilities businesses may face with new technologies, and describes potential strategies for defending organizations against cybersecurity threats.

“While the equipment finance industry has traditionally been slow to adopt cutting-edge technology, our future success relies on our ability to embrace new advancements,” said Zack Marsh, Chair of the Equipment Leasing & Finance Foundation and SVP, Accounting and Analysis, AP Equipment Financing. “The Foundation hopes that the IFC’s work influences equipment finance leaders to develop their own innovation strategies that lead to increased experimentation with emerging technologies so the industry is better positioned to thrive in the years ahead.”

This year’s IFC report was written by Keybridge, an economics and public policy research firm selected to facilitate the 2024 IFC. The IFC is comprised of a cross-section of equipment finance industry executives who participated in a full group brainstorming session and four breakout team sessions to further facilitate discussion.

The Foundation is grateful to the 2024 IFC sponsors, Equifax, LTi Technology Solutions, and Solifi.

The IFC Report is available for free download at https://bit.ly/ELFFIFC.

All Foundation studies are available for free download from the Foundation’s online library at http://store.leasefoundation.org/.

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Media contact: Kelli Nienaber, knienaber@leasefoundation.org