The Equipment Leasing & Finance Foundation released the June 2020 Monthly Confidence Index for the Equipment Finance Industry on June 18. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market increased to 45.8, up from the May index of 25.8.
The Foundation also released highlights of the COVID-19 Impact Survey of the Equipment Finance Industry, a monthly survey of industry leaders designed to track the impact of the coronavirus pandemic on the equipment finance industry. From 98 survey responses collected June 1–11, results show that 92% of equipment finance companies have offered payment deferrals. Eighty-two percent of companies expect that the default rate will be greater in 2020 than in 2019. A majority (81%) of companies have not furloughed or laid off employees.
When asked about the outlook for the future, MCI-EFI survey respondent Daniel Krajewski, President and CEO, Sertant Capital, LLC, said, “Despite the reduction in overall demand, the market size still remains extensive. We continue to find opportunity and have seen an uptick in application activity. We do have continued concern over the political environment and the divide that continues to exist in Washington.”
