PRZOOM - /newswire/ -
Los Angeles, CA, United States, 2013/08/21 - Taycor Financial takes a look at the recently released Monthly Confidence Index of the Equipment Finance Industry - Taycor.com.
The August 2013 MCI-EFI (Monthly Confidence Index for the Equipment Finance Industry) revealed that the confidence in the equipment finance market increased from July’s index of 59.4 to 61 this past month. Even in the face of economic distress, optimism for the industry’s improvement continues on and participants remain assured that business conditions will progress, or at the least remain the same over the next few months.
In the midst of the MCI-EFI release, Taycor Financial conducted its own research and study on the matter. The company distributed a similar survey to its customer base asking about expectations in equipment finance for the future and found that its results differed slightly from the MCI-EFI. The main cause of the fluctuations in numbers between the two surveys is the obvious difference in respondent demographics. While the MCI-EFI covered all segments of the market including all banks, financial service and independent companies, Taycor focused on its lenders and customers it serves, particularly businesses in the medical, manufacturing, and IT industries to name only a few. (For an extended list of industries that Taycor used for their study, visit taycorfinancial.com). Although percentages differed from the MCI-EFI survey, the end results for both surveys turned out to be the same. Both surveys showed an increase in optimism for the equipment finance industry’s progress in the future.
Below is a brief summary of the August 2013 MCI-EFI Survey Results:
• Assessment of business conditions over the next 4 months:
o32.4% believe conditions will improve (25% in July)
o67.6% believe business conditions will remain the same (71.9% in July)
oNo one believes business conditions will worsen (3.1% in July)
• Assessment of demand for leases and loans to fund capital expenditures over the next 4 months:
o23.5% believe demand will increase (15.6% in July)
o76.5% believe demand will remain the same (81.3% in July)
oNo one believes demand will decline (3.1% in July)
• Assessment of access to capital to fund equipment acquisitions over the next 4 months:
o20.6% expect more access to capital (21.9% in July)
o79.4% expect the same access to capital (unchanged in July)
oNo one expects less access to capital (unchanged in July)
• Assessment of employment over the next 4 months:
o29.4% expect to hire more employees (25% in July)
o64.7% expect no change (68.8% in July)
o5.9% expect fewer employees (6.3% in July)
• Evaluation of the current U.S. economy:
o91.2% evaluates the economy as fair (90.6% in July)
o8.8% evaluates the economy as poor (9.4% in July)
• Assessment of U.S. economic conditions over the next 6 months:
o26.5% believe the economic conditions will get better (34.4% in July)
o70.6% believe the economic conditions will stay the same (62.5% in July)
o2.9% believe economic conditions will worsen (3.1% in July)
• Assessment of spending on business development activities over the next 6 months:
o29.4% believe their spending will increase (31.3% in July)
o70.6% believe their spending will not change (68.8% in July)
oNo one believes there will be a decrease in spending (unchanged in July)
Regardless of the market segment represented, respondents have differing but improving points of view on the future outlook for the industry. Although Taycor Financial remains optimistic and customers seem to follow the same attitude, the company recognizes the increase in competition and the need to consistently raise the bar for credit worthiness and rates. Demand for equipment financing has remained very strong considering the current lack of economic growth and sources are more plentiful, however it seems too soon to tell how substantial sustained of a growth will occur. The overall outlook continues to remain positive so we’ll see what pans out in the final quarter.
About Taycor Financial
Founded in 1997, with offices in Los Angeles CA and Boston MA, Taycor Financial (taycor.com) has joined the ranks of America’s top businesses, establishing itself as one of the premier equipment financing companies in the U.S. Taycor is also one of the most rapidly growing; having made the “Inc. 500” list of America’s fastest growing private companies. For more information on equipment leasing or financing, to get an Instant Quote, or explore career opportunities visit the website or call (800) 322-9738.