The Equipment Leasing & Finance Foundation (the Foundation) releases the August 2020 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). 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 is 48.4, an increase from the July index of 45.3.
The Foundation also releases 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 from August 3-14, results show that 89% of equipment finance companies have offered payment deferrals, including extensions, modifications or restructuring. 76% of companies expect that the default rate will be greater in 2020 than in 2019; 19% expect it to be the same, and 5% expect it to be lower. A majority (81%) of companies have not furloughed or laid off employees.
When asked about the outlook for the future, MCI-EFI survey respondent Brian Madison, president, TrinityRail Leasing & Management Services, says, “To date, receivables have held up surprisingly well, which seems to indicate businesses were relatively healthy entering the crisis. The biggest concern is continued limited demand given the amount of uncertainty related to the spread of COVID-19.”
For more information, visit: www.leasefoundation.org
