Most businesses require equipment in order to operate and, in many cases, make a profit. Equipment leasing and financing help all types and sizes of commercial businesses in the United States to acquire the equipment they need to conduct their business operations. Each business has to make the best procurement choice based on numerous factors such as cash flow, balance sheet impact and available credit lines. Equipment finance offers flexible choices that can work with the diverse objectives of most businesses.
Equipment finance companies are responsible for financing a substantial portion of the nation's capital expenditure budget through a multitude of financial products and strategies and are engaged in originations and primary and secondary market financing activities.
The Economic Contribution of the Equipment Finance Industry
Equipment finance not only contributes to businesses’ success, but to U.S. economic growth, manufacturing and jobs. Each year American businesses, nonprofits and government agencies invest over $1.2 trillion in capital goods and software (excluding real estate). Some 57, or $725 billion, is financed through loans, leases and other financial instruments. America’s equipment finance companies are the source of such financing, providing access to capital. Equipment finance companies also finance the export of U.S. manufactured products abroad.
ELFA members finance the acquisition of all types of capital equipment and software including:
- Manufacturing and mining machinery and equipment
- Vessels and containers
- Construction and off-road equipment
- Medical technology and equipment
- Commercial and corporate aircraft
- Rail cars and rolling stock
- Trucks and transportation equipment
- Business, retail and office equipment
- IT equipment and software
MLFI-25: Monthly Leasing and Finance Index
The Equipment Leasing and Finance Association's (ELFA) Monthly Leasing and Finance Index (MLFI-25) reports on equipment finance activity such as New Business Volume, Aging of Receivables, Net Investment at Risk, Average Losses, Credit Approval Ratios, and Total Number of Employees.