Economic Contribution of the Equipment Finance Industry


Industry Overview

Most businesses require equipment in order to operate and 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.

Economic Contribution of the Equipment Finance Industry

Equipment finance not only contributes to businesses’ success, but to U.S. economic growth, manufacturing and jobs. Nearly 8 in 10 U.S. companies (79%) use some form of financing when acquiring equipment, including loans, leases and lines of credit (excluding credit cards).

In 2019, a projected $1.8 trillion will be invested by U.S. businesses, nonprofits and government agencies in plant, equipment and software. Approximately 50%, or $900 billion of that investment, will be financed through loans, leases and lines of credit.  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.

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