Category Archives: Leasing Industry

May 16, 2013 · 2:20 pm

5 trend-spotting sites that will help your business gauge 2013

Every once in a while, it’s nice to take a breath of fresh air after being cooped up in the office, right? In the same way, it’s nice to try out some fresh sources of information after you’ve been listening to the news media and other outlets bemoan the economy’s uncertainty and Washington’s political brinkmanship  Admittedly, these are challenging times for many US businesses. Take a look at the following articles that we thought may help you with your organization’s financial plans in 2013. We hope you find a refreshing new piece of information that you can use. As always, please call 512-458-1300 any time to discuss what these findings may mean for your business.  

 

1. Check the ELFA website each month for a snapshot of the Leasing and Finance Industry as a whole. When demand goes up for capital asset finance, expect it to trickle in to other areas of the economy in the subsequent months. When this index goes down, the next coming months could be slower. “The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $725 billion equipment finance sector, showed their overall new business volume for March was $6.8 billion, flat compared to volume in March 2012. Month-over-month, new business volume was up 45 percent from February. Year to date, cumulative new business volume was up three percent compared to 2012…” Learn more here

 
2. Check the Equipment Leasing and Finance Foundation website each month for a snapshot of the current confidence level of US business owners, CFOs, and other stakeholders. This could be another way to anticipate future growth and plan accordingly. “The overall MCI-EFI is 54.0, a decrease from the March index of 58.0. When asked to assess their business conditions over the next four months, 6.3% of executives responding said they believe business conditions will improve over the next four months, down from 21.9% in March. 84.4% of respondents believe business conditions will remain the same over the next four months, up from 71.9% in March. 9.4% believe business conditions will worsen, up from 6.3% the previous month…” Learn more here

 
3. MarketWatch, a site now owned by The Wall Street Journal, always has great insights. It published the article by Bill Bischoff called “5 overlooked tax breaks for small businesses” back in February. While these tax deductions are widely used in some firms, others may still be leaving some money on Uncle Sam’s table. “Last month’s fiscal-cliff legislation included lots of tax provisions. Media attention has focused heavily on changes that affect individuals. But the new law also provides some valuable tax-saving breaks for businesses. Here’s the most important stuff to know for your outfit’s 2013 tax year…” Learn more here

 

4. The Equipment Finance Advisor intends to help business owners and CFOs better their businesses and keep a keen eye on the market. The article “Equipment Finance in 2013 … Industry Leaders Step Cautiously, Yet Remain Optimistic” has commentary from four executives in the finance industry and may help you gain valuable insight for your business. “For its first ever industry leader roundtable discussion, Equipment Finance Advisor assembled four notable industry leaders to give us their take on how equipment finance is faring so far in 2013. Here, Adam Warner, Tom Jaschik, Rick Remiker and Jim McGrane speak to the issues and opportunities as they see them at the close of the first quarter. And while there are no big surprises, important themes, such as the continuing impasse in Washington, margin compression and lease accounting convergence, begin to emerge.” Learn more here

 

5. The site CFO.com continually provides useful information. This February article by David Rosenbaum covers many angles of the effects of the sequestration on businesses in 2013. Long story short, banks and lenders across the US may be tightening up their purse strings, so having alternative financial sources is essential to success in today’s financial environment. “Sequestration: Growth Juice for Alternative Lenders? As politicians posture, small business faces a looming working capital crisis. But it may be a crisis with a hidden benefit: the emergence of a greater variety of ways to get access to cash…” Learn more here

 

Thanks for reading.

Mike Wright, OneWorld Business Finance

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August 21, 2012 · 10:11 am

Equipment Finance Industry Confidence Improved

Washington, DC, July 23, 2012 –- The Equipment Leasing & Finance Foundation (the Foundation) releases the July 2012 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $628 billion equipment finance sector. Overall, confidence in the equipment finance market is 51.5, up from the June index of 48.5, and reflects continuing concern over external economic factors and regulatory and political uncertainty.

When asked about the outlook for the future, MCI survey respondent Russell D. Nelson, President, Farm Credit Leasing Services Corporation, said, “Continued volatility/uncertainty at home and abroad may inhibit planned/needed capital expenditures during the next six months, but low interest rates and tax incentives will enable our industry to generate modest increases in asset volume and profitability through the remainder of 2012.”  He added, “Improving credit quality, stable earnings, and demand for innovative/creative lease and loan products should position our industry for improved growth in 2013 and beyond.”

July 2012 Survey Results:

The overall MCI-EFI is 51.5, up from the June index of 48.5.

  • When asked to assess their business conditions over the next four months, 6.5% of executives responding said they believe business conditions will improve over the next four months, down from 8.1% in June. 71% of respondents believe business conditions will remain the same over the next four months, up from 64.9% in June. 22.6% believe business conditions will worsen, down from 27% the previous month.
  • 12.9% of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, an increase from 8.1% in June. 71% believe demand will “remain the same” during the same four-month time period, up from 64.9% the previous month. 16.1% believe demand will decline, down from 27% in June.
  • 19.4% of executives expect more access to capital to fund equipment acquisitions over the next four months, up from 10.8% in June. 77.4% of survey respondents indicate they expect the “same” access to capital to fund business, a decrease from 86.5% the previous month. 3.2% survey respondents expect “less” access to capital, up from 2.7% who expected less access in June.
  • When asked, 35.5% of the executives reported they expect to hire more employees over the next four months, up from 24.3% in June. 64.5% expect no change in headcount over the next four months, virtually unchanged from 64.9% last month, while no one expects fewer employees, down from 10.8% in June.
  • 71% of the leadership evaluates the current U.S. economy as “fair,” down from 78.4% last month. 29% rate it as “poor,” up from 21.6% in June.
  • 9.7% of survey respondents believe that U.S. economic conditions will get “better” over the next six months, up from 8.1% in June. 71% of survey respondents indicate they believe the U.S. economy will “stay the same” over the next six months, up from 64.9% in June. 19.4% believe economic conditions in the U.S. will worsen over the next six months, a decrease from 27% who believed so last month.
  • In July, 25.8% of respondents indicate they believe their company will increase spending on business development activities during the next six months, down from 29.7% in June. 71% believe there will be “no change” in business development spending, up slightly from 70.3% last month, and 3.2% believe there will be a decrease in spending, up from no one who believed so last month.

 How may I access the MCI-EFI?

Survey results are posted on the Foundation website,
http://www.leasefoundation.org/IndRsrcs/MCI/
, included in the Foundation Forecast newsletter and included in press releases. Survey respondent demographics and additional information about the MCI are also available at the link above.

 

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December 2, 2011 · 12:28 pm

December Equipment or Software Finance Rates

Thanks for checking back in on the OneWorld Business Finance blog. Here is a glimpse into today’s market rates for organizations acquiring essential assets. For an example of how to calculate a monthly payment, check out our September post here:
http://equipmentfinancejournal.wordpress.com/2011/08/30/equipment-or-software-leasing-and-finance-for-vendors/
.

Equipment or Software Leasing or Financing Rates

Lease Rate Factors for December

Investment Grade credits are usually Fortune 500 or 1000 companies that have Investment Grade public debt ratings (at least BBB or Baa2), and these organizations qualify for our best rates when the transaction or line of credit is over $1,000,000. Class “A” credit profiles are usually mid-size organizations, and still have strong revenues, profitability, and balance sheets. Class “B” profiles do not have investment grade debt due to a slightly higher credit risk associated with business size, leverage, time-in-business, customer concentration, or other challenges. Our “App-Only” programs allow for a quick and easy credit decision based solely on the corporate credit and sometimes personal credit of the businesses owners.

These Standard Middle Market Rates are intended to be guidelines for discussion purposes only and are subject to change higher or lower depending upon a review of the credit profile of each lessee. Also, contact your representative at OneSource in order to discuss the multiple end-of-term options available, including, but not limited to, $1out, Fair-Market-Value, Purchase-or-Renewal, or Equipment Finance Agreement.

As always, please contact your OneWorld representative with questions or ideas. Just call us at (512)458-1300, and ask for Mike Wright at extension 234 or Mike Moran at extension 232.

Thanks again, and Happy Holidays!

OneWorld Business Finance Cooperative

9420 Research Blvd, Ste 310

Austin, TX, 78759

www.oneworldbusinessfinance.com

www.onesourcefinancial.com

Send an email to: finance@oneworldbusinessfinance.com

Click here to apply for an equipment or software lease or loan now:
http://www.tfaforms.com/170272

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September 29, 2011 · 12:26 pm

Oct. 2011 Financing or Leasing Rates

Thanks for checking in on the October 2011 rate factors.  Our goal is that by quoting a monthly payment along with a cash option, our vendors can increase sales by an extra 10% to 20% in this last quarter.

Speaking of the fourth quarter, you may find it useful to direct customers to the previous post about Section 179 and Bonus Depreciation.  These tax programs won’t last forever!

As always, feel free to call your OneSource or OneWorld representative with questions, comments, opportunities, or just to catch up.  We look forward to building more business with you.

24

36

48

60

Investment Grade (over $1 million)

0.04347

0.02957

0.02263

0.01847

A

0.04426

0.03025

0.02319

0.01892

B

0.04494

0.03093

0.02388

0.01962

App-only (under $100k)

0.04592

0.03169

0.02465

0.02047

Remember, these Standard Middle Market Rates are intended to be guidelines for discussion purposes only and are subject to change higher or lower depending upon a review of the credit profile of each lessee.  Also, contact your representative at OneSource in order to discuss the multiple products available, including, but not limited to, $1out, Fair-Market-Value, Purchase-or-Renewal, or Equipment Finance Agreement.

***Finally, thanks for all the great feedback on the September rates.  We received a number of requests for Fair-Market-Value quotes this month, and as you may well know FMV rates are going to be lower than the standard $1out factors we publish.  Call any time for help quoting an FMV option to your customers.***

Mike Wright (x234) and Mike Moran (x232)

OneSource Financial Corp.

a OneWorld Business Finance Co-Op Member

9420 Research Blvd., Suite 310

Austin, TX 78759

512.458.1300

512.372.9156 Fax

www.onesourcefinancial.com

www.oneworldbusinessfinance.com

Apply Now

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September 16, 2011 · 2:57 pm

Tax Benefits Through Sect 179 and Bonus Depreciation

In our July 13th posting “Why choose to finance or lease assets?” we described a few reasons why business owners, CFOs, or other stakeholders finance asset purchases.  As we approach the fourth quarter of 2011, certain tax advantages start to make more and more sense, especially for our small and medium sized clients.  Through the Section 179 and Bonus Depreciation incentive programs, you can significantly reduce your tax liability this year.

Section 179 Deduction:

Use this optional deduction to deduct 100% of the purchase price of essential equipment or software that is placed in to service in 2011.  If you choose not to elect the Section 179 deduction, the assets will be depreciated over a number of years according to standard tax law.  Section 179 can apply for both new and used equipment or software.

Bonus Depreciation:

Use the Bonus Depreciation program to deduct 100% of an asset’s cost if it is placed into service in 2011, or 50% of the asset cost if it is placed into service in 2012.  This program is only available for new equipment.  Like the Section 179 deduction, the alternative to using Bonus Depreciation is the typical depreciation of equipment over a longer period of time.

To learn more, visit the IRS page here:  
http://www.irs.gov/publications/p946/ch02.html
.

For a simpler explanation, try checking out the Wikipedia page here: 
http://en.wikipedia.org/wiki/Section_179_depreciation_deduction
.

If you would like to discuss how OneSource can help you plan for taxes this year, call me any time at 512-458-1300, ext 234.  If you have an urgent equipment or software financing need, send us your request online by clicking Apply Now.

As always, please feel free to comment below with your questions and ideas, and thank you for reading.

Mike Wright

512-458-1300, ext234

mwright@onesourcefinancial.com

www.onesourcefinancial.com

www.oneworldbusinessfinance.com


http://www.linkedin.com/in/mikewwright

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September 6, 2011 · 8:51 am

Reputation of Your Finance Company

The equipment leasing and finance industry is for the large part self-regulated.  What does this mean for purchasers of essential equipment and software?  It means that choosing which finance firm your company works with requires a bit of leg-work on your part to make sure you aren’t working with low-integrity companies.  As business owners, you want to protect your investment and see your organization succeed.  As a CFO, Controller, or other purchaser, you do not want to be responsible for associating your firm with less-than-reputable companies, as these relationships always end in pain and can permanently damage your firm and your professional reputation.

Now that I’ve painted the doom and gloom, there is some good news.  We are all fortunate enough to live in the age of information, which means we have more data about our associates available at our fingertips than ever before.  Today’s economic environment is certain to sift the wheat from the chaff and clean out low-integrity firms because stakeholders do not have to make decisions blindly.

To find out more about the reputation of the leasing or financing company that you are considering, first just run a  Google search on the name, and include your keywords of concern (try review, experience, story, customer, client, fraud, scam, etc).

Also, use the following well-established sources for more information about the reputation of the company:

The Monitor daily publishes online and in print and provides a vast expanse of technical knowledge for leasing and finance professionals.  It also publishes regular rankings of leasing and finance firms by assets, market share, and other metrics, and comments about fraudulent practices.  Check out the site here: 
http://www.monitordaily.com/

The Better Business Bureau is one of the most common and useful sources.  Search by name for the company you are considering working with.  Also, search the company owners names to make sure the same owners haven’t simply shut down one entity and began another to avoid bad ratings.  
http://www.bbb.org/

While it is more geared toward consumer complaints, you may also find some articles about companies that call on you here: 
http://www.ripoffreport.com
  (I hope not, but it is possible!)

Not-for-profit organizations like the Equipment Leasing and Finance Association and National Equipment Finance Association also require members to maintain certain ethical standards, which can provide added assurance that you are working with good companies.  Visit the ELFA website here: 
http://www.elfaonline.org/
, and the NEFA site here: 
http://www.nefassociation.org/
.

I hope this information guides your firm to making more informed decisions for its ongoing financial health.  Please post any additional thoughts or links to the sites you use.  Thanks for reading.

Mike Wright

512-458-1300, ext234

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August 17, 2011 · 8:44 am

Equipment Finance or Leasing with Independent Community Banks

In our August 9th blog post Market Commentary from Jeff Stibel, CEO of D&B Credibility Corp,  we expressed the need for independent sources of capital to help fund small and medium sized businesses.

After an intense vetting process, in March of 2011 OneWorld Business Finance proudly became a Preferred Service Provider to the Independent Community Bankers of America.  Read more about the partnership with community banks on the World Leasing News website: ICBA Chooses OneWorld Business Finance for Equipment Leasing Finance.

To hear more about how capital is being deployed to local businesses today, visit the ICBA website:

“The Independent Community Bankers of America, the nation’s voice for community banks, represents nearly 5,000 community banks of all sizes and charter types throughout the United States and is dedicated exclusively to representing the interests of the community banking industry and the communities and customers we serve.

With nearly 5,000 members, representing more than 23,000 locations nationwide and employing more than 280,000 Americans, ICBA members hold more than $1 trillion in assets, $900 billion in deposits, and $700 billion in loans to consumers, small businesses and the agricultural community.

Whether located in small towns, suburbia or big-city neighborhoods, community banks improve our towns and cities by funding small businesses and using local dollars to help families purchase homes, finance college and build financial security.”

OneWorld is honored to be awarded the distinction of Preferred Service Provider to this admirable group of lenders.

Do you have questions or comments?  Please feel free to post here, or call me any time to discuss.

-Mike Wright

512-458-1300, x234

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August 9, 2011 · 8:24 am

Market Commentary from Jeff Stibel, CEO of D&B Credibility Corp

As a business owner acquiring assets, a lender providing the capital, or a vendor of essential assets or services, it is important to have multiple perspectives on the market outlook.  Some of the best online content out there right now is coming from Jeff Stibel, CEO of Dun and Bradstreet Credibility Corp.  I recommend checking out Jeff’s last couple of posts on the Harvard Business Review Blog Network.  No subscription is necessary for a few reads, and Jeff has a very clear way of putting things that can appeal to almost any reader.  In his latest post, Jeff answers the question Does Standard & Poor’s Deserve a Downgrade?

In Jeff’s July 11th post, Why Bank Bailouts Haven’t Led to Jobs, he writes that “job growth, as it turns out, is largely driven by small business.”  Because of this, “we must go back to the drawing board and figure out how to get cheap and convenient capital back into the hands of small business owners.”

Comments like the ones Jeff posts make it apparent that we are all in this together.  Originators in the equipment finance and leasing sector are on the front lines as far as business confidence is concerned.  A business invests in essential assets when it is confident of its ability to generate new earnings or produce ongoing earnings related to the capital outlay or obligation.  Even in today’s tumultuous lending environment, there are still good, healthy reasons to invest in your company’s future.  While national or regional banks may still have restrictive lending policies, there are independent sources of capital out there that are willing and able to help small and medium businesses across the nation meet financial goals.

As a business owner that uses equipment financing or leasing, or a vendor or other stakeholder in the industry, what are your thoughts on Jeff’s comments in his latest blog?  Comment below, or call me some time to discuss – it would be great to have your perspective!

Thanks for reading.

-Mike

512-458-1300 x234

mwright@onesourcefinancial.com

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July 22, 2011 · 4:30 pm

Equipment Leasing Confidence as a Leading Indicator

Today, the ELFA (Equipment Leasing and Finance Association) posted its monthly confidence numbers, which you can access here: Equipment Finance Industry Confidence Improves in July 
http://dld.bz/ahBwM
.  No matter whether you buy, sell, or finance equipment in your regular course of business, this data is useful to your understanding of today’s economic outlook.

…Why?

…because when a business decides to take on a monthly obligation in order to acquire essential assets like equipment or software, ELFA tracks it through a diverse survey.  This business, by purchasing assets for replacement or expansion, is exemplifying its  ability to generate new sales or continue at current levels.  In this sense, the ELFA monthly confidence index is a good leading indicator of where our economy is headed in the next couple of quarters.

Or, as ELFA puts it, “Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment and durables, and invest at prevailing prices. When confidence decreases, spending and risk-taking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising.”

The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that provides vision for the equipment leasing and finance industry through future-focused information and research. Primarily funded through donations, the Foundation is the only organization dedicated to future-oriented, in-depth, independent research for the leasing industry. Visit the Foundation online at 
http://www.LeaseFoundation.org
.

You can also follow ELFA here:

Twitter @LeaseFoundation

Facebook: Equipment Leasing & Finance Foundation

Linked In: 
http://www.linkedin.com/groups?gid=89692

Did you find this information useful?  Either way, we would love to hear from you.  Post your comments below or call me at 512-458-1300, ext234.  Thanks for checking us out!

-Mike

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