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What Equipment Financing Looks Like Today

Today, almost 8 out of 10 US enterprises use equipment leasing and financing to purchase production assets, which is a consequence of the main trend of last year, still leaving its mark – pandemia. But what are other trends in the acquisition of equipment now? Or what else do we have to find out in 2022?

  • Continuing the influence of adaptation to new mechanisms of remote or hybrid work on the demand for new types of equipment and software.
  • More attention to digitization and data. Introduction of more reliable cybersecurity protocols to obtain competitive advantages in the analysis of customer behavior and market dynamics.
  • Continuation of positive growth in capital costs. It means an increase in investment in equipment and software to 4.6%.
    More than half of the investment in the equipment and software are waiting for financing this year. It will play a significant role in economic growth.
  • Obstacles in the supply chain in addition to inflationary pressure. Also, several planned increases in interest rates in 2022 were announced with unpredictable influence on demand or supply.
  • Infrastructure spending law enacted by Congress, meaning businesses investing in related equipment verticals, and federal and state initiatives. That will create more red tape for lenders along with associated costs to borrowers.

We recommend keeping also an eye on the ongoing labor shortages, midterm elections and “Build Back Better” spending package in Washington that could impact the equipment acquisition strategies.

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