Leasing Equipment Rises
Perhaps due to uncertainty about U.S. economy, businesses are embracing equipment leasing and financing over outright purchasing. According to a July 25 report from the Equipment Leasing and Finance Association, in June, equipment leasing and financing–across all industry sectors–rose 29 percent over May 2012. It was one of the best months ''since 2008,'' according to the association.
''Capital financing is really cheap right now, companies can borrow money and get a high rate of return,'' said Bill Choi, vice president of research and industry services at the Equipment Leasing and Finance Association.
''Many companies are choosing to use leasing and financing options in order to preserve capital,'' said Joseph Pucciarelli, vice president and IT executive advisor at IDC. In uncertain times, companies tend to batten down their balance sheets, he said.
According to recent LC/DBM survey, equipment rental businesses are booming, with some reporting that they are at or above pre-recession levels.