ELFF Study Prepares Industry for High-Interest Rate, Inflationary Economy

In response to a decade-long low-interest rate, low-inflation setting, the Equipment Leasing & Finance Foundation released a new study, “On the Rise: How Inflationary Pressures and Rising Interest Rates Could Impact the Equipment Finance Industry,” to prepare equipment finance firms for the possibility of a more rapid rise in inflation and interest rates in the near future.

The study explains potential impacts to customer demand, portfolio performance, spreads and the propensity to finance.

The study, commissioned by the foundation and prepared by Keybridge, applies principles of economic theory and data analysis to business strategy concepts relevant to the equipment finance industry. Designed to be a practical guide for equipment finance professional, the report:

  • Explains why a rise in both inflation and interest rates is expected in the near future
  • Describes different scenarios for how these changes could occur
  • Illustrates how each scenario is likely to impact the equipment finance industry
  • Provides signposts to help identify which scenario is occurring
  • Offers advice on how individual firms should consider adjusting their business strategies and tactics depending on which scenario occurs.

This study functions as the second volume to the Applied Economics Handbook, which will be available later this year.

All foundation studies are available for free download from its online library.

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