The Equipment Leasing & Finance Foundation released the results of its second quarterly COVID-19 Impact and Recovery Survey, which reveal equipment finance companies’ staffing performance, work-from-home expectations and portfolio metrics, including deferrals, defaults and originations. The COVID-19 Impact and Recovery Survey is designed to reflect longer-term effects of the pandemic’s impact on equipment finance companies going forward.
Among the survey highlights:
Staffing:
Work from Home (WFH):
Deferrals:
Defaults:
Originations:
“The data in the COVID-19 Impact and Recovery Survey provide valuable insights of industry performance by lender type and ticket size for companies to gauge their own results,” Tom Ware, Foundation trustee and research committee chair, said. “Overall, the equipment finance industry appears to be coming through the pandemic stronger than ever, as indicated by metrics including expanding portfolios, positive portfolio performance and increases in new hires.”
COVID-19 Impact and Recovery Survey Comments from Industry Executive Leadership:
Bank, Small Ticket
“In the short term, the world-wide economy is recovering from the global pandemic of COVID-19. This means confidence in the stability of the markets is slowly recovering as supply chains slowly find a new path to stability. This directly affects the supply of commercial assets and their values. I think we will continue under these conditions through at least the end of 2021. Mid-term I think we will see pent-up demand released as product becomes available. Long-term, our industry will continue to adapt to new technologies, regulation, employee desires and customer needs to thrive. I believe the best is in front of us if we continue to innovate with broad vision and courage,” David Normandin, CLFP, president and CEO, Wintrust Specialty Finance, said
Independent, Small Ticket
“While the pandemic negatively impacted equipment finance originations in many market segments, as we begin to emerge from COVID restrictions and economic uncertainty, many businesses will be feeling more confident about capital spending and taking on additional debt. This should result in a notable increase in demand for our industry’s products and services over the next 18 months,” Nancy Pistorio, president, Madison Capital, said
“I see some slowdown as companies are assessing their needs and trying to determine their office space needs with employees now working out of office,” Steven Geller, manager, Leasing Solutions, said.
Bank, Middle Ticket
“Going forward I see our segment growing in the near and long-term future. I think near term we will continue to grapple with supply chain delays, but the need for financing will stay constant,” Marci Slagle, CLFP, president, BankFinancial, said.
Survey responses were collected from 64 equipment finance company executives from July 1-29, 2021. Results are available online. All Foundation studies are available for free download from the Foundation’s online library.
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