ELFA: Equipment financing sees the largest increase in 2 years

08/23/2010 | Wall Street Journal, The · Reuters

Financing for companies' equipment purchases increased 16.7% last month compared with July 2009, the largest uptick in two years, according to ELFA's monthly survey. Respondents said they financed $5.6 billion in equipment, compared with $4.8 billion in July 2009. Other metrics from the survey bode well for the industry: 3.45% of borrowers were delinquent 30 days or more on their credit, compared with 3.9% last year, while lenders considered 1.5% of receivables as unlikely to be recovered, compared with 1.67% last year. "Financing demand appears to be picking up," said ELFA President William Sutton. "It appears we're heading in the right direction, and our members remain cautiously optimistic that this trend will continue."

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Wall Street Journal, The · Reuters