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Lenders: Low Demand Killing Equipment Financing

Tightfistedness isn't the cause of the downturn in leasing activity, according to equipment-financing executives. It's the economy, stupid.

November 2, 2009

The steep falloff in new equipment-lease deals stems from a lack of customer demand and not from tight underwriting, according to most respondents to a survey of leasing companies.

Almost 80% of the participants in a survey of a cross-section of 25 equipment leasing and financing companies that saw declines in business volume in September "said that declining customer demand and not [tightened] credit underwriting standards or spreads were the number-one reason" for the drop-off, Ralph Petta, interim president of the Equipment Leasing and Finance Assn., said in a conference call late last week. Read more...

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