Banking

You are here: Home : Topics A-Z : Banking

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...

Follow this topic

Sign up for newsletters
Subscribe to our Banking RSS feed

More Banking Articles

On Convergence, Speed Is In; Hubris Is Out
FASB and the IASB rework their approach as Paul Volcker calls for an end to America's love affair with U.S. GAAP. October 30, 2009
Buffer Warren
Why are banks so averse to raising equity? October 29, 2009
Bridging the Gap on Booking Bank Loans
The U.S. and international accounting standards boards mull the divide between them on how banks should recognize changes in a loan's fair value. October 23, 2009
The Pyramid Principle
America's big banks are getting healthier. The small fry are not. October 23, 2009
Credit Suisse Bets Others Will Take Its Cue on Pay
The bank risks talent defections with a plan to make bonus compensation subject to company results over several years, but competitors may be pressured into the same step. October 22, 2009
Executive Comp Rules Will Be Narrow, Pay Czar Suggested
Although the administration is reportedly planning to cut the compensation of 175 executives at bailed-out companies, no wider war is intended, Kenneth Feinberg has suggested. October 22, 2009
Slim Pickings, No Appetite
Constrained lenders and wary borrowers explain falling levels of credit. October 16, 2009
Top Tips for Getting Credit
The key takeaway: do your due diligence on the shrinking universe of lenders as early as you can. And maybe buy some derivatives or credit insurance to make you look less risky. October 15, 2009
Derivatives Regulation: Pretty Nitty-gritty
The crucial details of derivatives reform remain elusive. October 15, 2009