Loans and leases for business equipment are on the rise, indicating more companies may be willing to take on more business financing in upcomingÂ months. According to a recent Equipment Leasing and Finance Association survey, lending was up 6 percent in December.
A record $11.5 billion was financed in December 2012 - significant growth when compared to December 2011's $10.8 billion. Even though year-end jumps are not unusual, the large increase could be due to concerns about the fiscal cliff, government spending and tax rates. While the fiscal cliff was resolved in time to avert an economic crisis, some project the increases will continue in coming months, as business owners attempt to avoid another crisis over government spending and tax hikes.
However, those seeking growth capital for new equipment or investments shouldn't procure funds from just any lender in their haste to obtain business loans. If you're seriously considering financing to invest in new or updated equipment, talk to your bank representative about lending options that fit you and your growing business. Working with a bank that doesn't have your best interests in mind may not further your business growth efforts in the long run.Â
Content presented by Bridge Bank, offering flexible, customized solutions for entrepreneurs.