U.S. Companies Increase Equipment Financing Borrowing

(Reuters) – U.S. companies borrowed 8.7% more to finance equipment investments in November compared with the same period a year earlier, according to the Equipment Leasing and Finance Association (ELFA).

New loans, leases, and lines of credit signed by companies in November rose to $10.36 billion, up from $9.53 billion in the year-ago period.

The Washington-based trade association, which reports on the economic activity for the $1 trillion equipment finance sector, noted that credit approvals for U.S. companies were at 74% in November this year.

The Equipment Leasing & Finance Foundation, a non-profit affiliate of ELFA, reported that its confidence index for December reached a fresh three-year high, suggesting that executives anticipate continued strength in lending volumes and further improvements in financial conditions.

The ELFA CapEx Finance Index of leasing and finance activity is based on a survey of 25 members, including companies like Bank of America, Caterpillar, Dell Technologies, Siemens AG, Canon, and Volvo AB.