Equipment Acquisition Trends
New equipment acquisition will slowly, but progressively develop, says Axis Capital Group, Singapore (company is servicing many Southeast Asian countries such as KL Malaysia, Beijing China, Jakarta Indonesia and many more). The equipment finance industry is predicting eight percent growth in investment in equipment and software, representing that equipment acquisition by businesses in several industry sectors will upsurge.
Replacement requests will remain to push new equipment acquisitions. Equipment becoming old and replacement necessities will be the chief reasons for a new equipment acquisition, as businesses expect sturdier ciphers of economic development in advance of growing their equipment investment.
Doubt over suggested deviations to lease accounting will have businesses portraying a waiting game. The determination of suggested deviations to lease accounting standards by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) will have businesses expecting to discover how their balance sheets, earnings and other financials will be involved. In the meantime, industry advocacy will remain to diminish the undesirable influences of lease accounting changes on businesses and the economy. The great news is that the main causes to lease equipment will stay complete, from upholding cash flow, to conserving capital, to gaining elastic financial solutions, to preventing uselessness.
Used equipment prices will bounce in not all but many market segments. The collateral value of several groups of equipment that ‘bottomed out’ since the previous years will echo. Car and truck values will be above all strong, and construction equipment also will sustain its price. Particular sections, like corporate aircraft, will stay at fairly lower values.
Equipment finance companies will improve customer relationship and support competences to shape modest advantages. It targets no more complaints in the future. End users of equipment will gain advantage significantly from the hard work of banks and incarcerated and independent finance companies to grow. They’ll be offering dedicated areas of skill and value-added customer services that will be a win-win for lessors and lessees alike.
Credit availability will allow equipment acquisition for qualified businesses. Businesses in search of financing for equipment acquisitions will often discover credit approvals higher in the equipment finance industry as compared from bank loans.
Organizations looking for methods to reduce costs and upsurge operational efficiencies will examine technology innovations. The flexibility, scalability and relative costs related with cloud computing and shared services will start to compete with new IT equipment purchases for many businesses.