The Equipment Leasing & Finance Foundation of the US latest survey report for August shows that that 89% of equipment finance companies have offered payment deferrals, including extensions, modifications or restructuring. 76% of companies expect that the default rate will be greater in 2020 than in 2019, 19% expect it to be the same, and 5% expect it to be lower.
76% of companies expect that the default rate will be greater in 2020 than in 2019, 19% expect it to be the same, and 5% expect it to be lower. A majority (81%) of finance companies have not furloughed or laid off employees.
The Foundation also released highlights of the COVID-19 Impact Survey of the Equipment Finance Industry, a monthly survey of industry leaders designed to track the impact of the coronavirus pandemic on the equipment finance industry.
One finance company is quoted as say, “The short term will be challenging from a collection aspect. Certain industries continue to be depressed and I expect a rise in bankruptcies. I also expect asset values (revenue generating/hard assets) to further decline in value.”
89.9% of US machinery finance companies offer payment deferrals
