Equipment Leasing & Finance Foundation’s Monthly Confidence Index for November 2020
The Equipment Leasing & Finance Foundation’s monthly confidence index is defined as a qualitative assessment of future expectations and well as current business conditions. It is reported by key executives who are part of the $900 billion equipment finance sector.
For the month of November 2020, it has been found to be 56.1. This is an increase of 1.1 points. In October, it had been 55.0.
The Foundation also released the highlights for the COVID-19 Impact Survey of the Equipment Finance Industry. The monthly survey is taken by all industry leaders. Due to the pandemic, there has been a huge impact worldwide. This survey has been circulated to know about this impact on the equipment finance industry.
Several topics were covered in the survey. These included analysis on employees and payment deferrals. A total of fifty-five responses were received for this survey between the 2nd and the 13th of November.
The results from the survey showed that 54% of the responders expect the rate of default will be more in 2020 as compared to 2019. However, that is lower than the 56% that had been recorded in October. 11% of the companies expect it to be lower (this was 9% in October), and 35% of them think there will be no change.
In terms of deferral, 4% of the lenders were seen telling that more than 10% of their portfolio is under deferral. This is a decrease from the 7% who had responded the same as this from October.
All of these statistics are from before the election results were officially out. At that time, it was said that the results have a huge role in influencing future decisions and plans of all businesses.