Executive Briefings

Lending to Finance New Company Equipment Robust in September

U.S. companies borrowed more in September than a year ago to finance new equipment, the most in any month since December, but global economic and policy uncertainties curbed spending, the Equipment Leasing and Finance Association said.

Companies took on $8.2bn in loans, leases and lines of credit to fund equipment purchases in September, 16 percent more than $7.1bn a year earlier and 19 percent above August' s $6.9bn, the industry group said. That was the highest monthly amount since the $10.8bn year-end jump in December 2011.

While September's borrowing rise is "encouraging," most borrowing is used to replace aging equipment rather than for expansion, William Sutton, the group's chief executive, said.

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Companies took on $8.2bn in loans, leases and lines of credit to fund equipment purchases in September, 16 percent more than $7.1bn a year earlier and 19 percent above August' s $6.9bn, the industry group said. That was the highest monthly amount since the $10.8bn year-end jump in December 2011.

While September's borrowing rise is "encouraging," most borrowing is used to replace aging equipment rather than for expansion, William Sutton, the group's chief executive, said.

Read Full Article