Executives Agree: Business Outlook Over Next 4 Months Looks Good
Although there is evidence everywhere, some business people in the construction industry remain hesitant that now is the right time to invest in growing their businesses.
For those who are reluctantly waiting for an all-clear sign — and that now is a good time to make a move and upgrade their equipment — this would be the first time since the recession started that the good news is nearly undeniable.
In a report on the monthly confidence index-equipment finance industry, zero percent of executives believe conditions will become worse over the next four months. That's right — zero.
In this report, 50 percent of the executives said business will improve over the course of the next four months, and 50 percent of the executives believe that business will, at the very least, remain constant over the next four months. Last month 6.1 percent of the executives involved in the report believed that business conditions would worsen in the next four months.
This means that the demand for leases and loans to pay for capital expenditures will, in all likelihood, increase over the four month period. More people are expected to be hired over the four month period to help run the machinery and to help in the overall construction process. This impact is not just a reflection on the construction industry, but most who responded believe the overall United States economy will, at the very least, be level over the next four to six months, and no one believed the economy would be worse over that period of time.
Using equipment financing offers a business more operational flexibility than owning equipment outright offers them. Leasing allows a business to make decisions that relate the future, even the near future, when situations and circumstance may change. At the end of the lease, the customer has the same option to purchase the equipment, continue with the lease, or return the equipment to the lessor. This is also important as it shows a smaller debt on a company's balance sheet.
It is also possible that CFOs will wish to make an investment in their equipment — and therefore their business — in a way that will allow them to retain flexibility with their operational capital. Some lenders recommend that businesses consider improving equipment through leasing, which will allow the business to keep cash on hand and keep cash flow coming in while the potential is there to borrow. The economy is not always in a position to allow businesses to take on additional debt, even for items that make the business stronger. With the forecast over the next four months predicting stability and growth, now is a good time to take some more of that debt on.
Of course making this kind of move right now, rather than paying down debt, not only allows a business to keep more cash on hand, but it also positively impacts the dealer, the broker, and the lender. The trickle-down effects only make the construction economy even stronger for the foreseeable future.
North Mill Solutions
North Mill Equipment Finance assists businesses as they seek to purchase or lease equipment for people who are frustrated with restrictive funding sources that don't allow you to meet your credit needs. We are able to streamline paperwork and use automated systems so dealers and customers alike can receive a much needed fast turnaround and great and reliable service. North Mill Equipment Finance is able to use our financial strength and our decades of experience to help finance small and middle ticket commercial equipment.
For more information, please contact Don Cosenza at email@example.com or calling 203-354-6018.
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