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2016 Equipment Leasing Update

As 2015 comes to a close, the Equipment Leasing & Financing Foundation has released what they saw in 2015 and what they expect to see in 2016. Although the year hasn’t quite come to a close and the numbers aren’t final, it’s looking like annual growth of equipment leasing and financing in 2015 will finish with about a 4.2% growth and 2016 is forecast to be similar.

Why Does Equipment Leasing Continue To Grow?

There are several reasons for the continued growth. The main reason that businesses continue to lease their equipment is because technology changes at such a fast pace that owning computers, telephony and even software doesn’t provide the investment benefit it once did. Another primary factor is that once again small businesses are growing. The trend for entrepreneurship and “main street businesses” continued in 2015 and although it is beginning to slow, is expected to grow at around 2% again in 2016.

What Should Businesses Expect in 2016?

There are three main differences businesses will see in 2016 regarding equipment leasing. Perhaps the most beneficial is that Section 179 of the current tax code has passed so that the $500,000 deduction limit is now permanent. Your tax professional will also explain the bonus depreciation extension that is good through 2019. Of course there are limitations on this expansion but your tax professional should be fully versed on the changes.

Another change businesses will see is that the SEC has issued recommendations for changes to increase transparency of leased items on balance sheets. This applies to leases greater than 12 months. Although this doesn’t affect every business, it is good to know about.

Of course the last change is one we’ve all heard about and expected for some time now. The Federal Reserve approved a one quarter percent increase to the short term interest rates. It is expected that rates will begin to tick up, however, the increase was small and another increase isn’t likely until at least the middle of 2016.

Why eLease?

ELEASE has been providing equipment financing to small and medium sized businesses for over 20 years. Our ability to help with non-traditional situations like start-up and lower credit scores is the reason many of our customers come to ELEASE initially. Companies choose us again and again because of our customer service and ability to make a program work for them. If you’re looking for equipment leasing from a company who can work with your business and meet your needs, give us a call and we’ll work to make your equipment financing simple and quick.

Tom Williams

Tom Williams

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ELEASE provides business equipment leasing, small business funding, start-up leasing, working capital loans and other business finance services to small and medium businesses across the US.

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