The business world had a rollercoaster of a year last year. Businesses either sank or swam. If you did make it through, then you most likely had to adapt to the remote/digital world, especially when it came to finances. We want to help you stay on top, so here are the financing equipment and technology trends for the post-COVID era.
What is Financing Equipment and Technology?
Financing equipment and technology are systems, programs or procedures to help companies with their everyday operations, especially with customers. For example, e-signing paperwork is a form of financing technology. Every year this industry changes and includes new trends or features businesses need to look out for. In this guide, we briefly go over the 2020 trends and dive deeper into the 2021 trends.
What Were the 2020/COVID Equipment and Technology Trends?
Before we head off into the current trends, here is a recap of the 2020/pandemic equipment and technology trends. Here are the six top trends that the Equipment Leasing and Finance Association (ELFA) released for last year:
- Remote adaptations created a hybrid approach to working and handling clients.
- New and old technologies needed to merge.
- Videoconferences were a must.
- Front and back-end systems adapted to new technology.
- A more complex cybersecurity system.
- It was essential to invest in client experiences.
There are more trends you can look into. Just check out the ELFA’s 2020 report for more information. It is important to know these trends because many of them are still in effect for 2021, like remote adaptations, cybersecurity and merging old and new technologies. Consider integrating 2020 recommendations as you upgrade to today’s digital marketplace.
What are the Post-COVID Financing Equipment and Technology Trends?
Now that we have gone over the trends during the pandemic, it is time to understand the new ELFA trends in the post-COVID environment. In this section, we break down the top four trends that we are noticing and are impacting companies right now.
Positive Growth From Capital Spending
The job market is starting to open back up, creating many jobs for unemployed people. With more individuals working, you will see an increase in capital spending. Millions of people and businesses had to restructure how they spend their money, socialize and operate. Equipment Leasing and Finance Association explains that this will continue this year. Due to this, there will be about an eight percent boost in equipment and technology investments.
American Companies Will Gain New or Updated Equipment From Technology
Even though we are still in the pandemic, businesses continue to operate the world continues to evolve. More and more companies are heading towards financing equipment and technology, especially since interest rates have seen such a sharp decline. The federal government continues to keep interest rates at almost zero, allowing small and medium-sized businesses to access funds at exceptional rates. These low interest rates also allow more cash to be available to businesses, creating a more stable economy in the United States.
Growth in Many Key Equipment Types due to the Pandemic
The pandemic did not slow sales and distribution of key equipment to halt. Instead, many of these categories are seeing a surge in growth. For example, the medical industry is benefiting from vaccine distributions, construction equipment is surging in single-family homes and the trucking industry continues expansion to meet consumer demand. There is still a decrease in travel, transportation and hospitality industries, but they will increase after vaccines are fully distributed.
Digitization Leads in the Post COVID Equipment Finance Industry
Companies are still using the digital world and online marketplace. As we saw last year, many businesses quickly switched over to e-signatures and e-leasing. This year continues to advance contactless technology, especially in the e-commerce industry and corporate world. ELFA predicts that these types of technology will continue to advance to meet consumer and client remote needs.
These were just four of the trends you need to be looking out for this year. If you want a deeper dive or see other important trends, contact a loan broker. Due to the lending restrictions set up by large institutions, many small or medium-sized businesses are still facing financial uncertainty and stress. If this is you, you need to understand that you are not an outlier. You can, if you’ve been turned down by traditional banks and lenders, your business may “bootstrap” growth through private lending, especially in the equipment category, that we listed above. You need to remember that equipment, for many industries, is the pathway to revenue through improved delivery.
If you have struggled to receive financing, talk with our brokers today. Our team will review your application materials and leverage our broad network to give you the greatest access to the equipment you need.