My small ticket leasing alliance partner just told me that interest rates on leasing transactions are being increased by a major bank leasing company. This funding source finds its business through a network of independent finance brokers and lessors.Why is this lessor raising rates for "application only" and small commercial leasing deals?
First, the lessor's cost of borrowing has increased.
Second, delinquencies and defaults have also increased - higher risk goes hand-in-hand with higher rates.
Per my alliance partner, while this source was the first to increase rates, the news on the street is other lessors will soon follow.
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Tags : Equipment leasing , leasing , app only , equipment finance
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