Tuesday, November 06, 2007

Lease Delinquencies Double

My small ticket leasing partner shared with me a chart from Paynet showing that lessee payment delinquencies of greater than 90 days has almost doubled in the last 15 months.

This statistic is based on blind reporting by not only small ticket lessors, but all of the big boys as well including Wells Fargo, Bank of America, GE Capital and National City. It also reflects deals from a variety of industries and for a variety of credit types (A, B, C & D).

Notwithstanding the increase in delinquencies, the leasing market is currently so flush with money that a leading lessor which specializes in subprime credits and startups is seeing increased competition. New entrants are taking on more risk and charging lower rates.

With the slowdown in the economy, this market dynamic for lease financing is unlikely to last too much longer.

Need help finding the right lender or telling your story the right way? Read "Matchmaking for Business Loans" and give me a call!

Tags : equipment leasing , leasing , Bank of America , Wells Fargo , GE Capital , National City

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