Axis Capital Group Singapore Forum Equipment Acquisition Trends
Equipment Acquisition Trends9 Years AgoNew equipment acquisition will
slowly, but progressively develop, says Axis
Capital Group, Singapore (company is servicing many Southeast Asian
countries such as KL Malaysia, Beijing China, Jakarta Indonesia and many more).
The equipment finance industry is predicting eight percent growth in investment
in equipment and software, representing that equipment acquisition by
businesses in several industry sectors will upsurge. Replacement requests will remain
to push new equipment acquisitions. Equipment becoming old and replacement
necessities will be the chief reasons for a new equipment acquisition, as
businesses expect sturdier ciphers of economic development in advance of
growing their equipment investment. Doubt over suggested deviations
to lease accounting will have businesses portraying a waiting game. The determination of suggested deviations to
lease accounting standards by the Financial Accounting Standards Board (FASB)
and the International Accounting Standards Board (IASB) will have businesses expecting
to discover how their balance sheets, earnings and other financials will be
involved. In the meantime, industry advocacy will remain to diminish the
undesirable influences of lease accounting changes on businesses and the
economy. The great news is that the main causes to lease equipment will stay
complete, from upholding cash flow, to conserving capital, to gaining elastic
financial solutions, to preventing uselessness. Used equipment prices will bounce
in not all but many market segments. The
collateral value of several groups of equipment that ‘bottomed out’ since the
previous years will echo. Car and truck
values will be above all strong, and construction equipment also will sustain
its price. Particular sections, like
corporate aircraft, will stay at fairly lower values. Equipment finance companies will
improve customer relationship and support competences to shape modest
advantages. It targets no more complaints in the future. End users of equipment
will gain advantage significantly from the hard work of banks and incarcerated
and independent finance companies to grow.
They’ll be offering dedicated areas of skill and value-added customer
services that will be a win-win for lessors and lessees alike. Credit availability will allow
equipment acquisition for qualified businesses. Businesses in search of
financing for equipment
acquisitions will often discover credit approvals higher in the equipment
finance industry as compared from bank loans. Organizations looking for methods
to reduce costs and upsurge operational efficiencies will examine technology
innovations. The flexibility,
scalability and relative costs related with cloud computing and shared services
will start to compete with new IT equipment purchases for many businesses. |