The Equipment Leasing & Finance Foundation (Foundation) released a new study, “Equipment Finance Funding, Securitization & Syndication: Best Practices for Today and Tomorrow,” designed to analyze and report on COVID-19’s impact on the funding markets for the equipment leasing and finance industry. Prepared for the Foundation by The Alta Group, the study reveals that the equipment finance industry performed considerably better than expected through the pandemic due to factors including the SBA’s Paycheck Protection Program, unanticipated dividends from supply chain issues and increased availability of capital.

The comprehensive study draws on a series of surveys and in-depth interviews conducted with senior industry executives of independent, bank and captive finance companies; industry lenders; securitization issuers; and ratings agencies. Among the details provided in this wide-ranging study are:

• How the pandemic’s impact differed from the Great Recession of 2008-2009;
• What funding tools are available to industry participants;
• How the funding, securitization and syndications markets have performed since the pandemic;
• What to expect from emerging funding opportunities; and
• Which best practices industry peers utilized to optimize their funding models.

“Resiliency is a long-standing characteristic of the equipment finance industry, and the results of this study reinforce that reputation,” said Tom Ware, Foundation Research Committee Chair. “Readers will benefit from the experience of industry participants and insights about potential risks and opportunities to best position their organizations for the future.”

Two of the study authors, Gary LoMonaco and Patricia Voorhees of The Alta Group, will present highlights of the findings at ELFA’s National Funding Conference on April 13.

Download the full report here.

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