U.S. companies borrowed 9 percent more in December to finance equipment investments compared with a year earlier, industry body Equipment Leasing and Finance Association (ELFA) said on Tuesday.
The companies signed up for $12.9 billion in new loans, leases, and lines of credit last month, compared with $11.8 billion a year earlier, according to ELFA. Cumulative borrowings were up 6 percent from January 2022.
ELFA, which reports economic activity for the $1 trillion equipment finance sector, said credit approvals totaled 76.6 percent in December, down from 77.7 percent in November.
“Not knowing yet the full impact of the Fed’s series of rapid rate increases on the economy, I believe many companies will start the year with more focus on credit quality and spreads versus origination volume,” said AP Equipment Financing’s president, Chris Lerma….