This is one of my annual posts about what’s “hot or not” in the world of equipment financing. I could start with the obvious joke that Fletch himself is always hot, but Mrs. Fletch always laughs at me when I go on that tangent, so I’ll refrain.
Ok, let’s talk about what’s hot in equipment financing. And at the risk of sounding incredibly boring or simplistic, I can sum it up in one statement – just about everything is hot.
Really, I’ve been in the equipment financing and equipment leasing business for close to thirty years, and I have never seen a small business climate quite like the one I am seeing right now. Almost regardless of industry, most established small businesses are doing well. I say “almost” regardless of industry, because there are few sectors not doing so well, but I’ll discuss those in my next “not hot” post (and to be honest, they are pretty obvious).
But yes, almost everything is hot in equipment financing. Here are a few reasons (I think) why:
- Favorable Business Regulations – This is about as close to politics as I’ll get, but right now, small businesses feel as though the government is going to stay out of their way. That always helps.
- Lower Taxes – The Tax Cut and Jobs Act signed in December 2017 has definitely helped businesses, and despite some negative press about stock buybacks and such, Fletch sees firsthand the increase of small businesses investing in themselves.
- Robust Section 179 Deduction – The same The Tax Cut and Jobs Act increased the Section 179 deduction to One Million Dollars. That’s double what it was last year. This has definitely encouraged businesses to buy more equipment in 2018.
- Experience – Most businesspeople know the economy is cyclical, and while these good times seem like they will last, smart businesspeople strike while the iron is hot. Kind of a “we have the funds now, so let’s improve” attitude. It’s healthy.
The above all combine to create a “just about everything is hot” in equipment financing in 2018. Hopefully, your industry is doing well too, because it’s a great time to be in business.