Access to the Latest Equipment Cited by SBA State Small Business Winners as Top Benefit of Leasing, According to New Equipment Leasing Association Sur

Wednesday, July 20, 2005

ARLINGTON, Va.--(BUSINESS WIRE)--July 20, 2005--The Equipment Leasing Association (ELA) today released the results of its annual survey of the Small Business Administration's (SBA) State Small Business Person of the Year winners about their habits and reasons for leasing equipment.

The top benefit of leasing cited by respondents this year was the ability to have the latest equipment. Of the 20 respondents (from among the 50 eligible state winners), 70 percent currently lease equipment while 40 percent said they have leased in the past. Eighty percent agree that leasing equipment is a good business strategy for meeting the demands of small businesses.

'This year's survey results reiterate the role lease financing consistently plays as a resource for small businesses,' said ELA President Michael Fleming. 'Since small businesses are traditionally under capitalized, leasing provides a flexible option for them to access the equipment they need to be competitive and grow their business.'

Office equipment is the top equipment type leased, followed by trucks/vehicles and materials handling equipment, both reported by 25 percent of respondents. Forty-five percent of respondents reported their need for technology equipment increased disproportionately to other equipment needs, while an equal percentage reported it had not.

Other key findings:

-- Nearly three-quarters (73%) of respondents lease 15% or less of their equipment assets.

-- The ability to have the latest equipment was the top reported perceived benefit of equipment leasing with 65% of the respondents selecting this attribute. Consistent expenses in budget planning followed as the second highest perceived benefit with 35% of respondents noting this attribute. Help managing company growth and no down payment were the two next most reported benefits, with each cited by 30% of respondents.

-- Office equipment has been the top equipment type leased for the last three years.

-- When evaluating financing options for equipment procurement, cash is the number one competitor with 70% of survey participants considering this method. More than half (55%) consider a bank loan, followed by 35% evaluating a line of credit for equipment acquisition.

-- 65% of the respondents stated that the economic climate does not affect their equipment acquisition decisions.

-- The percentage of respondents who currently lease (70%) decreased over 2004's percentage of respondents who were leasing (86%), but was higher than in 2003 (65%).

Members of the accredited media may obtain a copy of charts and graphs for publishing by contacting Suzanne Jackson at 434-972-7278 or sj@FourLeafPR.com.

To review the top line report, visit http://www.chooseleasing.org/market/sba/ELASBA2005.pdf"