Global Finance Report03 Dec 2014
The outlook for the asset and auto finance industry worldwide brightened in the immediate aftermath of the first Global Asset and Auto Finance Survey in 2013, when key players in North America, Europe, Asia Pacific and South America regions were all reporting only limited growth as most were still struggling to deal with the fall-out from the financial crisis.
Updates for Q1 2014 suggested the year ahead would see real improvements, starting in the US where leasing business volumes showed signs of reaching new highs. Business volume was also on the increase in Europe, admittedly from low levels in those countries which have been worse affected by the Eurozone crisis, although the situation was more mixed in the Asia Pacific markets. There, changes in government in Australia coupled with an economic revival based on a residential property boom have had a dampening effect on the traditional mining services and manufacturing asset finance sectors, but the Chinese market had started to expand markedly.
As the effects of the financial crisis continue to ripple through the economy, lenders and the commercial organizations they support have come to see the corporate belt tightening forced on them as a result of the shortage of available credit as a virtue, rather than a limitation. Austerity has brought with it a focus on value for money which, in the immediate short term, translates into opportunities to offer funding for replacement equipment now reaching capacity.