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The Transformative Potential of the SMALL LENDER Act: A Game Changer for the Equipment Finance and Leasing Industry

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An Executive Summary of the transformative potential of the SMALL LENDER Act. The SMALL LENDER Act is a game changer for the equipment finance and asset leasing industry. The Act would provide relief to small businesses and lenders from the CFPB’s final rules under Section 1071 of Dodd-Frank. In addition to offering an understanding of the Act, the blog covers how it enhances accessibility and inclusion, drives innovation in the equipment finance and asset leasing industry, strengthens the market ecosystem, and helps foster economic growth and stability.

Protecting The Future of Equipment Finance: Insights from the 2024 Capitol Connections Convention

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Key Executive insights from the President/CEO of LTI Technology Solutions, Jeff Van Slyke of the 2024 Capitol Connections Convention held in Washington DC on May 22nd, 2024. The blog summarizes the ELFA organized event, Capitol Connections Convention. Held on Capitol Hill, top leaders from across the equipment finance and asset leasing industry met with policymakers regarding the impact of the proposed changes to Section 1071 of the Dodd-Frank Act and its impact on the industry. Discussions focused on three critical areas:
#1. The Challenges of Section 1071 of the Dodd-Frank Act, specifically regarding extensive data collection requirements to the credit application process.
#2. CFPB’s $5 Million Threshold which effectively turns Section 1071 into a broad catch-all repository for nearly all commercial loans across the US, deviating from the original intent of the legislation.
#3. Advocacy for the SMALL LENDER Act. Collectively, ELFA members urged COngress to co-sponsor the SMALL LENDER Act which aims to provide relief from the CFPB’s final rules under Section 1071 of the Dodd Frank in 3 critical ways: extend the compliance period to three years with an additional two year grace period as opposed to the current 18-month implementation period; redefines the definition of small business to those with gross annual revenues of $1 million or less, instead of the existing $5 million; and adjusts the financial institution criteria to those financial institutions originating at least 500 covered transactions annually, rather than the current 100.

The 35th Annual ELFA Funding Conference: Navigating Challenges & Building Relationships

While the challenges in certain sectors of our marketspace loomed large, this year’s conference exuded a sense of optimism and determination. Many participants leveraged the platform to capitalize on new opportunities or cultivate relationships to navigate the turbulent waters we face. Despite the headwinds encountered in Q1, the prevailing sentiment was one of unwavering positivity and resilience. It was a poignant reminder of our collective strength and adaptability in the face of adversity.

Top Five Highlights From The 2024 ELFA National Funding Conference

Top Five Key Strategic Insights from the 2024 National ELFA Funding Conference: 1. Optimism in the Equipment Finance Industry especially in sectors such as small ticket/vendor, middle market and structured finance. 2. Strategic Growth and Innovation as strategic decisions to diversity portfolios into higher margin sectors emerge that take advantage of powerful state of the art technology. 2. Rise of Private Equity and Private Credit creating niches in Equipment Finance ecosystem. Combined with newly emerging financial backing with traditional bank lessors on large transactions, they will be a disruptive force driving industry change. 4. Captive Finance Companies Experience Shift as they actively seek additional sources of capital to sustain their growth as their manufacturers equipment prices continue to grow. 5. Evolution in Bank Equipment Finance Marketplace as they continue to evolve and focus on larger project finance opportunities such as Clean Energy, Railcar Financing and projects funded with depositor relationships.

Three Top 2023 Performers Poised for Continued Success Through 2025

Equipment Finance Industry Trajectory 2024-2025: ELFA Executive Roundtable Observations. The Annual ELFA Executive Round Table held March 3-5 in Orlando, Florida was a forum that yielded valuable insights into the Equipment Finance Industry’s trajectory for 2024-2025. After engaging in roundtable dialogues and expert speaker sessions, several notable themes emerged that have implications for the marketplace both short and long term.

Digital Transformation For Equipment Finance Matters

What is Digital Transformation and why does it matter? Digital transformation is the customer-centric reimagination of the future of digital technology into all areas of business. The transformation has brought many benefits to the equipment finance industry and has created a shift in the prevailing thinking and culture regarding adopting technology.

In the new reality of the post- COVID-19 economy, digital transformation has gone from a priority to absolutely critical for companies. Prior to COVID-19, companies took time with a slow and steady approach. However, the lessons learned by the disruption caused by the pandemic, has replaced the slow approach with need to accelerate digital transformation. It is now an imperative that companies begin driving a digital culture into their organization.

2023 & Beyond: Digital Tech Trends In The Equipment Finance Industry

The key trends in equipment finance technology to look for in 2023 and beyond to look for:

Automation: Streamlining processes and providing faster, more accurate decision-making.
Digital Platforms: Transforming interactions with customers by enabling customers to apply for financing, manage accounts and access information and services online.
Internet of Things (IoT): Providing data on performance and usage to improve maintenance schedules, predict equipment replacement timeframes, and identify opportunities for cost savings.
Block-Chain Tech: Providing greater transparency and security enabling companies to create secure records of equipment ownership and transactions, reducing risk for fraud and errors.

Digital Agility & Operating Equipment Finance

There are many benefits to adopting a framework that elevates digital agility and brings your equipment finance business into the digital age:

Empower Self Service with direct customer access of contract details, secure payments and quick communication

Quick Access to FAQ’s reduces Customer Service Inquiries and improves Customer Satisfaction

Improve Productivity by refocusing your workforce on revenue-generating tasks

 

Working Remotely During COVID-19: 7 Tips

Working remotely for companies is becoming more prevalent as the impact over COVID-19 continues to rise in the U.S. With states increasing to mandate “staying-at-home,” residents are to avoid nonessential outings. Today we outline how you can adopt an effective remote-work strategy. This will allow you to continue delivering results throughout your organization.