In a recent report issued by Standard & Poor's Ratings Service, U.S Small-Ticket Equipment Industry Continues to Evolve,' several issues affecting the rapidly growing equipment-lease sector, including growth and advances in technology were addressed.
This sector, which includes assets ranging from office equipment to telecommunications equipme, has seen larger transactions coming to the market in the past few years, indicating a speedy growth rate mainly through acquisition. Examples cited were the merger of Newcourt Credit Group Inc. and CIT Group Inc. in 1999 and the growth of Unicapital Corp. and SierraCities.com Inc.
Although growth can be viewed as a positive aspect, the growth process itself carries numerous risks. Market players attracted to this sector must examine their strategies thoroughly, the report said.
Technology is also a major factor for equipment sector hopefuls. The report states that safe portfolio growth and management can be enhanced through investments in sophisticated software such as credit scoring models and account maintenance packages. It further states that a company leveraging the right technologies can produce a number of advantages crucial for growth.