Whew! Are you ready to move on?
Kevin F. Clune, CLFP
The Presidential Election is finally behind us; the World Series has been decided; & the Fed is indicating that they will raise interest rates in December. Channeling my inner pilgrim at the First Thanksgiving, I feel compelled to pause briefly, and give thanks for these and many other blessings. Is it now time to get back to business?
While the World Series is not a factor in future business equipment investment, it was a great distraction during the final week of the election. The Chicago Cubs had not won the Championship since 1908 and had been down three games to one before winning an amazing "come from behind" victory over the Cleveland Indians at Game Seven. I loved this World Series!
The Presidential Election and the possible Federal Interest Rate hike, on the other hand, are relevant and somewhat connected to each other. Since they've been given as reasons for reduced investment, their resolution will hopefully motivate people to resume business activities.
Prior to the election, comments like the following were common...“Difficulties in the marketplace are more political than economic.” was the assessment of PayNet. They explained, “Small businesses were holding off on investment in reaction to uncertainty about the future burden of taxes, cost of labor, and government spending policies."
Now that we have certainty as to election winners, here's hoping we see increasing business owner confidence which should bring a spike in equipment sales and equipment financing.
The almost zero federal borrowing rate created another factor in the depressed demand for credit, as expressed in the PayNet report. For the occasional small to middle market priced asset, most business owners paid cash for any equipment they absolutely needed to function. The many equipment vendors we serve could attest to this development in their respective industries.
With the prospect of the Federal Reserve rate hike looming, it may be a good time to lock in a good rate on a Clune Lease. Whether you want a quick estimate or an exact quote, we will welcome the opportunity to serve your financing needs.
It is now time to unite to form a stronger country and more prosperous economy. The Thanksgiving Holiday is the perfect time to express our gratitude for the freedom of opportunity we have to build businesses and reap the rewards of success.
Happy Thanksgiving,
Kevin F. Clune CLFP
Clune & Company
