Asset Leasing Statistics


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

All Posts by Steve Goldstein →
Business Formation Expert  |   Fact Checked by Editorial Staff
Last updated: 
LLCBuddy™ offers informative content for educational purposes only, not as a substitute for professional legal or tax advice. We may earn commissions if you use the services we recommend on this site.
At LLCBuddy, we don't just offer information; we provide a curated experience backed by extensive research and expertise. Led by Steve Goldstein, a seasoned expert in the LLC formation sector, our platform is built on years of hands-on experience and a deep understanding of the nuances involved in establishing and running an LLC. We've navigated the intricacies of the industry, sifted through the complexities, and packaged our knowledge into a comprehensive, user-friendly guide. Our commitment is to empower you with reliable, up-to-date, and actionable insights, ensuring you make informed decisions. With LLCBuddy, you're not just getting a tutorial; you're gaining a trustworthy partner for your entrepreneurial journey.

Asset Leasing Statistics 2023: Facts about Asset Leasing outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Asset Leasing, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

How much of an impact will Asset Leasing Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your questions here.

Please read the page carefully and don’t miss any words.

Top Asset Leasing Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 31 Asset Leasing Statistics on this page 🙂

Asset Leasing “Latest” Statistics

  • From 2020 to 2027, the enterprise asset leasing market is anticipated to expand at a CAGR of 12.3%.[1]
  • The size of the worldwide enterprise asset leasing market, which was estimated to be $820.27 billion in 2019, is expected to increase by 12.3% CAGR from 2020 to 2027 to reach $1.76 trillion.[1]
  • The biggest section of the leasing industry by type, accounting for 36.6% of the entire market in 2021, is lessors of nonfinancial intangible assets.[2]
  • According to information from financial statements included with Canadian corporate enterprises’ tax filings, between 2000 and 2008, tangible assets subject to financial leases made up 25% to 30% of tangible capital stock.[3]
  • According to the CAPEX definition in 2008, the capital stock of the business sector’s fixed assets owned by GBES made up 81% of that capital.[3]

Asset Leasing “Rent” Statistics

  • Standard interest rates vary from 6% to 9%, and typical contracts last between 24 and 72 months.[4]
  • Financial Leasing Market size is estimated that the market will grow significantly in the forecasted period i.e. 2021 to 2028.[5]
  • The SNA 2008 states that payments received under an operating lease are recognized as payments for services and are referred to as rents.[3]
  • On average from 1997 to 2008, the net rental revenue earned by the industry represented 26% of its value added and 48% of its capital income.[3]
  • For the utilities industry and wholesale commerce, respectively, the proportions of net rental income in value added and capital income were 20% and 27%.[3]

Asset Leasing “Lease” Statistics

  • Lease finance covers 100% of the necessary payments for an equipment acquisition.[4]
  • Dealer rates might vary greatly, generally speaking, the typical APR for an operating lease is 5% or less.[4]
  • For new and small companies, factoring is a great substitute for leases and loans since it may typically pay up to 90% of the entire value of your accounts receivable, depending on the creditworthiness of your clients.[4]
  • 79% of US businesses utilize finance loans, leases, and lines of credit, but not credit cards, to buy equipment.[6]
  • Between 2000 and 2008, the proportion of net leased-in capital climbed by 34 percentage points for professional services and by 35 percentage points for lodging and food.[3]
  • More than 14% of the total capital used in retailing and more than 90% of the total capital used in lodging and food were funded by net leased capital.[3]
  • In the fire business on average from 2000 to 2008, net lease-out capital made up more over 80% of all capital utilized. This percentage remained constant over time.[3]
  • The minimum lease payments often equal 90% or more of the leased property’s market value at the beginning of the lease, minus executor fees.[3]
  • Average net leased-in capital to total capital employed ratios for the industries of agriculture, mining, utilities, construction, and manufacturing were 7%, 2%, 4%, 13%, and 6%, respectively.[3]

Asset Leasing “Other” Statistics

  • In 2008, close to three tenths (29 %) of all persons (aged 16 to 74) in the EU-27 used the Internet for banking, a share that was close to one half (47%) when limited to Internet users.[7]
  • In employment terms, the most specialized Member State in this sector was, by far, Luxembourg, where 13.8% of those employed within the business economy were working in financial intermediation excluding insurance and pension funding.[7]
  • During 2020–2027, the Asia–Pacific area will have the highest CAGR of 14.9%.[1]
  • In the US, the average cost of a new automobile rose from $35,742 to $36,718 in 2019 due to interest rates that were respectively 6% and 2% higher than in 2018.[1]
  • The IT and Telecom category will see the greatest CAGR between 2020 and 2027, at 15.8%.[1]
  • The market will be dominated by the SMEs sector between 2020 and 2027, with a CAGR of 13%.[1]
  • Companies set aside 1% to 3% of revenues for maintenance expenses.[4]
  • It’s common for banks and other lenders to demand a substantially greater down payment—up to 20% of the equipment’s entire cost.[4]
  • Rates will rise above 5% in 2023, and potentially higher.[8]
  • The market for leasing automotive equipment is anticipated to expand at the quickest rate between 2021 and 2026, with a CAGR of 14.7%.[2]
  • At a CAGR of 12%, the leasing industry is anticipated to reach $2.4 trillion $1.77 trillion in 2026.[2]
  • According to Andrew and Gilstad, other variables may potentially have an impact on leasing choices.[3]

Also Read

How Useful is Asset Leasing

One of the key advantages of asset leasing is the flexibility it offers to businesses. Instead of being locked into ownership of a particular asset, leasing allows companies to access the equipment they need on a temporary basis. This can be particularly advantageous for companies that may only need equipment for a specific project or for a limited period of time. Additionally, leases can often be structured in a way that allows for easy upgrades to newer equipment as technology advances, ensuring that businesses always have access to the best and most up-to-date resources.

Leasing can also provide financial benefits to businesses by allowing them to conserve capital and preserve credit lines. Since lease agreements typically require minimal upfront costs and spread payments out over time, companies can acquire the assets they need without depleting their cash reserves or taking on additional debt. This can be especially beneficial for new or growing businesses that may not have the capital to purchase assets outright.

Furthermore, leasing can help companies to better manage the lifecycle of their assets. By leasing equipment rather than owning it, businesses can avoid the expenses associated with maintenance, repairs, and disposal. This can result in cost savings over time, as companies are not responsible for the upkeep of the assets they use. Additionally, leasing can offer tax benefits to businesses, as lease payments are typically tax-deductible, reducing the overall cost of leasing assets.

Despite the advantages of asset leasing, there are also potential drawbacks that businesses should consider. One of the main disadvantages of leasing is that companies do not build equity in the assets they use. This means that businesses do not have any ownership stake in the assets at the end of the lease term, potentially leading to a loss of investment. Additionally, lease agreements may have restrictions or penalties for early termination, which can limit the flexibility of businesses to adapt to changing circumstances.

Another potential downside of asset leasing is that it can be more expensive in the long run compared to purchasing outright. While leasing may provide cost savings in the short term, businesses may end up paying more over time through lease payments. Additionally, businesses that lease assets may be limited in their ability to customize or adapt the equipment to suit their specific needs, as lease agreements typically have restrictions on modifications to leased assets.

In conclusion, asset leasing can be a valuable tool for businesses to acquire the equipment and resources they need without incurring high upfront costs. However, it is important for businesses to carefully consider the potential benefits and drawbacks of leasing before entering into a lease agreement. By weighing the pros and cons of asset leasing, businesses can make informed decisions that align with their strategic goals and financial objectives.

Reference

  1. alliedmarketresearch – https://www.alliedmarketresearch.com/enterprise-asset-leasing-market-A10318
  2. leasinglife – https://www.leasinglife.com/news/global-leasing-market-may-reach-2-4-trillion-by-2026/
  3. statcan – https://www150.statcan.gc.ca/n1/pub/15-206-x/15-206-x2014036-eng.htm
  4. businessnewsdaily – https://www.businessnewsdaily.com/8083-equipment-leasing-guide.html
  5. verifiedmarketresearch – https://www.verifiedmarketresearch.com/product/financial-leasing-market/
  6. elfaonline – https://www.elfaonline.org/about/industry-overview
  7. europa – https://ec.europa.eu/eurostat/statistics-explained/index.php/Archive:Financial_credit_and_leasing_sector_statistics_-_NACE_Rev._1.1
  8. leasefoundation – https://www.leasefoundation.org/industry-resources/u-s-economic-outlook/

Leave a Comment