Featured in Equipment Finance Advisor, August 2019
By: Mark McGovern, President, Commercial Finance, DLL
We live and work in a world where ‘tech begets tech’. What do we mean by that? In a technology consumed and driven society, technology that enters the market creates, develops, and identifies a niche for more technology. This creates a seemingly never-ending cycle and need for updating or replacing technology. Cycles that last 18 months or less generate the need for flexible, end to end solutions that provide dealers and resellers options.
Technology permeates every industry; from healthcare administration to food production, to building construction. The concept of renting technology for a period of time and upgrading is not foreign. It also helps keep pace with technology developments across industries. Corporations rent software licenses, digital equipment and space in data centers. Schools rent computers and tablets for students. In turn, manufacturers and dealers of technology offer end to end solutions to get inbound lines of technology distributed to businesses and into the channel.
According to the Equipment Leasing and Finance Association (ELFA), one of the top 10 acquisition trends for 2019 focuses around the sentiment of preventing obsolescence as a top priority for capital spending. The organization’s 2019 Equipment Leasing & Finance U.S Economic Outlook research states, “Equipment finance businesses across all industries will seek out new technologies for everything from enhancing the end-user experience to increasing efficiencies to managing obsolescence.”