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NEFA Funding Symposium

DFI president, Jim Tarbell, will be attending the 2013 NEFA Funding Symposium in Nashville this week with brokers, lessors, banking leasing companies and other industry executives. Looking forward to the networking opportunities, education and insights from the conference that will help us better service our clients with the appropriate commercial financing options. Click here for more info on the conference.

Businesses Not in Favor of Lease Proposal

The proposal on financial reporting for leases faces significant opposition from businesses from around the globe, including U.S. retailer Dollar General, Delta Airlines and Swiss oil and gas offshore drilling contractor Noble Corp, according to a recent article in the Journal of Accountancy.

The proposal calls for lessees to report a straight-line lease expense in their income statement for most real estate leases. In most equipment and vehicle leases, lessees would recognize a lease as a nonfinancial asset measured at cost, less amortization. This would result in a total lease expense that generally would decrease over the lease term

The boards have expressed a desire to have a final standard in place by 2014, although implementation is not expected to occur earlier than fiscal years beginning Jan. 1, 2017.

Read more.

Denver Businesses Add Jobs & Prepare for Equipment & Tech Upgrades

Job growth in Metro Denver remained strong through the first half of the year, as the region added jobs at a faster rate than both Colorado and the nation, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for August 2013.

Metro Denver’s healthy economy, as well as its attractive business environment, continued to earn the region accolades. CNBC recently ranked Colorado as a top-10 state for business, and Outside magazine ranked 19 Metro Denver companies on its list of the 100 best places to work in the U.S.

And with more jobs comes more outlays on equipment and technology for business owners. According to Technology Business Research’s survey, IT spending is projected to increase in the 1 to 3 percent range in 2014. Find out more about the basics of leasing and how to upgrade your equipment and technology while conserving your working capital.

Brad Bayless Authors Article for CoBiz Magazine

Top five tech trends for business

What capital expenditures have you been putting off?

By Brad Bayless

With the dog days of summer in full swing, it’s the perfect time to take inventory of your business needs for the remainder of the year. We know many companies have been getting by the past few years with their existing IT systems and equipment to avoid overleveraging themselves as the economy faltered.

Many business owners have put off making important capital expenditures, but the tide may be changing. Even communications giant, Verizon, recently announced that it expects to increase its capital expenditures this year from its previous estimate of $16.2 billion to something between $16.4 billion and $16.6 billion. Read more.

Top 5 Trends in Technology

According to the 2013 ELFA Software Guide, the following are the top tech acquisitions, upgrades or trends for this year.

1. Software

Capital improvements are on the upswing with the increasing economic outlook and software companies report business is on the rise. Companies who have put off updating their IT platforms may find that this the ideal time to invest in overdue software upgrades.

2. New Business Intelligence Tools & CRM Solutions

Implementing automated workflow systems and more streamlined processes through new technology will allow for more accurate reporting, data collection and improved customer tracking.

3. Self-service Platforms

Some companies today are looking at how investing in new self-service technology can help reduce staff and other overhead costs and put certain businesses processes in the hands of customers, vendors and partners.

4. Cloud Computing

Cloud computing is certainly the new model for many companies who want solutions that are cost-effective, flexible and easy to expand. With cloud computing, users can access data from anywhere without the hassle of maintaining, hosting or supporting servers and software in house.

5. Lease Accounting Changes

The Financial Accounting Standards Board and the International Accounting Standards Board rule changes are expected to take effect in 2017 and this may effect current and future equipment leases. Now is a good time to evaluate your current IT system, especially old platforms that are difficult to change, and discuss your options with a commercial finance partner.

Q2 Economic Activity Update

Economic activity in the manufacturing sector expanded in April for the fifth consecutive month, and the overall economy grew for the 47th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report on Business. The report was issued recently by Bradley J. Holcomb, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee.

Of the 18 manufacturing industries, 14 are reporting growth in April. Examples of these high-growth industries include Furniture & Related Products; Appliances & Components; Machinery; Plastics & Rubber Products; Transportation Equipment; and Computer & Electronic Products.

Increased economic activity in the manufacturing sector indicates an overall more confident nation in terms of the economy and the impact of federal policies on capital expenditures. At the same time, there continues to be a solid supply of capital available at low rates. Read more.