Capital Spending to Reach All-time High in 2014

U.S. businesses, nonprofits and government agencies will spend in excess of $1.5 trillion in capital goods or fixed business investment (including software) this year, financing more than half of those assets, according to the Equipment Leasing and Finance Association (ELFA).

ELFA forecasts the following Top 10 Equipment Acquisition Trends for 2014:

1. Investment in equipment and software will reach an all-time high in 2014. As the U.S. economy and underlying economic fundamentals, including GDP, continue to improve, business investment is forecast to reach a record $1.5 trillion in 2014.

2. Equipment replacement demand will continue to drive investment. Stronger economic growth will boost businesses’ confidence and appetite for capital expenditures, but overall, equipment already in place can be used at a higher capacity. Until businesses find they need to expand their capacity to meet operational demands, their equipment investment will be in replacing existing aging or obsolete equipment.

3. Demand for equipment financing will increase due to greater stability in the federal budgeting process. Businesses will enjoy a greater level of comfort than they have in recent years to make their equipment acquisition decisions for 2014. The two-year budget agreement passed by Congress reduces fiscal pressures and lessens the chance of a potential government shutdown, while a rising tide of economic growth will lift all boats. As equipment acquisitions increase, so will businesses’ demand to finance them.

4. The global economy will play a part in the “big picture” impacting businesses’ equipment acquisition decisions. The lack of long-term breakout growth and expansion in equipment acquisition has some of its causes beyond U.S. shores. External factors like the stagnant Eurozone, foreign oil prices and the cooling of a hot Chinese economy, which have combined to impede growth, will continue in 2014.

5. Rebounding of some industry sectors will spur varied equipment types. Growth in investment is forecast for numerous equipment types, some of which will be the result of increased activity in the housing and energy sectors. The rebounding housing industry will have spillover effects on equipment verticals, including construction as well as trucking and rail transportation to ship homebuilding supplies. Manufacturers’ plans for billions of dollars in investments to take advantage of cheap, rapidly expanding U.S. supplies of oil and natural gas will expand production capacity for energy and downstream products, such as petrochemicals and plastics, and increase demand for industrial equipment.

6. A majority of U.S. businesses will use some form of financing for equipment acquisition. In 2014, investment in plant, equipment and software in the United States is projected to reach $1.5 trillion, of which 57 percent ($860 billion) is expected to be financed through loans, leases and lines of credit, a slight uptick from 55 percent in 2013. In a continuing trend, seven out of 10 businesses will use at least one form of financing to acquire equipment.

7. Credit market conditions will remain favorable for long-term equipment financing. In a continuing trend from last year, businesses will generally find an increasing credit supply as they consider equipment acquisitions.

8. A low short-term interest rate environment will continue, while long-term rates will rise but remain below the historical average. Businesses that want to conserve cash and take advantage of the many other benefits of financing their equipment acquisitions can look forward to the prospect of continued low short-term interest rates until 2015. Although the Federal Reserve’s policy agenda for 2014 will likely result in a rise in long-term interest rates, inducing some companies to lock in lower rates, they will remain low enough by historical standards to keep financing an attractive option for acquiring equipment.

9. Technology innovations will continue to improve the customer experience. While demand for software and technology equipment is expected to remain strong, equipment finance companies will use technology to optimize their delivery and fulfillment systems around customer service. They will meet a growing demand for cloud and mobile technology as well as access to real-time company data and business intelligence.

10. Long-awaited changes to the lease accounting standard will continue to be debated. A new draft of proposed lease accounting changes issued by the Financial Accounting Standards Board and the International Accounting Standards Board issued in 2013 generated substantial opposition for being too burdensome and complex. As a result, the Boards will continue re-deliberations into 2014 and will conduct additional meetings to address concerns before changes are adopted.


DFI’s Brad Bayless Featured in Performance & Hotrod Business Magazine

Manufacturer Financing & Leasing Options

Cash may be king, but smart business owners can benefit from strategic use of alternative financing options.

“Brad Bayless, vice president of Englewood, Colo.-based Dynamic Funding Inc., notes that businesses of all sizes can benefit from such financial options. In the company’s 18 years, it has provided leasing services for the acquisition of high-dollar equipment for companies within the automotive industry and beyond. Regardless of the industry or size of company, he says, the utilization of alternative financing can make solid business sense.” Read more.

DFI Adds Director of Business Development


Contact: Aimee Miller

Aimee Miller Marketing & Communications




Englewood, CO (January 14, 2013) – Dynamic Funding, Inc., (DFI) a Colorado based equipment leasing company, announces the addition of John Wood as director of business development. Wood has over 20 years of experience in the equipment leasing industry.

Wood will lead DFI’s new focus on vendor and manufacturer-oriented business relationships and help establish strategic national vendor leasing accounts programs for manufacturers, distributors and resellers of technology equipment, software, office furniture and other business assets.

“John will be a great addition to the Dynamic Funding team because of his extensive expertise in the equipment leasing industry and his experience establishing and managing direct vendor and manufacturer programs,” says Brad Bayless, vice president of Dynamic Funding, Inc.

Dynamic Funding, Inc. (DFI) is a Colorado based, locally owned and operated, independent equipment leasing company. Founded in 1996, DFI is a full service lessor that provides equipment financing for technology assets, software and services, and additional operating equipment. For more information, please visit



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.