ASPEN NEWS  

A Monthly Guide to Trends, Insights, and Solutions in Equipment Finance 

December - 2024, first edition 

Why a News-Letter? 

At Aspen, we are more than just a service provider—we are a dedicated partner to businesses across North America in credit, lending, remarketing, asset recovery, and more. Over the years, we’ve built a reputation for delivering critical insights and solutions that empower our clients to make smarter decisions in the fast-paced equipment finance industry. 

But our mission goes beyond just offering services. We aim to make our clients wildly successful by providing them with peace of mind and the tools they need to navigate challenges and seize opportunities. Whether it’s helping credit teams verify assets, conducting inspections for auto lenders, or supporting remarketing teams in preparing equipment for resale, we specialize in delivering the fast, accurate, and reliable information that decision-makers rely on. 

This newsletter is part of our commitment to supporting the equipment finance industry. Through Aspen News, we’ll share insights, trends, and resources to help you stay informed and prepared for what’s ahead. 

Reflecting on the Year & Looking Ahead to What’s Next in Equipment Finance 

Reflecting on 2024, the equipment finance industry experienced a year of steady growth and strategic shifts, despite challenges such as inflation and high interest rates. Equipment and software investments continued to drive business operations, with nearly $1.34 trillion in financed acquisitions, a new industry record (Lease Foundation, leasefoundation.org).  

Trends like the rise of Equipment-as-a-Service (EaaS) and the adoption of AI-driven automation reshaped business models (ELFA, elfaonline.org), while regulatory changes such as Section 1071 of the Dodd-Frank Act added layers of complexity to compliance efforts (Monitor, monitordaily.com). Looking ahead, industry players anticipate more innovation in remarketing, private lending, and asset management, as well as new opportunities tied to sustainability initiatives and infrastructure investment. Staying adaptable to these changes will remain crucial for credit teams, lenders, and remarketing professionals alike. 

Key Industry Developments in 2024 - In a nutshell 

Credit Teams: Navigating Economic Shifts 

 In 2024, the "soft landing" of the U.S. economy—with real GDP growth at 1.7%—gave credit teams a window of stability to refine lending strategies. However, ongoing interest rate fluctuations required careful adjustments to credit models and underwriting processes. Companies increasingly leveraged real-time payment histories and alternative data sources to predict credit risk and assess borrowers more accurately, ensuring portfolios remained healthy amid lingering inflationary pressures. (elfaonline.org) 

Collections Teams: Rising to Compliance Challenges 

 The implementation of Section 1071 of the Dodd-Frank Act in 2024 heightened the need for transparency in small business lending data. Collections teams relied on detailed inspection reports to validate the state of repossessed equipment, ensuring compliance and precise asset recovery processes. Additionally, the Consumer Financial Protection Bureau (CFPB) extended compliance deadlines, with high-volume lenders required to begin data collection by July 18, 2025. (CFPB) 

Remarketing Teams: Sustainability Drives Asset Value 

 Sustainability took center stage in 2024, as green-certified equipment—especially in construction and agriculture—drove stronger resale values. For remarketing teams, inspections became indispensable in validating eco-certifications and accurately determining residual value. EaaS models also introduced opportunities for shorter-term redeployment of inspected and pre-certified pre-owned equipment, reducing downtime and maximizing value. (Lease Foundation) 

Private Lenders: Navigating the Fix-and-Flip Landscape 

 In 2024, private lenders specializing in fix-and-flip loans encountered a dynamic market influenced by shifting interest rates and evolving real estate trends. Despite these challenges, the fix-and-flip sector demonstrated resilience, with investors continuing to pursue opportunities in property rehabilitation and resale. Lenders adapted by offering more flexible financing solutions to meet investor needs, emphasizing thorough due diligence and risk assessment to maintain portfolio health.  

(The Mortgage Point) 

Auto Lenders: Embracing Digital Transformation 

 Auto lenders in 2024 embraced digital platforms to streamline loan processes, enhancing both customer experience and operational efficiency. The increasing popularity of electric vehicles (EVs) led to the development of specialized financing options tailored to this market. Additionally, fluctuating interest rates influenced borrowing costs, prompting lenders to offer competitive rates and flexible terms to meet consumer needs (see MeasureOne, 2024). 

These trends underscore the industry's commitment to adapting to technological advancements and evolving consumer preferences. 

Looking Ahead 

As 2024 comes to a close, we want to thank you for trusting Aspen as your partner in the ever-changing equipment finance landscape. This past year has been full of challenges and opportunities, and we’re proud to have supported your success every step of the way. 

Looking to 2025, we’re committed to bringing you even more insights, tools, and resources to help you navigate the market with confidence.  

Be sure to subscribe to our newsletter for more updates, industry trends, and actionable insights in 2025. Let’s move forward together—here’s to a successful year ahead!