Published in ELFA Online
Industry experts are expressing optimistic notes for the 2025 funding market, grounded in credit quality and strong relationship-based business. To frame that forward-looking position, reviewing an interesting 2024 provides perspective.
A look back at 2024
“Last year was a year marked by uncertainty, with interest rates and the presidential election serving as the biggest factors,” says Bob Johnson, vice president of capital markets at Summit Funding Group. While rates ended the year not far off from where they began, fluctuation throughout the year included a 90 bp run-up into May, he explains. Next came a drop of a full point and a half leading into the election, with rates then coming back up another 80 bps. “We were whipsawed around with rates as we waited for the Fed’s decision on when they were going to start cutting, and also what philosophy they were going to adopt after the election.”
Herb Reeder, vice president of Huntington Equipment Finance, agrees, describing 2024 as “fickle and choppy.” Within the industry, different institutions took different routes. Some companies had aggressive growth goals; others looked to maintain their 2023 spreads with a liquidity focus. At Key Equipment Finance, the emphasis was on streamlining and lending to core clients, according to Sera Oliver, director of capital markets. “Credit became tighter in 2024,” she says. “Banks were conserving capital, and were less aggressive with lending.”
