Nearly $10 billion was borrowed by U.S. companies in April this year. This is a year-on-year increase in corporate loans by almost a fifth. The growing demand for loans is mainly due to the increasing vaccination and growth of consumer demand for goods and services.
Compared to March, corporate loans increased by five percent, to the resulting $9.8 billion. This results from a study by the American Association of Leasing and Financial Companies (ELFA). “There is a growing number of companies returning to normal life, just as consumer demand is recovering as vaccination progresses,” ELFA Executive Director Ralph Petta told Reuters.
According to him, the data clearly shows that companies invest in anticipation of favorable developments in the summer months. The percentage of loans approved on total applications is also relatively high, holding between 76 and 77 percent during both March and April.
Elfa’s data was obtained from research by 25 companies that make up the Association. These include a number of financial institutions, such as Bank of America, as well as the financial divisions of companies such as Dell Technologies, Siemens AG and Caterpillar.