When did equipment financing begin?
Where was the first equipment financing firm?
Who developed the idea?
Why is equipment financing so important?
When most people imagine equipment leasing, they picture the contemporary international process- similar to the services that Global Finance Group provides. However, equipment financing is an age-old process, native to several civilizations and time periods. Ancient civilizations, including the Egyptians, Romans, and Phoenicians, engaged in equipment leasing in order to finance agricultural equipment, to engage in mass construction work, and as a way to finance their military equipment. Beyond ancient civilizations, equipment financing was used to finance equipment during the Industrial Revolution and as a means to supply militaries during the Second World War.
Equipment Financing and Leasing has been essential to businesses large and small for generations, as an enabler to encourage new ideas and inventions, to avoid large investments in potentially obsolete products, and as a means to provide economical solutions to customers in need of particular products. Major financing in the United States was spurred by the Railroad Era in the 1700’s, which included leasing for trains and railways and later for cars and automobiles.
Financing in the contemporary sense was originated in 1952 in the United States. Henry Shofeld created the first contemporary leasing firm, in order to support railway construction. After success in the United States, Shofeld expanded his company (the United States Leasing International Inc.) to cover parts of Europe. Encouraged by Shofeld’s success, the 1950s and 1960s experienced growth in financial firms and businesses locally and internationally. Today, financing is offered with most large equipment products and offers benefits to both vendors and customers buying products.
So when did equipment financing begin? That’s a great question, which is very hard to answer. One thing we know for sure, is that equipment financing is a system that works and has stood the test of time. At Global Finance Group, we are happy to assist you with all your financing needs, excited to fuel the expansion and progression of your business.