Equipment demand reached its second-highest level ever in 2025, according to the latest CapEx Finance Index (CFI), released by the Equipment Leasing & Finance Association (ELFA). Coming in just shy of 2024’s record-breaking performance, the industry successfully weathered a year of significant volatility and uncertainty. With financial conditions remaining strong across the board, the outlook for 2026 remains optimistic, pointing toward another year of healthy balance sheets and continued healthy demand for equipment.
- Total new business volume (NBV) among surveyed ELFA member companies was $10.6 billion on a seasonally adjusted basis, an increase from the prior month.
- Year-to-date NBV contracted by 0.5% relative to the same period in 2024.
- Year-over-year, NBV increased by 5.9% on a non-seasonally adjusted basis.
“December confirmed that 2025 was a year for the record books, with new business volumes closing the year on a tear,” said Leigh Lytle, President and CEO at ELFA. “The data show that the equipment finance industry has not only weathered but thrived amid historic uncertainty. While we expect some volatility in 2026, all signs point to another year of strong demand and stable financial conditions—especially as markets anticipate additional rate cuts later this year.”
Equipment demand had second best year on record. Total NBV grew by $10.6 billion in December, a rise of 3.1% from the previous month, and its longest streak with new activity above $10 billion a month since early 2023. The total new volume series tracks the amount of new activity that banks, independents, and captives added in a given month. Total new activity in 2025 was $119.8 billion, down just 0.5% from its all-time high in 2024. The cumulative growth in business volume over the second half of 2025 was 1.6% higher than in the same period in 2024.
Small ticket volume growth tracks broader economic conditions and is an important barometer of aggregate demand for equipment. Small ticket deals grew by $4.6 billion, up 30% from the previous month.
Activity at banks was down 1.2% from the prior month, but up 16.7% at captives and 29.2% at independents. The gains at captives and independents were fairly widespread across respondents.
The overall credit approval rate edged down but remained elevated. The industry-wide average dropped slightly to 78.1% in December. It continued to hover around its decade high. The average small ticket approval rate dipped from the prior month to 81.0%, still well above its 2024 average of 75.4%. The rate at banks rose slightly to 80.6%. The rate at captives fell for the fifth time in six months to 79.9%, while the rate at independents dropped to 71.8%.
Delinquencies flatlined, while losses rose. The overall delinquency rate was essentially unchanged at 2.0% after rounding. The industry-wide average remained in the middle of its trailing two-year range of 1.9% to 2.2%. The average delinquency rate at banks rose sharply, offsetting a nearly identical percentage point decline in the prior month, while the rates at captives and independents both fell.
The overall loss rate rose by 0.08 percentage points to 0.57% in December. The average loss rate for small ticket was unchanged at 0.69%, the second-highest reading of 2025. Loss rate for banks was unchanged from November, while the rate for captives ticked up slightly, and rose more sharply at independents.
Commenting on conditions from the equipment finance market, Anthony Perettine, President of Peapack Capital and ELFA member, said, “Peapack Capital finished a record year in 2025 and is poised for significant growth in 2026. The business channels we serve have, without exception, experienced strong growth, and underlying credit quality in our diversified customer base is at an all-time high. Portfolio performance, after some bumps in the Covid years, is now exceptionally strong.”
Perettine added, “Now is an excellent time for strong industry participants, especially bank subsidiaries with strong liquidity and a deep understanding of equipment finance, to grow assets and return excellent value and profits to their parent organization.”
Industry Confidence
The Monthly Confidence Index for the Equipment Finance Industry (MCI) tracks the sentiment of executives in the industry. The index reached an 11-month high of 64.6 in January, up from 58.3 in December.
Technical Note
New business volume data are concurrently seasonally adjusted each month to capture the latest seasonal patterns. Data in previous months and years may change due to updated seasonal factors.