Equipment Finance Demand Hits Second-Highest Level on Record in 2025
Event summary
- Total new business volume (NBV) among ELFA member companies reached $10.6 billion in December 2025, up 3.1% from the prior month.
- Year-over-year NBV increased by 5.9% on a non-seasonally adjusted basis, but year-to-date NBV contracted by 0.5% relative to 2024.
- Small ticket deals grew by $4.6 billion, up 30% from the previous month.
- The overall credit approval rate edged down to 78.1% in December, but remained elevated.
- The overall loss rate rose by 0.08 percentage points to 0.57% in December.
The big picture
The equipment finance industry demonstrated resilience in 2025, achieving its second-highest demand level on record despite significant volatility. The sector's strong financial conditions and healthy balance sheets suggest continued stability, but the outlook for 2026 hinges on market anticipation of rate cuts and the ability to navigate potential volatility. The performance of captives and independents, which saw substantial growth, highlights a shift in market dynamics.
What we're watching
- Market Volatility
- How 2026's anticipated volatility will impact equipment finance demand and financial conditions.
- Credit Quality
- Whether the industry can sustain its strong credit quality amid potential rate cuts.
- Sector Growth
- The pace at which captives and independents continue to outperform banks in new business volume.
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