Equipment Financing Demand Hits Record Highs Despite January Peak
Event summary
- New business volumes (NBV) in February 2026 reached $11.0 billion, a 4.7% decline from January's all-time high but still the second-highest ever recorded.
- Year-to-date NBV rose 22.2% compared to the same period in 2025, with independent providers leading the growth.
- The overall credit approval rate increased to 77.1% in February, up 0.3 percentage points from January.
- The delinquency rate dropped to 1.8% in February, its lowest point in 32 months, while the loss rate rose to 0.55%.
- The Monthly Confidence Index fell to 61.0 in March from 67.6 in February, reflecting lingering uncertainty.
The big picture
The equipment financing sector is experiencing robust demand, driven by strong economic conditions and stable credit approvals. Independent providers are leading the charge, though geopolitical and monetary policy uncertainties could introduce volatility. The industry's ability to withstand shocks will depend on its resilience to external pressures and the sustained health of small-ticket transactions, a key barometer of broader equipment demand.
What we're watching
- Geopolitical Risks
- How the conflict in Iran and Fed policy shifts may impact equipment financing demand in the first half of 2026.
- Credit Market Stability
- Whether the recent rise in loss rates signals broader credit tightening or is an isolated anomaly.
- Sector-Specific Demand
- The pace at which independent providers sustain their growth momentum amid potential economic headwinds.
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