US equipment demand holds strong as financing activity surges

Demand for new equipment across the United States remained robust at the start of 2026, with the latest data pointing to sustained investment despite economic uncertainty.

The newest CapEx Finance Index (CFI), released by the Equipment Leasing & Finance Association (ELFA), shows that new business volumes (NBV) continued to perform strongly through January and February, marking one of the fastest starts to a year on record.

Total NBV among surveyed ELFA member companies reached $11.0 billion in February on a seasonally adjusted basis, only the second time the industry has hit that level. Although this represents a 4.7% dip from January’s all-time high, overall activity remains elevated.

Year-to-date, NBV has risen by 22.2% compared to the same period in 2025, while year-over-year growth stands at 14.2% on a non-seasonally adjusted basis. The surge has been driven largely by independent finance providers, which have seen a notable increase in activity.

“Every industry segment saw healthy growth over the last year, with independent providers leading the way with another surge in February.”

The report notes that the data was collected before recent geopolitical developments, including tensions involving Iran, and ahead of the Federal Reserve’s March policy meeting, both of which could introduce volatility in the months ahead. However, current financial conditions remain stable, and credit approvals are holding firm, suggesting resilience across the sector.

Small ticket financing, often viewed as a key indicator of broader economic demand, totalled $4.4 billion in February. While this marked a 14.7% decline from January, it remains above the 12-month average of $3.5 billion, reinforcing the overall strength of the market.

Across lender types, activity rose at both banks and independent providers, increasing by 11.7% and 12.7% respectively. In contrast, financing activity among captive lenders declined by 17.5%, though it remained in line with longer-term averages. Since the pandemic, much of the industry’s growth has been driven by independents and captive finance companies.

Credit conditions also showed improvement. The overall credit approval rate rose to 77.1% in February – its first increase in three months – while delinquency rates fell to 1.8%, the lowest level in nearly three years. This suggests borrowers are managing repayments effectively even as borrowing continues.

However, there were signs of emerging pressure in other areas. The overall loss rate increased slightly to 0.55%, reversing a decline seen in January. Loss rates for small ticket deals also edged higher, nearing a two-year peak.

Industry sentiment, while still positive, showed some softening. The Monthly Confidence Index fell to 61.0 in March from 67.6 in February, though it remains within the range seen over the past nine months.

“While there is abundant uncertainty, our customers continue to invest in capital equipment,” he said. “We remain steady in our commitment to serve the US business community and are finding ways to meet their needs and deliver value.”