Industry starts the year with unprecedented new business volume as manufacturers drive demand
The U.S. equipment finance industry kicked off 2026 with unprecedented momentum, according to the latest CapEx Finance Index (CFI) released by the Equipment Leasing and Finance Association (ELFA). January’s new business volume (NBV) climbed to a record $11.6 billion, marking the highest monthly total in the two-decade history of the Index.
The seasonally adjusted figures represented a 7.8% increase from December 2025 and a 30.1% jump year-over-year on a non-seasonally adjusted basis. Much of this growth came from manufacturers, whose financing activity surged amid strong order books and improved financial conditions.
“Just as we expected, the equipment finance industry had a strong start to 2026,” said Leigh Lytle, ELFA President and CEO. “New activity surged to its highest monthly dollar amount ever, with much of the gain coming from equipment producers. It’s still early, but I’m optimistic that continued AI investment will translate into another year of strong growth in new financing activity, even if the Fed decides to put rate cuts on ice for the foreseeable future.”
Segment Insights
Despite the overall record-setting performance, results varied by lender type.
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Captive finance companies led growth, with new volumes up 14.9% from the previous month.
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Independent firms saw a modest 2.5% decline, while banks experienced a sharper 11.7% decline.
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Small-ticket volume, a key indicator of broad-based economic demand, grew 5.5% to $5.3 billion.
Post-pandemic lending patterns continue to favor captives and independents, as both segments expand to meet persistent equipment demand across industries from manufacturing to transportation.
Credit and Portfolio Performance
Credit approval rates inched lower for the second consecutive month, averaging 76.8% in January — a 1.3-point decrease from December. Approval rates remained highest in the small-ticket category (80.9%), near their 2025 average. While banks’ approval rates dipped by 1.7 points to 78.9%, captives saw their first increase in five months.
Delinquency trends remained stable at 2.1%, consistent with the two-year range of 1.8–2.2%. Notably, industry losses improved, with the overall loss rate falling to 0.46%, reversing the late-2025 uptick. Independents posted the sharpest improvement, with losses dropping 0.28 percentage points — the largest decline since March 2025.
Industry Perspective
Providing context on current market conditions, Christopher Enbom, CEO and Chairman of AP Equipment Financing, noted the operational challenges and opportunities facing fleet management businesses:
“We started a truck rental and fleet management division in 2024, and we are rushing to implement new technology around our fleet offerings,” Enbom said. “There are also shortages of certain specialized trucks we offer to customers, and we have been scrambling to take advantage of market opportunities. Additionally, we are in the process of increasing our line of credit by $100 million, which has been somewhat delayed — stressful due to our high growth.”
Confidence Climbs to One-Year High
Industry sentiment strengthened alongside record deal flow. The Monthly Confidence Index for the equipment finance sector rose to 67.6 in February 2026, up from 64.6 in January — its highest level since early 2025.
Methodology
The CapEx Finance Index is compiled monthly by the ELFA and measures aggregate new business volume, credit quality, and performance across a representative group of banks, independents, and captive finance companies. Data are seasonally adjusted monthly to reflect updated patterns, and historical figures may be revised as seasonal factors evolve.
For more information or to access the full report, visit the ELFA’s official CFI page.
