Equipment lender confidence hits 11-month high
40% of lenders expect increased demand over next 4 months
Equipment lender sentiment improved this month amid new financing opportunities, technology innovations and interest-rate optimism.
The Equipment Leasing and Finance Association‘s Monthly Confidence Index, released today, rose from 58.3 in December to 64.6 in January, the highest it’s been since February 2025.
Of roughly 30 surveyed equipment lenders, 34.6% expect business conditions to improve over the next four months, up from 12.5% in December. Forty percent believe loan and lease demand will increase over the next fourth months, up from 20.8%. The percentage of lenders that expect greater access to capital over the next four months rose to 32% from 25%.
The improved outlook was partly attributed to a more favorable interest-rate environment, Jim DeFrank, executive vice president and chief operating officer at Isuzu Finance of America, stated in the release.
“Additionally, we suspect that a ‘tariff pre-buy’ effect is occurring, as customers accelerate purchasing decisions ahead of potential cost increases,” he said.
Moreover, the industry stands to benefit AI advancements and increased equipment demand driven by onshoring, Jeffry Elliott, chief executive at Elevex Capital, stated in the report.
“However, isolationist policies and lack of workforce are challenges to these positives, so it’s a mixed bag,” he said.
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