Equipment lender sentiment reaches 13-month high
45.8% of lenders expect increased demand over next 4 months
Business-friendly policies, pent-up demand and AI advancements continue to brighten equipment lenders’ outlook.
The Equipment Leasing and Finance Association‘s (ELFA) Monthly Confidence Index, released today, rose to 67.4 in February, it’s highest mark since January 2025. That followed an 11-month high of 64.6 in January.
Nearly 38% of roughly 30 surveyed equipment lenders anticipate business conditions to improve over the next four months, up from 34.6% in January, according to ELFA. The percentage of lenders that expect increased loan and lease demand over the next four months rose to 45.8% from 40%, and those expecting greater access to capital over that stretch was nearly unchanged at 33.3%.
Lenders are benefiting from new tax breaks, reshoring trends and infrastructure projects, which are “supporting real equipment orders, especially in production, automation and materials handling,” Crest Capital President Mark French told Equipment Finance News.
In addition, AI advancements are driving demand for computer equipment, Peggy Tomcheck, president of Aspen Capital Company, stated in the ELFA report.
“As companies adopt AI tools and modernize their operations, they require upgraded hardware but often prefer to preserve cash flow and maintain flexibility,” she said. “Equipment leases provide a cost-effective way to access current technology and easily refresh equipment as demands evolve, positioning my business for strong near-term demand.”
Some lenders, however, are expecting a slow decline in economic conditions amid “interesting dynamics in the equipment finance sector,” Elevex Capital Chief Executive Jeffry Elliott stated in the report.
“Tax policies increase capex spending, but favor cash or lending over leases,” he said. “Business uncertainty is challenging, but equipment needs to be replaced. Inflation is eroding the benefits of lower interest rates. Lack of workforce is a challenge to reshoring and overall growth.”
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