New business volume hits record, up 18.6% YoY in Q1

Equipment finance demand remained strong in March despite a slight monthly slowdown, with first-quarter new business volume reaching a record high.

Total new business volume (NBV) was $10.8 billion in March on a seasonally adjusted basis, up 14.9% year over year but down 1.8% from February’s $11 billion, according to the Equipment Leasing and Finance Association‘s (ELFA) CapEx Finance Index released April 28. Year to date, NBV rose 18.6% compared with the same period in 2025.

Despite two months of softer growth, total quarterly volume reached the highest level in the survey’s history, which dates back to 2006, according to the release. Demand has remained resilient even as geopolitical tensions and higher energy prices persist, although industry sentiment weakened, with the Monthly Confidence Index falling to 54.6 in April from 61 in March, its lowest level since May 2025.

Small-ticket volume, a key indicator of equipment demand, totaled $3.4 billion in March, down 17.7% from February but near its 12-month average. Activity at banks and independents rose 2.3%, while captives declined slightly. Independent volumes dropped sharply month over month but were nearly flat year over year.

Credit quality remained strong, with approval rates rising to 77.2% overall and 79.8% for small-ticket deals, according to the release. Delinquencies edged up to 2%, while the average credit loss rate increased to 0.62%, up 500 basis points MoM and 200 basis points with higher losses across all lender groups.

The fourth annual Equipment Finance Connect, a crucial industry event for equipment lenders and dealers, takes place at the C. Baldwin Hotel in Houston May 18-19. Learn more about the event and register here.