Equipment finance originations dip for fourth straight month
Credit approvals rose to 79% in May, highest level since 2021
Equipment finance originations declined for a fourth straight month in May amid stubborn macroeconomic challenges, but industry leaders remain optimistic.
New business volume in the industry totaled $10.2 billion, down 2.3% month over month, according to the Equipment Leasing and Finance Association‘s (ELFA) CapEx Finance Index released today. Through the first five months of 2026, new business volume increased 11.5% year over year to $53.4 billion.
Despite recent declines, the industry is on pace for record originations in 2026, ELFA President and Chief Executive Leigh Lytle stated in the report, highlighting “healthy financial conditions” overall.
The credit approval rate in equipment finance jumped 1.9 percentage points MoM to 79%, its highest level since December 2021. The average delinquency rate jumped 30 basis points to 2.1%, and charge-offs fell 5 basis points to 0.49%.
While the industry continues to show resilience, high interest rates and geopolitical uncertainty are weighing on decision-making and extending deal timelines, Linda Redding, managing director and head of equipment finance at J.P. Morgan, stated in the report.
“Looking through yearend, we expect activity to remain steady, supported by replacement-driven purchases and selective growth investments that can generate clear returns,” she said.
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