Equipment finance originations tick up 6% YoY
New business volume dipped 0.5% in 2025
The equipment finance industry ended 2025 on a high note as originations spiked while credit approvals remained elevated.
New business volume in equipment finance totaled $10.6 billion in December 2025, up 3.1% month over month and 5.9% year over year, according to the Equipment Leasing and Finance Association‘s (ELFA) CapEx Finance Index, released today. December marked the second-highest monthly total of the year.
For the full year, new business volume fell 0.5% YoY to $119.8 billion, but increased 1.6% YoY in the second half.
December and full-year results highlight the industry’s resilience in the wake of “historic” macroeconomic uncertainty, ELFA President and Chief Executive Leigh Lytle stated in the report.
“While we expect some volatility in 2026, all signs point to another year of strong demand and stable financial conditions, especially as markets anticipate additional rate cuts later this year,” she said.
Meanwhile, the industry’s average credit approval rate was 78.1% in December, down 10 basis points (bps) from November but near September’s nine-year high of 79.2%. The average delinquency rate was unchanged at 2%, and charge-offs fell 8 bps to 0.57%.
With equipment lender sentiment improving, now is “an excellent time for strong industry participants, especially bank subsidiaries with strong liquidity and a deep understanding of equipment finance, to grow assets and return excellent value and profits to their parent organization,” Anthony Perettine, president of Peapack Capital, stated in the report.
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