Equipment lender confidence dips ahead of potential demand surge

Equipment lender confidence dropped for the second straight month as economic conditions remain shaky, but a federal interest rate cut and tax breaks signal financing opportunities on the horizon. 

The Equipment Leasing and Finance Foundation’s (ELFF) Monthly Confidence Index, released today, ticked down to 59.9 in September from 60.2 in August. The index remains well above the 19-month low of 41.9 in April, but lender confidence has yet to return to levels seen at the beginning of the year. September also marks a 2-point decline from a year prior.  

However, that could change upon the Federal Reserve lowering its benchmark interest rate by 25 basis points, “which will be added incentive along with typically heavier Q4 purchases to drive demand higher by yearend,” Daryn Lecy, chief operating officer of West Chester, Pa.-based Oakmont Capital Services, stated in the report. 

Restored 100% bonus depreciation and other new tax breaks should also drive a surge in investment activity and build momentum going into 2026, Kris Realander, sales manager at Morrisville, N.C.-based dealership Triangle Equipment Group, told Equipment Finance News. 

“As for the remainder of the year, I can tell you that it’s looking strong,” he said. “We all came out of the gate slow, but now everybody is getting their legs underneath them.” 

Lenders can help borrowers fully capitalize on full bonus depreciation by mapping every funded asset that could be considered qualified production property, including used equipment, Mark French, chief executive of Atlanta-based Crest Capital, previously told EFN.  

Economic outlook brightens 

Of roughly 30 surveyed equipment financiers, 39.1% expect economic conditions to improve over the next six months, up from 23.1% in August, according to ELFF.  

More than 39% anticipate loan and lease demand to increase over the next four months, up from 26.9%. The number of lenders that expect greater access to capital over the next four months also rose to 21.7% from 11.5% in August. 

Despite the improved outlook, “many small and mid-sized businesses have yet to experience any meaningful uptick in business opportunities,” James Jenks, CEO of Global Finance and Leasing Services, stated in the report.  

“There are some pockets around the country experiencing improvement, but far from being spread around widely,” he said. 

Check out our exclusive industry data here.