Improving economic conditions and potential tax breaks are expected to drive up equipment purchasing this year, contributing to increased lender confidence for a third straight month.
The Equipment Leasing and Finance Foundation’s (ELFF) monthly confidence index, released Jan. 16, rose to 69.6 in January, its highest mark since July 2021. The index has risen in six of the past seven months.

Falling interest rates, investments in new equipment and potential pro-business policy changes under the new presidential administration are among the reasons for the rise in equipment lender confidence, William C. Perry III, executive vice president and group head at Regions Equipment Finance, stated in the ELFF report.
“As you consider further anticipated rate cut(s), capacity reshoring and the potential for 100% bonus depreciation being reinstated, we expect companies to increase investments in new technology, resources and production equipment,” he said. “This should equate to increased demand for structured leasing and equipment finance products as companies look to maximize associated tax benefits.”
Just over 57% of equipment financiers expect business conditions to improve over the next four months, and 28.6% expect greater access to capital for equipment acquisitions in that time, both unchanged from December, according to the report. Nearly 48% of lenders believe lease and loan demand will increase over the next four months, down from 53.6% last month.
While portfolio performance should improve this year, lenders will have to navigate several challenges, including “material increase in bankruptcy filings again in 2024 versus 2023” and volatile swap rates, Wintrust Specialty Finance Chief Executive David Normandin stated in the report.
End of wait-and-see approach
The number of lenders that view the U.S. economy as “excellent” rose to 9.5% in January from 7.1%, according to the report. More than 52% anticipate the economy getting better over the next four months, down from 53.6% in December.
For much of 2024, many businesses delayed equipment purchases as they waited for multiple Federal Reserve rate cuts and the results of November’s presidential election. Now, they’re ready to ramp up investments despite imperfect business conditions, and lenders are champing at the bit to capitalize on this trend, Auston Bennett, president and chief executive at Vestavia Hills, Ala.-based Battle Horse Financial, told Equipment Finance News.
“Our outlook is as bullish as it has ever been for equipment financing,” he said. “These equipment-dependent businesses that push America forward are ready to grow and they are tired of waiting for ideal economic conditions that may never come. Our customer base is anticipating a new regulatory environment that will create additional opportunities for them.”
The third annual Equipment Finance Connect at the JW Marriott Nashville in Nashville, Tenn., on May 14-15, 2025, is the only event that brings together equipment dealers and lenders to share insights, attend discussions on crucial industry topics and network with peers. Learn more about the event and register here.