Specialty equipment financier and lessor Madison Capital will stop originating direct financing for new equipment and vehicles at yearend due to competitive and macroeconomic pressures.
Madison Capital will cease offering direct financing for new equipment and vehicles effective Dec. 31, according to a Dec. 16 press release. Meanwhile, the specialty equipment financier intends to continue servicing existing clients and active accounts and help those clients secure additional financing sources for new transactions.
“After 40 years as a direct funder and careful consideration, we have made the difficult decision to no longer provide direct financing,” Nancy Pistorio, president of Madison Capital, said in the release. “Changes in the competitive landscape and the significant, ongoing investments required in technology and for regulatory compliance were some of the key factors that contributed to our decision.”
Madison Capital is one of the longest-operating independent equipment finance firms forming in 1997 following the merger of Harbor Equipment Leasing, which began in 1983, and Fox-Valley Vehicle Leasing, which started in 1974, according to the company’s website.
The lender ranked 132 in the 2024 Monitor 101+ list, which ranks equipment financiers by total assets. It held $33.2 million in total assets, originated $19.7 million in new business volume, and totaled 12 employees in 2023, according to Monitor.
Madison Capital has notified clients directly about the upcoming changes, according to the Dec. 16 release. The closure follows a difficult year for equipment financiers with m2 Equipment Finance and Quality Equipment Finance also ceasing originations.
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