New equipment finance business down 4.7% YoY

Equipment finance new business volume remained strong in February, signaling continued demand despite macroeconomic uncertainty.

Total new business volume (NBV) reached $11 billion on a seasonally adjusted basis, down 4.7% month over month but up 13.4% year over year, according to the Equipment Leasing and Finance Association’s CapEx Finance Index released today, marking only the second time monthly volume has reached that level. Year-to-date NBV rose 22.2% compared with the same period in 2025.

Independent providers led growth, with activity at independents and banks rising 12.7% and 11.7% month over month, respectively, according to the release. Captive finance volume fell 17.5% but remained in line with its 12-month average.

Small-ticket volume totaled $4.4 billion, down from January but above its trailing 12-month average, reflecting steady demand, according to the release.

Credit conditions improved modestly, as the overall approval rate rose to 77.1%, up 0.3 percentage points from January, according to the release. Delinquencies fell to 1.8%, the lowest level in 32 months, while loss rates increased to 0.55%.

Industry sentiment softened, with the confidence index declining to 61.0 in March from 67.6 in February, according to the release. The data indicated strong underlying demand and stable credit performance, though geopolitical risks and interest rate policy may create near-term volatility.

The fourth annual Equipment Finance Connect, a crucial industry event for equipment lenders and dealers, takes place at the C. Baldwin Hotel in Houston from May 18-19. Learn more about the event and register here by April 3 for early-bird savings.