Equipment Financing Demand Remains Strong as Businesses Continue to Invest
Businesses continue to invest heavily in equipment despite higher borrowing costs and broader economic uncertainty.
The Equipment Leasing & Finance Association reported $11.8 billion in new equipment financing activity in August. While that was below July’s record, August was still the second-strongest month in the history of ELFA’s CapEx Finance Index.
Year-to-date new business volume is now 17.3% ahead of the same period in 2025, putting equipment financing activity on pace for a record year.
Companies continue to find opportunities worth investing in.
Equipment Investment Remains a Priority
Equipment purchases are often driven by operational needs that don’t disappear when economic conditions change.
Businesses still need to replace aging assets, increase capacity, improve productivity and invest in technology. When those investments can generate meaningful returns, equipment financing or equipment leasing can provide a way to move forward without committing the full purchase price upfront.
The strength of this year’s financing activity suggests many companies are continuing to make those investments.
Small-ticket financing provides another indication. Although volume dropped sharply from July’s record, year-to-date activity remains 25.9% above the same period last year.
That is particularly relevant because ELFA considers small-ticket activity an important indicator of broader business demand for equipment.
Strong Demand Doesn’t Mean Automatic Approval
One part of the August report deserves particular attention.
The industry’s average credit approval rate declined to 75.4%, its lowest level since February 2025. At the same time, overall delinquencies remained at 1.8%, while the average loss rate declined to 0.44%, its lowest level in ten months.
Together, those numbers show a market where equipment financing demand remains strong and existing credit performance is healthy, even as approval standards appear more selective.
Businesses considering equipment financing can prepare by having current financial information available and a clear understanding of how the equipment will contribute to operations.
A well-defined investment case can help demonstrate whether new equipment is expected to increase revenue, reduce costs, improve productivity or address an existing operational need.
Financing Can Support Continued Investment
Higher borrowing costs still matter. So do energy prices, economic conditions and the cost of the equipment itself.
But those factors have not stopped businesses from investing.
ELFA now forecasts $137.7 billion in new equipment financing volume for 2026, which would represent the highest annual total since the survey began.
That doesn’t mean every equipment purchase makes financial sense. It does show that businesses continue to find opportunities where investment is justified despite a more complicated economic environment.
Equipment financing and equipment leasing can play an important role in those decisions by allowing companies to align the cost of an asset more closely with the period in which it is being used to generate value.
The latest data suggests businesses aren’t simply waiting for perfect conditions. They are continuing to invest where the economics support it – and equipment financing remains an important part of making those investments possible.
Ready to Explore Your Financing Options?
If your business is planning an equipment purchase or evaluating financing options, Fidelity Capital can help you explore a structure that fits your needs.
Get Prequalified: Complete our simple online prequalification form to see what financing options may be available to your business.
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Disclaimer: This article is provided for general informational and educational purposes only. It may reference or incorporate information reported by third-party news organizations, financial publications, industry sources, and other publicly available sources. Fidelity Capital Partners, LLC does not independently verify all third-party information referenced, and such information may be incomplete, subject to revision, or change over time. Any analysis or commentary provided by Fidelity Capital Partners, LLC reflects our interpretation of the information available at the time of publication, including its potential relevance to equipment financing, leasing, capital planning, and related business decisions. Nothing in this article constitutes financial, legal, tax, investment, or other professional advice, nor does it constitute an offer or commitment to provide financing.
