Economic uncertainty, rising demand for flexibility and renewed credit discipline are reshaping the equipment finance industry. Three leaders reveal how their companies are staying agile, focused and ready for what’s next.
From market volatility to evolving customer expectations, 2025 has been anything but predictable for equipment finance professionals. As interest rates fluctuate and AI-driven automation gains ground, the rules of the game are shifting fast. Monitor caught up with three Monitor 101 leader to hear how they’re adapting — what’s working, what’s changing and where they see opportunity amid the noise. Their responses reflect a
shared focus on long-term resilience, client relationships and smart, strategic growth.
What’s the most significant shift you’ve seen in the equipment finance landscape so far in 2025, and how is your company responding?
PAUL FOGLE: The most significant shift in 2025 has been heightened economic uncertainty, driven by global conflicts, shifting policy and continued freight market instability. At Quality Equipment Finance, we’ve responded with intentional restraint. While we remain confident in the underlying strength of the U.S. economy, we’ve taken a measured step back from the over-the-road transportation segment. Our focus remains on consistency across cycles. We are emphasizing stable, diversified sectors and assets rather than reacting to short-term volatility.
DAVID KIVITZ: A focus on structure over speed. After years of frenzied growth and fast capital, credit discipline and thoughtful underwriting are once again center stage. We’ve embraced this shift by doubling down on transparency, credit fundamentals and relationship-based deal sourcing — all while maintaining the speed and flexibility that customers still expect.
PEGGY TOMCHECK: One of the most notable shifts in 2025 has been the growing demand for flexible, usage-based lease models. Customers are seeking greater agility in how they acquire and pay for equipment, aligning costs with actual usage. At the same time, we’re seeing increased adoption of AI-driven automation across the industry to improve operational efficiency and streamline workflows — allowing companies to do more with fewer resources.
Adding to this momentum is a sense of optimism around softening interest rates, which is creating a more favorable environment for capital investment. In response, our company is embracing these changes by expanding our lease offerings to include more customizable, usage-based structures and investing in technology to automate key internal processes — positioning us to better serve clients and scale efficiently in a shifting market.
Which sectors or asset classes are presenting the strongest opportunities for growth right now, and why?
FOGLE: Infrastructure, medical and construction sectors are presenting the strongest growth opportunities. Federal infrastructure funding is fueling demand across construction and related services. Medical and diagnostic equipment is expanding steadily due to demographic trends and continued investment in healthcare. We’re targeting industries with long-term relevance and steady capital needs. These sectors offer resilience, utility and consistent demand despite market volatility. These fundamentals are guiding our growth strategy in 2025.
KIVITZ: We’re seeing strong momentum in manufacturing buildouts and automation-related assets. Supply chain reshoring and labor cost pressures are accelerating investment in equipment that improves operational efficiency and scales production. These assets are typically critical and well-positioned for long-term value, which fits our underwriting thesis.
TOMCHECK: Construction equipment continues to present strong growth opportunities, supported by a more favorable regulatory environment and easing interest rates that make financing more attractive. Additionally, the medical equipment sector is gaining momentum, driven by rising demand for innovative diagnostic technologies and continued investment in healthcare infrastructure. Both areas offer solid long-term potential and align well with current market needs
What are the biggest challenges your organization is facing in today’s economic environment — interest rates, credit quality, competition or something else?
FOGLE: The biggest challenge remains margin pressure. Elevated interest rates over the past couple of years have reshaped borrower expectations somewhat, but yields are being compressed with the cost of funds also increasing. At the same time, competition has intensified, especially in credit tiers that previously saw more pricing discipline. While credit quality remains stable overall, we’re staying vigilant. We’re focused on pricing risk appropriately, managing funding costs and leaning into sectors with durable fundamentals. In this environment, disciplined execution matters more than ever.
KIVITZ: With the passing of the “Big Beautiful Bill,” we expect to see renewed Capex spending, but the cost of capital remains a meaningful headwind. Many customers are weighing equipment financing against their balance sheets, creating a more nuanced sales cycle. We’re addressing this by offering flexible solutions that align with their cash flow while emphasizing the strategic benefits of preserving working capital.
TOMCHECK: Our primary challenges center around enhancing technology systems and internal resources to improve both the customer experience and operational efficiency. As market expectations shift toward digital convenience and speed, we’re focused on modernizing platforms to streamline workflows and deliver a seamless, user-friendly experience.
At the same time, we are actively working to recruit and build a high-performing direct sales management team. This is critical to fully leverage our strategic business model, which emphasizes long-term relationships and customized financial solutions.
Scalability also remains a key challenge, particularly in delivering high-touch, tailored solutions at a broader level. Balancing personalized service with operational growth requires continual investment in systems, people and processes.
How are your customers’ needs evolving, and what adjustments are you making to better serve them?
FOGLE: Customers are asking for greater flexibility, whether in terms, structures or speed. Many face delayed projects, tighter budgets or cautious expansion. In response, we’ve streamlined credit decisioning, enhanced documentation processes and invested in technology and AI to improve responsiveness and risk assessment. We’re also leaning into relationship-based lending to better anticipate long-term needs. In today’s environment, adaptability is essential, and we’re evolving to meet customers where they are, faster and smarter.
KIVITZ: Customers today expect more than just capital — they want strategic partners who understand the complexities of their operations. We’re spending more time upstream in the financing conversation, helping clients plan around timing, project risks and how XS can assist their business goals for long-term growth.
TOMCHECK: Our customers continue to prioritize relationship-based engagement, valuing a trusted advisor approach over purely transactional interactions. In an increasingly complex and fast-moving environment, personalized guidance and long-term partnership remain key differentiators in the technology leasing space.
We’re also seeing heightened demand for predictability, flexibility and efficiency. Clients are seeking leasing solutions that offer transparent, consistent costs along with options for upgrades and scalability. In response, we’re adapting by enhancing our consultative services, offering more flexible structures and investing in tools that improve speed and simplicity — while maintaining the high-touch support that fosters trust and long-term value.
Are you seeing any new entrants or competitive shifts in the market that are changing the game for Monitor 101-sized players?
FOGLE: Yes. Banks are cautiously re-entering while new private equity-backed players aggressively pursue niche segments, driving pricing and structural competition. Some chase yield, others push volume, creating challenges for Monitor 101-sized players. However, independents with strong relationships, deep asset knowledge and disciplined credit practices are well-positioned to win. Consistency across cycles, operational agility and tailored deal structuring allow independents to thrive even as others shift in and out of the market. This helps maintain client trust.
KIVITZ: Yes. The flood of new capital into private credit and structured finance has created more noise and more competition for yield. That said, many of these new entrants are chasing the same opportunities, leaving gaps in overlooked industries or niche asset classes. We’re finding success by staying disciplined and going where others aren’t focused.
TOMCHECK: Yes. We’re seeing continued expansion of captive finance and OEM-backed programs that increasingly embed financing directly into their sales processes. While these models offer speed and scale, they often rely on standardized, one-size-fits-all structures.
This presents both a challenge and an opportunity for Monitor 101-sized players. Unlike captives, we offer a more flexible, consultative approach — tailoring solutions to meet the unique needs of our clients. Our ability to customize and adapt remains a key competitive advantage in a market where many larger players prioritize efficiency over personalization.
Looking ahead to the rest of 2025, what’s your outlook for the industry, and what’s one move you’re making to stay ahead?
FOGLE: We expect a steady but cautious second half of 2025. While macro uncertainty remains, credit fundamentals are holding. Our strength lies in flexibility and true independence. With a single-owner structure and no outside investors, we can prioritize long-term success over short-term gains. We’re investing in technology and AI to enhance risk insights and speed while staying relationship-focused. In a market shaped by change, agility, vision and consistency will set the leaders apart.
KIVITZ: We’re cautiously optimistic. While macro uncertainty remains, CAPEX demand is showing signs of life, especially in sectors driven by infrastructure, automation and energy. Our move has been to lean into overlooked, less-trafficked opportunities with strong fundamentals and to deepen our relationships with originators and borrowers who value a partner that brings more than just capital.
TOMCHECK: The outlook for the industry remains positive. I anticipate a more favorable regulatory environment as compliance pressures begin to ease, alongside continued growth in electronic documentation and digital workflows that enhance efficiency and customer experience.
To stay ahead, we’re focused on advancing our asset-sharing pool model within the higher education sector. By facilitating collaboration among institutions, we’re helping them maximize utilization, reduce costs and make more strategic use of limited resources — delivering greater value through collective access to technology and equipment. •
