Rita E. Garwood,
Editor in Chief,
Monitor

Brianna Wilson,
Managing Editor,
Monitor

Although the vendor channel experienced growth in 2023, its 6% rate of growth was significantly lower than the rates achieved in the past two years of 14.6% and 10.9%, respectively. The top 40 companies reported nearly $54.6 billion in vendor-dealer channel originations, an increase of nearly $3.1 billion (6%) year over year.

The group was split evenly between reported increases and decreases in vendor channel originations, with 20 companies reporting a collective increase of $6,063.7 million and the remaining 20 reporting a collective decrease of $2,977.4 million. This resulted in a net increase of $3,086.3 million for the top 40.

THE TOP FIVE
DLL USA once again maintained its rank as the No. 1 vendor finance company, reporting nearly $17.2 billion in 2023 vendor finance originations, a $2,489.0 million (17%) increase from 2022. Wells Fargo Equipment Finance also retained its position as No. 2 in the ranking with $8,204.8 million in vendor originations, an increase of $1,194.8 (17%) from the previous year. Bank of America Global Leasing and PNC Equipment Finance switched spots, with Bank of America ascending to No. 3 and PNC dropping to No. 4. Bank of America reported a $679.4 million (24.9%) increase, bringing its total vendor channel origination to $3,410.2 million, while PNC reported a $324.6 million (10%) decrease. U.S. Bank retained its No. 5 rank despite posting a $159.5 million (6.3%) decrease.

TOP DOLLAR GAINERS
The ranking’s top three companies also achieved the feat of being this year’s top dollar gainers. DLL achieved the largest dollar gain increase in vendor channel volume: nearly $2.5 billion year over year. Wells Fargo reported the second-highest dollar gain of $1,194.8 million year over year. Bank of America reported a year-over-year increase of $679.4 million, making it the No. 3 top dollar gainer in vendor channel volume. New to the ranking this year, MMP Capital reported a dollar gain of $303.0 million, up from zero activity in the vendor channel last year. Rounding out the top five dollar gainers, PEAC Solutions reported a $216.2 million increase, catapulting its overall ranking from No. 23 in 2022 to No. 18 in 2023.

HIGHEST PERCENTAGE INCREASES
Dext Capital, ranked No. 27 in a tie with MMP Capital, achieved the highest year-over-year percentage increase of 69.9% in vendor volume. New to the ranking this year, No. 36-ranked F.N.B Equipment Finance reported the second-highest percentage gain of 68.8%, increasing its vendor volume to $172.5 million in 2023. PEAC Solutions reported a 63.5% increase. No. 25-ranked Crossroads Equipment Finance achieved a 44.2% increase, with vendor originations of $342.1 million in 2023, bringing it up five spots from No. 30. Byline Equipment Finance, which moved up the ranks to No. 26, achieved a 29.3% ($72.7 million) increase, elevating its vendor volume to $321.0 million in 2023.

SEGMENT COMPOSITION
As a group, U.S. Bank Affiliates, representing 23 of the 40 companies, contributed $28,611.9 million (52.4%) of the total vendor volume reported by the group. If you remove the top two banks — Wells Fargo and Bank of America — the remaining banks posted a collective year-over-year decline of $1.3 billion (-7.3%). The four Foreign Affiliates contributed $19,324.7 million (35.4%), while the 11 Independents contributed $5,433.3 million (10.0%). The remaining $1,202.7 million (2.2%) came from the two Captives in the ranking.

NEW ARRIVALS
New to the ranking this year are:
• No. 13-ranked Dell Financial with $785.2 million in vendor volume
• No. 27-ranked MMP Capital with $303.0 million in vendor volume, tied with Dext Capital
• No. 36-ranked F.N.B Equipment Finance with $172.5 million in vendor volume
• No. 37-ranked AP Equipment Financing with $160.0 million in vendor volume
• No. 40-ranked Oakmont Capital Services with $141.8 million in vendor volume

DEPARTURES
Since the last time we published this report, TIAA Bank has been rebranded as EverBank, ranking No. 10 with $1,366.0 million in vendor volume. Signature Financial is now operating as No. 31-ranked Flagstar Financial & Leasing with $210.2 million in vendor originations. Departing from the list this year are Alliance Funding Group, Arvest Equipment Finance, Continental Bank, Pawnee Leasing and Stearns Bank, which contributed a collective $1,173.1 million to the overall 2022 top 40 vendor volume.

CONCLUSIONS
The vendor channel continued its upward trajectory this year, though at a slower pace than the previous two years. The top 40 companies achieved a year-over-year percentage gain of 6%, close to half the percentage gains achieved by the group in the last two years. Excluding the top three vendor players, the remaining 37 companies posted a net decline of nearly $1.3 billion (-4.7%).

While banks continue to dominate the vendor channel collectively, the top two banks — Wells Fargo and Bank of America — account for more than 40% of bank activity in the channel. The remaining 21 banks posted a collective year-over-year decline of $1.3 billion (-7.3%).

The Monitor team thanks all the companies that participated in the vendor ranking; this annual event would not be possible without their cooperation. As a reminder, the Monitor 100 came early this year — head over to monitordaily.com to check out the digital version or contact Terry Mulreany at [email protected] to purchase a print version.

BASIS FOR RANKINGS
The rankings and data in this report were derived from equipment finance companies, which provided information on funded 2023 volume from vendor- and/or dealer-related relationships to qualify for inclusion in the vendor channel rankings. Many Monitor 100 participants originate new business volume from more than one source, but this aspect of our annual rankings is unique to the vendor channel. •

Rita Garwood is editor in chief of Monitor and Brianna Wilson is managing editor of Monitor.