The latest CapEx Finance Index (CFI), released by the Equipment Leasing & Finance Association (ELFA), shows that while new deal growth edged down again in April, activity is still on pace for its best year on record. Financial conditions strengthened in the latest data, bolstering balance sheet resilience. That should help dampen any headwinds that may arise from continued conflict in the Middle East or changing monetary policy dynamics.
Total new business volume (NBV) among surveyed ELFA member companies was $10.6 billion on a seasonally adjusted basis. Year-to-date NBV rose by 15.0% relative to the same period in 2025. Year-over-year, NBV increased by 9.6% on a non-seasonally adjusted basis.
“The April CFI data showed some cooling in equipment demand, but conditions in the sector remain strong,” Leigh Lytle, president and CEO of ELFA, said. “New business volume growth slowed a tad, but demand is still above what we saw for most of last year. The surge in demand from AI-related deals appears to be outweighing geopolitical tensions at the moment, but I’ll be keeping a close eye on the May report for signs of further easing. Financial conditions remain healthy, and I don’t expect higher treasury rates or Fed policy to change that anytime soon.”
Demand is cooling from a high level. Total NBV was $10.6 billion in April, a contraction of 1.1% from the previous month. The total new volume series tracks the amount of new activity added by banks, independents and captives in a given month. While the total new volume series declined for a third consecutive month, April activity was still above the average monthly pace of $10.3 billion in the second half of last year. Equipment demand is still on pace for its strongest year ever in 2026.
Small ticket volume growth tracks broader economic conditions and is an important barometer of aggregate demand for equipment. Small ticket deals grew by $3.6 billion, up 8.7% from March. Year to date, small ticket deal activity is up 39.8% from the same period in 2025.
Activity at banks rose by $5.4 billion, one of the highest single months on record. Activity at captives and independents were up 5.3% and 5.9%, respectively.
Credit approvals remained healthy. The industry-wide average edged down to 77.1% in April, a 0.1 percentage-point decline. The average small ticket approval rate rose by 1.3 percentage points to 81.1%. The cumulative increase in small ticket approvals over the last two months offset a sharp February decline. The rate at banks and independents dropped by 0.2 and 2.7 percentage points, respectively, while the rate at captives rose 2.7 percentage points.
Overall delinquency and loss rates fell. The overall delinquency rate dropped to 1.8% in April, matching its low over the last two years. The rate at banks dropped by 0.54 percentage points, while the rate at captives and independents both rose.
The overall loss rate decreased by 0.09 percentage points to 0.54%. The average loss rate for small ticket deals also dropped by the same amount to 0.84%. The rate at banks and independents both dropped, while the rate at captives edged up modestly.
Industry Confidence: The Monthly Confidence Index tracks the sentiment of executives in the industry. The index in May is 59.9, an increase from 54.6 in April.
“This past quarter, we’ve seen a clear shift: global economic changes and changing expectations mean businesses and municipalities are being incredibly deliberate with their capital,” Dominic Janney, president of Canon Financial Services, a wholly-owned subsidiary of Canon U.S.A., said. “They’re cautious, and rightly so. But postponing critical equipment upgrades poses a massive risk to staying competitive. As financing partners, we must step up. That means deepening our client relationships, staying agile on pricing, and building customized, flexible solutions. If we can remove capital as a barrier, we empower our clients to navigate these external pressures and confidently invest in their future.”
Technical Note: New business volume data are concurrently seasonally adjusted each month to capture the latest seasonal patterns. Data in previous months and years may change due to updated seasonal factors.
