Elevex Capital is making waves in the equipment finance industry with its innovative approach to leasing, asset management, and capital markets. Jeffry Elliott, the company’s founder and CEO, sat down with Monitor’s Editor in Chief, Rita Garwood, to discuss the company’s strategy, technology, and the evolving equipment finance landscape.
Rita Garwood: Jeff, Elevex Capital is a brand-new company. You are really excited about this new venture. Can you start by telling us a little about it?
Jeffry Elliott: Absolutely. Elevex launched this January, and we’re building a new kind of leasing company that focuses on advanced technology to create a faster, more transparent process for closing lease transactions and funding capital markets activities. Our strategy is built around three pillars: purchasing and selling transactions, using our own balance sheet to fund deals, and developing a strong asset management capability to truly understand the equipment we finance.
We’re bringing back an old-school leasing approach where we prioritize understanding the assets as much as the credit. We’re also targeting underserved markets, such as oil and gas, renewables, and agriculture. Banks are pulling back from these sectors, and we see an opportunity to step in and provide the financing that businesses in these industries need.
Garwood: What is your strategy for originations?
Elliott: We’re starting with vendor financing, which has always been a key part of equipment finance. This allows us to diversify our portfolio with smaller transactions ranging from $100,000 to $2 million. Over time, we’ll expand into middle-market and large-ticket deals as our equity base grows.
We’re also partnering with banks that don’t have an equipment finance division, particularly community banks. Many of their customers lack good equipment financing options, so this is a strong market for us. In addition, we’ll buy deals in the capital markets and focus on verticals such as transportation, aviation, rail, and marine. Given my investors’ Texas roots, oil and gas will also be an important segment for us.
Renewables and agriculture are two other major focus areas. Renewables, especially distributed generation projects, need funding, but many institutions lack the expertise to structure those deals. Similarly, agriculture financing has become more challenging due to regulatory pressures, and many farm customers are struggling to secure financing. We plan to fill those gaps.
Garwood: You’ve mentioned technology several times. What sets your technology apart from competitors?
Elliott: We’re taking the best aspects of risk assessment and compliance from banking, but applying cutting-edge technology to streamline processes. For example, banks often handle Know Your Customer (KYC) and Office of Foreign Assets Control (OFAC) checks manually. We’re using fintech-driven solutions that search public databases automatically, making the process much faster while still meeting regulatory requirements.
AI will also play a significant role in document review. Instead of spending thousands of dollars on legal fees, AI can instantly compare lease agreements against our standard templates and highlight differences. This accelerates turnaround times and reduces costs. Additionally, we’ll provide our customers with enhanced visibility into their asset portfolios, helping them make better decisions about renewals, buyouts, and returns.
Garwood: You spent over 30 years in banking. What has it been like transitioning to a startup?
Elliott: It’s exciting and refreshing. Banking was good to me, but it has changed a lot over the past decade. Compliance requirements and deposit pressures have made it harder for banks to focus on equipment finance. When Silicon Valley Bank collapsed, banks became even more risk-averse, prioritizing deposit growth over transactions.
At Elevex, we have the flexibility to move quickly and focus on underserved markets. We don’t have to worry about deposit bases or regulatory constraints that slow down larger institutions. That allows us to be more entrepreneurial and responsive to market needs.
Garwood: You mentioned that banks are shifting their approach to equipment finance. How do you see the industry evolving?
Elliott: Banks will always serve their core customers, particularly those with deposits and lines of credit. But when it comes to vendor financing, aviation, rail, and capital markets transactions, I expect them to pull back. Independents like Elevex will step in to fill the void.
I also see banks playing a bigger role as secondary market participants. When their loan portfolios amortize down, they’ll re-enter the market to buy deals from independents instead of originating them directly. It’s a shift back to how things were in the 1980s and 1990s, when banks acted more as capital providers than direct lenders.
Garwood: You’ve spoken about training the next generation of equipment finance professionals. Why is that important to you?
Elliott: The equipment finance industry has been great to me, and I want to give back. I’m building a management team of seasoned veterans who are passionate about mentoring new talent. We’re hiring people who may not have equipment finance experience but have the right mindset and willingness to learn.
A lot of my peers are retiring, and we need to bring in the next generation to keep this industry strong. My goal is to create a lasting legacy by developing future leaders who understand credit, documentation, asset management, and capital markets.
Garwood: Is your senior leadership team in place yet?
Elliott: We’re in the process of bringing people on board. I focused on operations first, so our head of operations should be joining in February. We’re also talking to people from both banking and independent backgrounds. What excites them most is our return to true leasing—understanding equipment and structuring creative deals, rather than just focusing on credit. That’s what we’re building at Elevex.
Garwood: One final question. Everyone is watching the economy closely. How do you see equipment finance being impacted in the coming year?
Elliott: It’s going to be a choppy year. There are a lot of unknowns with the new administration. If tariffs increase, that could disrupt supply chains, particularly in industries like renewables. However, it could also accelerate onshoring, which would be good for equipment finance.
The bigger concern is labor shortages. If immigration policies tighten, and we lose a significant number of workers, that could push us into a recession. Inflation is also a wildcard — some costs might come down, but wages rarely do, which could lead to persistent inflationary pressures.
That said, equipment finance tends to thrive in any economic environment. In a downturn, companies look for financing solutions instead of purchasing equipment outright. In a strong economy, businesses invest in growth. Either way, we’ll find opportunities to serve our customers. Independents like Elevex have the agility to adapt quickly, which gives us an advantage over larger institutions.
Garwood: Thanks for sharing your insights, Jeff. Congratulations on the launch of Elevex Capital — we’ll be watching closely to see how you grow.
Elliott: Thanks, Rita. Looking forward to staying in touch.