ELFA Reports Improved Equipment Finance Outlook for 2026

The Equipment Leasing & Finance Association (ELFA) reported improved confidence in the equipment finance market in May, signaling stronger expectations for business conditions and capital spending in the months ahead.

ELFA’s May 2026 Monthly Confidence Index (MCI) increased to 59.9, up from 54.6 in April. The survey reflects executive sentiment across the $1.3 trillion equipment finance industry and tracks expectations related to financing demand, access to capital, hiring and economic conditions.

Survey results showed growing confidence in demand for equipment financing tied to capital expenditures. Approximately 26.1% of respondents expect demand for leases and loans to increase during the next four months, compared to 10.5% in April. Nearly 74% expect demand to remain stable, while no respondents forecast a decline.

Business outlook also improved. More than 27% of executives expect business conditions to improve over the next four months, up from 11.8% in April, while fewer respondents anticipate worsening conditions.

The survey found that access to capital is expected to remain stable, with 78.3% of respondents predicting no change over the next four months. About 17.4% expect increased access to capital, while 4.4% foresee less access.

Looking ahead, 30.4% of executives believe U.S. economic conditions will improve over the next six months, while nearly half expect conditions to remain unchanged.

Industry leaders cited continued uncertainty around inflation, fuel prices and market volatility but noted ongoing strength in financing activity.

“The first quarter was a solid start to the year in terms of new business volume with reasonable yields. Small business appears to be stressed as illustrated by materially increased Chapter 11 bankruptcy filings year over year. This is validated by slight increases in delinquency and normalized credit charges in this specific segment. I expect this to continue for much of 2026. With that said, volume and overall performance are strong and I expect Wintrust Specialty Finance will have a strong year in 2026 as illustrated by the start in Q1,” said David Normandin, CLFP, president and chief executive officer, Wintrust Specialty Finance.

James D. Jenks, CEO of Global Finance and Leasing Services, LLC, said, “The blockade of the Strait of Hormuz is having the effect of driving up fuel costs. The small and mid-sized businesses that don't have the ability to pass along the higher costs are having the biggest challenge in managing their cash flow as a result.”

ELFA said the confidence index is based on a qualitative survey of executives throughout the equipment leasing and finance sector.