Industry Overview

Equipment Finance: A Dynamic and Growing Sector

Companies that provide the means for equipment acquisition and finance are contributing to the economy through the utilization and investment in capital goods and are the driving force behind the growth in the commercial equipment finance market, contributing to capital formation in the U.S. and abroad.

Equipment finance companies are responsible for financing a substantial portion of the nation's capital expenditure budget through a multitude of financial products and strategies and are engaged in originations and primary and secondary market financing activities.

The Economic Contribution of the Equipment Finance Industry

Each year American businesses, nonprofits and government agencies invest in excess of $1 trillion in capital goods and software (excluding real estate) of which 55% or $600 billion is financed through loans, leases and other financial instruments. America's equipment finance companies are the source of such financing, providing access to capital. Investment in plant and equipment impacts every sector of the economy, including the manufacturing, energy, transportation, services, agriculture, healthcare and government sectors. Equipment finance companies also finance the export of U.S. manufactured product abroad.

ELFA members finance the acquisition of all types of capital equipment and software including:

  • Manufacturing and mining machinery and equipment
  • Vessels and containers
  • Construction and off-road equipment
  • Medical technology and equipment
  • Commercial and corporate aircraft
  • Rail cars and rolling stock
  • Trucks and transportation equipment
  • Business, retail and office equipment
  • IT equipment and software

MLFI-25: Monthly Leasing and Finance Index

The Equipment Leasing and Finance Association's (ELFA) Monthly Leasing and Finance Index (MLFI-25) reports on equipment finance activity such as New Business Volume, Aging of Receivables, Net Investment at Risk, Average Losses, Credit Approval Ratios, and Total Number of Employees.

Ask An Expert

Want to know more? Ask an Expert:
Bill Choi bchoi@elfaonline.org 202.238.3413 or
Ralph Petta rpetta@elfaonline.org 202.238.3430