ELFA - Equipment Leasing and Finance Association - Equipping Business for Success

About

Industry Overview

Equipment leasing and finance is a $1 trillion industry that helps all types and sizes of commercial businesses, non-profits and government organizations acquire the equipment they need to operate.

Characterized by its creativity, flexibility and innovation, the equipment finance industry is responsible for financing a substantial portion of the nation's capital expenditure budget, as well as the export of U.S. manufactured products. The three main sources of equipment finance funding are captives, independent lenders and bank-affiliated lenders who offer a wide range of financial products and strategies, and are engaged in originations and primary and secondary market financing activities.

Equipment finance companies offer flexible choices that can work with the diverse objectives of most organizations as they make their best procurement decisions based on numerous factors, such as cash flow, balance sheet impact and available credit lines.

Economic Contribution of the Equipment Finance Industry

Equipment finance not only contributes to businesses’ success, but to U.S. economic growth, manufacturing and jobs. Nearly 8 in 10 U.S. companies (79%) use some form of financing when acquiring equipment, including loans, leases and lines of credit (excluding credit cards).

In 2021, a projected $2 trillion was invested by U.S. businesses, nonprofits and government agencies in plant, equipment and software. Approximately 57%, or $1.16 trillion of that investment, was financed through loans, leases and lines of credit. America's equipment finance companies are the source of such financing, providing access to capital.

Of the total market for financing in 2021, banks accounted for 53% of financed acquisitions, manufacturer or vendor financing accounted for 17%, and independents and fintechs each comprised 14%.

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

  • Agricultural equipment
  • Aircraft
  • Business, retail and office equipment
  • Construction and off-road equipment
  • IT equipment and software
  • Manufacturing and industrial machinery
  • Medical technology and equipment
  • Mining machinery
  • Rail cars and rolling stock
  • Trucks and transportation equipment
  • Vessels and containers

Knowledge Hub

Looking for more data, benchmarking and other resources concerning the equipment finance sector? Visit our Knowledge Hub for a range of industry information, including:

Industry History

Learn more about the history of ELFA and the equipment finance industry on the history page.