Washington, DC, Nov. 10, 2026 – The Equipment Leasing & Finance Association (ELFA) today released “Business Identity and Fraud in Equipment Finance: 2026 Survey Findings,” its inaugural benchmark of how equipment finance companies verify the businesses that apply for credit and the fraud they encounter along the way. Produced in partnership with Trust2Connect, the survey asked fraud and risk professionals how they perform know-your-business (KYB) checks, what they require before approving an applicant, what the process costs, and how it affects booking rates.
The report finds that most companies still review the majority of applications manually, with risk teams tracking down information to complete KYB checks in under one hour. Fraud remains the top concern, and 76% of respondents say better fraud detection would deliver the most value. Combined with manual identity checks, the results show the industry is in the early stages of its journey to automate KYB and fraud checks.
Key metrics from the report are as follows:
- Manual work is the norm. 69% say a person must step in on more than half of their applications.
- Approved deals slip away. 67% say more than a quarter of approved deals never book.
- Third-party fraud is the most common type. 90% have seen third-party fraud, where someone poses as a real business with a stolen or fake identity.
- More vendors have not fixed it. 52% use three or more data or tech providers to verify a business, and many still review most files by hand.
“Our members have consistently told us that automation and fraud continue to be two of their operational challenges, and we wanted an objective picture of where the industry stands,” said James Cress, Acting President & CEO of ELFA. “This survey shows that our members are continue to be vigilant and focused on getting even better at stopping fraud. This continuing effort will help members benchmark their performance when it comes to the speed of these checks and the strength of their fraud detection efforts.”
“Equipment finance teams told us what we hear every day. They’re stitching together too many data sources and muscling through manual checks to get apps done in under one hour,” said Bill Phelan, Co-founder and CEO of Trust2Connect. “PayNet was all about digitizing credit checks and safely allowing capital to flow to small and medium sized businesses. Identity and fraud checks remain a limiting factor, as the Business Identity & Fraud Report shows.”
The report is part of ELFA’s ongoing work to give members the data they need to benchmark performance and improve operations. In addition to the survey results, it includes a benchmarking table so companies can see how their processes compare with industry peers, along with practical steps for improving KYB and fraud checks. The full report is available at https://www.elfaonline.org/research/business-identity-and-fraud-in-equipment-finance.
About the Survey
ELFA conducted the online survey in partnership with Trust2Connect from Sept. 17 to Oct. 5, 2026. The survey was sent to ELFA members and Trust2Connect contacts, and fraud and risk professionals at 42 equipment finance companies responded. Most respondents represent small-ticket lessors. Responses were anonymous, and results are reported in aggregate.
About ELFA
The Equipment Leasing & Finance Association (ELFA) represents financial services companies and manufacturers in the $1.5 trillion U.S. equipment finance sector. ELFA’s over 600 member companies provide essential financing that helps businesses acquire the equipment they need to operate and grow. Learn how equipment finance contributes to businesses’ success, U.S. economic growth, manufacturing and jobs at www.elfaonline.org.
About Trust2Connect
Trust2Connect is a business identity verification company founded by the creators of PayNet. The company provides data on 42 million U.S. private companies, drawn from more than 100,000 sources. Lenders, compliance teams, and risk teams use the Trust2Connect platform to verify business identity and assess business viability. To learn more and get no-cost access, visit www.Trust2Connect.ai.
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Media contact: Jane Esworthy, Vice President, Communications & Marketing, ELFA, [email protected]
