Despite rising rates and associated economic headwinds, new business volume was robust in the 2^nd quarter, up 11.1% from Q1 2023 and nearly returning to prior year levels. Banks have begun tightening senior credit facilities, creating demand for supplemental capital from equipment finance operators.

The Equipment Leasing & Finance Foundation measures confidence among industry leaders every month. Industry confidence continued to fall in April and May as rate hikes and banking crisis-related uncertainty dampened industry sentiment. Sector confidence rebounded to 44.1 in June as the banking sector stabilized and the Fed elected to hold the Federal Funds Rate steady.