Following a difficult year and a half as rising interest rates compressed portfolio yields, the equipment finance industry accelerated its upswing in Q3 2024 due to the Fed’s recent rate cut. For the second straight quarter, multiple M&A transactions were completed by non-bank financiers, who are looking for additional growth now that portfolios have largely reset to higher interest rates. After the rate cut, bank lenders also significantly increased their market share, growing by 10.9% in September. The industry’s positive outlook was reflected in the ELFA Monthly Confidence Index, a survey of key industry executives, which reached its highest point in nearly three years in Q3 2024.

The ELFA Monthly Confidence Index, a survey of key industry executives, marked its highest point in nearly three years in Q3 2024, driven by the promise of additional rate cuts, an increase in bank originations, and renewed M&A activity.