The equipment finance industry closed out 2024 on a strong note and is well-poised to handle uncertainty surrounding federal policy moving into 2025. For the third 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. Bank lenders also significantly increased their market share, surging up by 36.2% in December, the largest increase on ELFA record. The industry’s positive outlook was reflected in the ELFA Monthly Confidence Index, a survey of key industry executives, which marked its three-year high in Q4 2024.

The ELFA Monthly Confidence Index, a qualitative measure of industry sentiment, reached a three-year high in Q4 2024. Improving business conditions, an increase in demand for capital expenditures funding, and the potential for policy changes regarding industry regulation and expense deduction contributed to this optimistic outlook.