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 … [Read more...]

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 … [Read more...]

The equipment finance industry closed its first deal in the second quarter of 2024, despite the current interest rate levels. Although charge-offs remained elevated compared to pre-COVID figures, the persistently low delinquency rates suggest that charge-offs may return to more typical levels in the coming months. With both economists and Jerome Powell indicating that rate cuts are likely later this year, the equipment finance industry could experience some prosperous coming quarters. The steady trends in the equipment finance industry drove the small month over month variances in ELFA’s Monthly Confidence Index, which surveys key industry executives. … [Read more...]

Deal volume picked up slightly in the first quarter of 2024, as portfolios continue to reset to current interest rate levels. While charge-offs remained higher than normal compared to pre-Covid figures, the decline in delinquencies indicate charge-offs are likely to return to more normal levels in the upcoming months. Lenders also remain optimistic that the Fed will cut rates in Q4 of this year, reversing interest rate compression on their portfolios. The positive trends in the equipment finance industry drove an increase in ELFA’s Monthly Confidence Index, which surveys key industry executives. … [Read more...]

Deal volume was sluggish in the back half of 2023, with many portfolios yet to reset to the elevated interest rate environment. With charge-offs increasing 0.8% compared to the previous quarter, paired with the 4.9% year-over-year decrease in new business volume, these indicators could point to a downward trend in the industry for the coming year. Predictions of the Fed not cutting rates and the ongoing economic uncertainty continue to pose headwinds for the industry, but independent lenders reported continued demand from borrowers seeking flexible financing alternatives as banks maintain tighter credit standards. The ELFA’s monthly survey of key industry executives reported a decrease … [Read more...]

Deal volume was sluggish in Q3 2023, decreasing 1.3% quarter-over-quarter, with many portfolios yet to reset to the elevated interest rate environment. Charge-offs remain higher than previous years, but the slight drop this quarter was a promising sign for the sector after significant increases in recent quarters. Liquidity concerns arising from high interest rates and ongoing economic uncertainty continue to pose headwinds for the industry, but independent lenders reported continued demand from borrowers seeking flexible financing alternatives as banks maintain tighter credit standards. The ELFA’s monthly survey of key industry executives reported a slight rebound of industry … [Read more...]

Despite rising rates and associated economic headwinds, new business volume was robust in the 2nd 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. … [Read more...]

Despite rising interest rates and enhanced macroeconomic uncertainty related to recent developments in the broader banking system, new business volume in the first quarter held strong, with cumulative year to date new business volume up 4% as compared to 2022. Industry leaders are impressed with the resilience of the equipment finance sector, which stands to benefit from the unique opportunity of assisting financially pressured customers with liquidity preservation. Inflationary pressures and concerns about the Federal Reserve’s future monetary policy actions remain material industry headwinds. We expect a dampening in industry confidence and data in Q2 as a result of continued bank failures … [Read more...]

Despite rising interest rates and continued economic volatility, new business volume in the fourth quarter held strong, up 9.3% year-over-year. Industry leaders across banks and independent financing institutions are impressed with the resilient growth exhibited by the equipment finance sector. Inflationary pressures and concerns about the Federal reserve’s monetary policy stance remain material industry headwinds into the new year. The Equipment Leasing & Finance Foundation measures confidence among industry leaders every month. Following a continued decline in 2022, sector confidence among industry leaders bottomed out in October at 43.7. Shortly thereafter, sentiment amongst … [Read more...]

Despite rising interest rates and continued economic volatility, new business volume in the third quarter was resilient, up eleven percent year-over-year. However, leaders across banks and independent financing institutions are cautiously optimistic for the remainder of 2022 with goals to expand portfolios. Inflationary pressures and supply chain concerns remain material industry headwinds into the fourth quarter. The Equipment Leasing & Finance Foundation measures confidence among industry leaders every month. Following a continued decline in 2022, sector confidence among industry leaders bottomed out in July at 46.1. The cautious optimism of industry operators is supported by the … [Read more...]

New business volume in the second quarter experienced very marginal impacts, down only one percent year-over-year,  despite rising interest rates and continued economic volatility. However,  leaders across banks and independent financing institutions have optimistic outlooks for the remainder of 2022 with goals to expand portfolios. Inflationary pressure and supply chain challenges continue as industry headwinds into the third quarter. The Equipment Leasing & Finance Foundation measures confidence among industry leaders every month. Following a continued decline in 2022,  sector confidence among industry leaders experienced a slight increase month-over-month from 49.6 … [Read more...]

Despite rising interest rates and economic volatility, the Equipment Finance sector maintained strong performance in the first quarter of 2022 with year-over-year originations growth of 14%. Banks and independent financing institutions continue to expand portfolios through originations and acquisitions. However, inflationary pressures, global conflicts, and supply chain challenges remain headwinds for the remainder of 2022. M&A activity continued at a robust pace in 2022, with nine M&A deals announced in the first quarter of 2022. Banks are actively seeking equipment leasing & finance platforms. … [Read more...]

This Quarter Report analyzes data from the fourth quarter of 2021.M&A activity continued at a robust pace in late 2021 and into the first part of 2022. Banks are actively seeking equipment leasing & finance platforms. In recent years, Colonnade has been the sell-side or buy-side M&A Advisor in several equipment finance transactions. These complex transactions require an investment banking team with deep industry knowledge, insider level mastery, competitive positioning, and buyer relationships. … [Read more...]

Welcome to the quarterly update for the Equipment Finance industry. Colonnade is a leading financial advisor to the Equipment Finance industry, having advised on several M&A transactions in recent years. This Quarter Report analyzes data from the third quarter of 2021. The Equipment Finance industry covers a variety of businesses that provide lease financing solutions collateralized by equipment. Our quarterly update focuses on commercial equipment finance within the U.S. … [Read more...]