ELFA: Q1 2026 Posts Strongest Quarter on Record — March $10.8B, YTD +18.6%; Confidence Index Slips to 54.6

Author: Sedat Onat

ELFA Equipment Leasing & Finance Association Leigh Lytle John Paradisi Libertas Funding Q1 2026 equipment leasing MCI-50 small ticket supply chain

U.S. warehouse and equipment imagery, illustrating ELFA's record $10.8 billion Q1 2026 equipment volume

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Equipment demand remains strong even as economic uncertainty builds. According to a new report from the Equipment Leasing & Finance Association (ELFA), total new business volume hit $10.8 billion in March on a seasonally adjusted basis. Slightly down from February, it still helped push the first quarter to the highest level on record. New business volume is up 18.6% year-to-date and 12.5% vs March of last year.

Leigh Lytle, President and CEO of ELFA, said: "Geopolitical tensions and economic uncertainty appear to have hit another gear in 2026, but demand for equipment has so far been unaffected." New business volume growth slowed modestly in March, but the industry just experienced its strongest quarter ever. The full economic impact of the Middle East conflict has not yet hit the data; Lytle said some deterioration heading into summer would not be surprising. Monthly volume dipped 1.8% from February, and the headline index has now declined for two straight months. Small ticket volume totalled $3.4 billion in March, down 17.7% from February.

Activity across lenders was mixed. Banks and independents saw a slight increase in volume, while captives were mostly flat. Credit is holding steady; approval rates edged up to 77.2%. Delinquency and loss rates both moved higher but remain in line with recent averages. The industry's confidence index fell to 54.6 in April, its lowest level in nearly a year.

John Paradisi, CEO of Libertas Funding, said: "Tariffs may have stalled decision-making in 2025, but 2026 is all about execution." He noted strong activity in construction, healthcare and manufacturing, with businesses moving on expansion projects and equipment upgrades requiring both equipment financing and working capital. Geopolitical uncertainty, including the situation in Iran, continues to pressure supply chains and input costs, making access to flexible working capital even more critical. With borrowing costs elevated, businesses are prioritising speed and access to capital over cost alone.

Key Takeaways:
1. ELFA Q1 2026: strongest quarter on record; March $10.8 billion.
2. YTD new business volume +18.6%; March YoY +12.5%.
3. Monthly volume -1.8%, small ticket -17.7%; headline index has declined for two straight months.
4. Approval rates rose to 77.2%; delinquency/loss rates higher but in line with averages.
5. Confidence index fell to 54.6 in April — its lowest level in nearly a year.