Equipment Finance Hits Record $1.51 Trillion
Businesses buying equipment and software increasingly finance purchases to manage cash flow, with health care leading adoption.
Updated on Nov. 3, 2026 in Corporate Finance
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The Equipment Leasing & Finance Association reported that the U.S. equipment finance industry reached an estimated $1.51 trillion in 2025, a new all-time high. For operators, the report signals that financing remains a core capital tool across equipment-intensive sectors.
Why it matters
Financing use rose as businesses sought to optimize cash flow, with 72% of end-users citing that reason. The shift matters for operators weighing lease versus purchase decisions as equipment and software spending continues to grow.
The industry grew 8.7% from 2024 to an estimated $1.51 trillion, while the share of end-users using financing rose from 82% to 87%. Medical equipment led all categories at 82% financed, and health care was the most financing-reliant industry at 80%.
The players
Equipment Leasing & Finance Association (ELFA)
A trade association representing the equipment finance industry, which conducts the industry's biennial end-user survey and publishes its size estimates.
The details
ELFA estimated the industry size by applying a financed share of approximately 55.2% to the $2.7 trillion in nominal equipment and software investment reported by the Bureau of Economic Analysis. The report draws on a biennial survey of end-users conducted in summer 2026. Computers were among the least-financed categories despite being the fastest-growing investment area amid the AI buildout, which slightly reduced the overall propensity to finance.
Timeline
2024: prior-year baseline for industry growth and financing comparisons
2025: equipment finance industry reached $1.51 trillion in size
October 26, 2026: Industry Horizon Report released
Market Landscape
ELFA's survey series, which began in 2007, gives the industry a long-run record of financing behavior against which the 2025 figures can be measured. The 8.7% growth and rising financing share show the industry continuing an expansion that the association has tracked since its first survey.
Operators planning equipment or software purchases should compare financing terms against outright purchase, particularly given that cash flow optimization was the leading reason for financing. Businesses in health care and those acquiring medical equipment should expect financing to remain a standard acquisition path.
The takeaway
Financing is now used for the large majority of equipment and software acquisitions, so operators should evaluate lease and loan structures as a routine part of capital planning. Consult a qualified accountant to determine how financing affects your own tax and cash flow position.
Further reading
For broader context on how firms fund capital purchases, see Corporate Finance coverage.
Source note: This article includes information reported by Textile World.
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