U.S. Business Borrowing for Equipment Rises 5.7% in October, Says ELFA

Post by : Saif

Business borrowing in the United States continued to grow in October, showing that companies are still confident about investing in new equipment even with recent economic challenges. According to the Equipment Leasing and Finance Association (ELFA), borrowing for equipment rose 5.7% in October compared to the same month last year.

Companies signed new loans, leases, and credit lines worth $10.5 billion in October. This amount was the same as the previous month on a seasonally adjusted basis. The rise in borrowing suggests that the short government shutdown did not have a major impact on corporate investment decisions.

The ELFA report also shows that 2025 is on course to become the second-strongest year for equipment spending since the start of its CapEx Finance Index survey in 2006. The strong growth reflects steady demand across industries such as manufacturing, technology, and transportation.

Banks played a major role in October’s growth, adding $4.8 billion in new business volume. This shows that financial institutions are continuing to support business expansion and investment despite questions about the future path of interest rates.

ELFA President and CEO Leigh Lytle said that while interest rates remain uncertain, the equipment financing industry is in good financial health. This strength, she added, positions the sector for a solid beginning to 2026. Strong investment levels show that companies continue to see long-term value in improving and upgrading equipment, machinery, and technology.

The ELFA CapEx Finance Index is based on data from 25 major industry participants. These include Bank of America, Caterpillar, Dell Technologies, Siemens, Canon, and Volvo. Together, these companies help track activity in a U.S. equipment finance market valued at over $1 trillion.

In addition, the Equipment Leasing & Finance Foundation, which is associated with ELFA, reported that business confidence levels in November remained stable. Its confidence index stood at 59.9, just slightly below 60.1 in October. An index reading above 50 means that businesses expect a positive financial outlook.

Overall, the October results show that U.S. companies are not slowing down their investment plans. Businesses continue to borrow and spend on equipment, signaling trust in future growth and steady activity across key economic sectors. If this pace continues, the equipment finance market may end the year as one of the strongest in almost two decades.

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