The March CapEx Finance Index (CFI), released last week, reveals new business volumes (NBV) were at their highest level on record, despite ongoing regional tensions in the Middle East.

The CFI is produced by the Equipment Leasing & Finance Association (ELFA) and tracks economic activity across the equipment finance sector. More than eight out of 10 US businesses use at least one form of financing for their commercial equipment acquisitions, making equipment finance industry activity significant for companies across all industries. 

For the March quarter, NBV was up 12.5% year-on-year (y-o-y) and 18.6% year-to-date.

There was a dip in NBV in March, down 1.8% month-on-month to be worth USD10.8 billion, from USD11 billion in February.

“Geopolitical tensions and economic uncertainty appear to have hit another gear in 2026, but demand for equipment has so far been unaffected,” says Leigh Lytle, president and CEO at ELFA. “New business volume growth slowed modestly in March, but the industry just experienced its strongest quarter ever. 

“The full economic impact of the conflict in the Middle East has not yet been felt in the data, so I wouldn’t be surprised to see some deterioration in demand heading into the summer. 

“That said, financial conditions remain healthy, and I’m optimistic that our industry can weather the dual impact of higher prices and a changing of the guard at the Fed [Federal Reserve].”

Small ticket volume growth, which tracks broader economic conditions and is an important barometer of aggregate demand for equipment, grew by USD3.4 billion following the strongest total small deal volume dollar amount ever between December and February. Though March was down 17.7% from February, the dollar amount for the month is just under its trailing 12-month average of USD3.6 billion.

"Tariffs may have stalled decision-making in 2025, but 2026 is all about execution,” explains John Paradisi, CEO of Libertas Funding and among the survey respondents making up the March CFI. “We are seeing strong activity across construction, healthcare, and manufacturing, where businesses are moving on expansion projects and equipment upgrades that require 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. As borrowing costs remain elevated, businesses are prioritizing speed and access to capital over cost alone. 

“Working capital has become the bridge that keeps large-scale projects moving forward on schedule."