Equipment finance grows, and AI moves into underwriting

Two reports from the Equipment Leasing and Finance Association (ELFA) published in October describe an industry that is growing and putting AI to work.

The Survey of Equipment Finance Activity, released October 14 and covering nearly 100 leasing and finance companies, found that new business volume grew 6.8% in 2025, up from 3.1% in 2024. Portfolios stayed healthy: 98.5% of receivables were current, and gross charge-offs were 68 basis points. Employment fell 1.0%, which ELFA attributes to investment in technology. Respondents had put AI to work most often in sales (43%) and credit underwriting (41%), and most were exploring it for billing (65%) and asset management (60%).

The Industry Horizon Report, released October 26, puts the industry at an estimated $1.51 trillion in 2025, up 8.7%, with leases accounting for 23% of equipment and software acquisitions. Among end-users, 82% said they would use a fully digital platform to manage equipment acquisition, and the features they valued most were real-time application tracking, online document upload and verification, and electronic signatures. Only 5% primarily deal with their financing provider through a mobile app.

What it means for data: AI in underwriting, billing and asset management works from the lessor’s own records, so its output is only as good as the customer, contract and asset data behind it. Billing needs every schedule tied to the right lessee and asset. Asset management needs serial numbers, locations and return conditions that match the contract. Digital onboarding needs each uploaded document linked to a verified customer record. In our experience, lessors that grew through acquisitions or several origination channels hold the same customer in more than one system, so that is the record to master before AI reaches billing or underwriting.