Equipment demand stays hot — lenders adapt
The CapEx Finance Index showed elevated new equipment demand in February and lenders — including direct players like Clarus Capital, which surpassed $1B deployed — are leaning into equipment modernization deals with working‑capital cushions. SBA lenders are also underwriting upgrades on projected post‑upgrade cash flows amid supply and energy‑cost pressure. (globenewswire.com) (monitordaily.com) (x.com)
ELFA’s CapEx Finance Index shows total new business volume (NBV) among surveyed members hit $11.0 billion on a seasonally adjusted basis for January–February 2026, with year‑to‑date NBV up 22.2% versus the same period in 2025 and year‑over‑year NBV up 14.2%. (financialcontent.com) The association attributed the acceleration to a surge in activity from independent equipment providers, which ELFA singled out as the primary driver of the February NBV gain. (elfaonline.org) As traditional banks show selective pullback, independents are broadening product sets to pair equipment finance with working‑capital bridges and vendor‑finance options; recent coverage cites independents expanding into lease finance plus working‑capital solutions to capture mid‑market demand. (equipmentfinancenews.com) Clarus Capital’s recent corporate activity shows one liquidity path for scale: the firm has executed equipment securitizations (CLARUS 2024‑1 backed by roughly $280 million of leases/loans) and has upsized targeted lease facilities (a reported $25 million upsized facility for a food‑products client). (equipmentfa.com) SBA policy and lender practice are tightening the bar for upgrade financings: SOP 50‑10‑8 and lender guidance require documented projected cash flows and DSCR support, and many SBA lenders and advisers now model for a minimum DSCR in the ~1.15–1.25x range when underwriting post‑upgrade projections. (starfieldsmith.com) Industry research flags the operational pressure behind the demand: the IEA identifies ongoing supply‑chain concentration risks for energy‑technology manufacturing and sector analysts report rising energy and input costs that push firms toward equipment modernization while increasing near‑term working‑capital need. (iea.org) Market practitioners are translating those pressures into deal mechanics by layering structured amortizations, reserve/working‑capital cushions and more granular cash‑flow triggers into modernization financings—a pattern documented in private‑credit and independent‑lender commentary on equipment modernization lending. (alfasystems.com)
