November Confidence Index Stays Strong for Equipment Financing, Supporting Compact Machine Purchases
The Equipment Leasing & Finance Foundation’s November 2025 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) holds near recent highs. The index came in at 59.9 in November, down just a tick from 60.1 in October. For contractors and rental houses buying compact equipment with leases or loans, that number matters. The index reflects how executives at leading leasing and finance companies feel about demand, credit and the broader economy over the next few months. Their answers help signal how easy it will be to finance skid steers, compact track loaders, mini excavators and other small iron. From the press release:
“The equipment finance industry is well positioned for a downturn or an economic boom. The sector by nature finances equipment that is new during boom times and used during downturns, so we have a gameplan in either situation. Equipment finance industry participants that have strong asset management capabilities will perform better in the downturns vs others that do not invest in that capability and talent.” Jeffry Elliott, CLFP, CEO of Elevex Capital and Equipment Leasing & Finance Association Treasurer
Confidence Stays Elevated for Sixth Straight Month
The Foundation describes the reading as “heightened” for the sixth month in a row. The index uses a 0 to 100 scale, with higher numbers showing greater optimism. A flat reading near 60 suggests lenders remain positive. They do not expect a surge, but they see stable business and continued demand for equipment financing. For compact equipment buyers, that points to a steady lending environment rather than a pullback. Executives remain more cautious about business conditions than earlier in the fall.
- 25 percent expect business conditions to improve over the next four months
- 62.5 percent expect conditions to stay the same
- 12.5 percent expect conditions to worsen
The share expecting improvement dropped from 37.5% in October. More respondents now expect “about the same” conditions. That mix supports a view of a flat to modestly growing market. Contractors may not see a boom in work, but the data does not point to a sharp slowdown either. That backdrop often encourages targeted investments in compact equipment rather than large fleet overhauls.
CAPEX Demand for Leases and Loans Eases But Holds
The survey also asks about demand for leases and loans to fund capital expenditures.
- 20.8 percent expect capex financing demand to increase
- 62.5 percent expect demand to stay the same
- 16.7 percent expect demand to decline
In October, 37.5 percent expected an increase, so expectations for growth clearly cooled. Still, almost two thirds expect steady demand, and only about one in six expect a drop. For compact equipment, this suggests buyers may become more selective. Contractors might prioritize machines that boost productivity, such as new compact track loaders with grade control (see photo above) or mini excavators with tiltrotators, rather than buying across the board.
Access to Capital Remains Favorable
Access to capital is a key worry for many small contractors and landscape firms. On that front, the survey shows a healthy picture. Over the next four months:
- 29.2 percent expect greater access to capital
- 70.8 percent expect access to stay the same
- 0 percent expect less access
No respondents see funding conditions tightening. That matters for buyers who rely on leases and loans for skid steers, compact wheel loaders, compact telehandlers and attachments. If lenders feel comfortable with their own funding, they can keep offering flexible terms, seasonal payment structures and small-ticket programs that fit compact equipment price points.
Executives Upgrade Their View of the U.S. Economy
Respondents also rated the current U.S. economy:
- 4.2 percent call the economy excellent
- 95.8 percent call it fair
- 0 percent call it poor
Last month, none rated the economy excellent. That small shift, plus the absence of “poor” ratings, shows cautious optimism. Looking six months ahead:
- 37.5 percent expect the U.S. economy to get better
- 41.7 percent expect it to stay the same
- 20.8 percent expect it to get worse
Compared to October, more executives now expect improvement and fewer expect deterioration. A “fair but improving” economic outlook usually supports continued investment in rental fleets and contractor fleets. Companies may not rush to buy every new compact model, but they also are not slamming the brakes on spending.
What This Means For Compact Equipment Financing
For contractors, that backdrop supports several practical moves:
- Explore leasing strategies
Leasing can help keep monthly payments predictable, match payment schedules to seasonal cash flow and preserve credit lines for other needs. - Compare offers across lenders
With many firms increasing business development spending, contractors should shop terms. Compare rates, residual values, fees and flexibility on early buyouts or extensions. - Align financing with machine life
Match lease or loan terms to realistic usage plans for compact track loaders, mini excavators, compact wheel loaders and attachments. Avoid holding long debt on short-life assets. - Use financing to upgrade productivity
If work stays steady, consider upgrading to machines with technology that cuts labor or rework. Grade control, telematics and various automation systems can help crews do more with less.
Keith Gribbins is publisher of Compact Equipment.
Check out our Machine Heads video detailing John Deere’s 334 P-Tier skid steer and 335 P-Tier track loader.
