---
title: "Equipment Finance Industry: Companies"
description: "Equipment finance companies provide loans and leases for machinery, vehicles, aircraft and technology hardware, secured by the equipment itself."
canonical: https://www.getswoopr.com/stocks/industries/financials/equipment-finance/
source: "Swoopr Investment: https://www.getswoopr.com"
---

# Equipment Finance Industry

## Direct Answer

Equipment finance companies provide loans and leases for machinery, vehicles, aircraft and technology hardware, secured by the equipment itself. Results depend on collateral values, borrower credit and funding costs.

## Industry Overview

Equipment Finance sits within the financials sector. The first numbers to compare across companies here are new business volume, net yield on assets and net charge-offs. The outside forces that move them are listed under Primary Macro Drivers.

## Key Industry Metrics

- **New business volume**: Value of loans and leases written in a period. It shows demand for equipment and the lender's growth, and it reflects business investment cycles.
- **Net yield on assets**: Interest and lease income earned over the cost of funds, relative to assets. It shows the profit margin on financing, which can compress when funding costs rise faster than customer rates.
- **Net charge-offs**: Write-offs after recoveries from selling repossessed equipment, as a share of receivables. Equipment collateral reduces losses, but weak resale prices can raise them.
- **Residual value realization**: Whether equipment returned at the end of a lease is resold for at least the value assumed at the start. Shortfalls are charged against earnings, so values are a hidden risk.
- **Funding cost**: Rate paid to borrow money to lend out. Because loans are priced over time, a quick rise in funding costs narrows margins until new contracts reprice.

## Primary Macro Drivers

- **Business capital spending**: Companies buying machinery, vehicles or technology finance them, so higher business investment lifts new business volume and receivables.
- **Interest rates and funding spreads**: The spread between lease and loan yields and the cost of funds sets net yield on assets, so funding cost moves change margins.
- **Used equipment prices**: Resale values of equipment determine residual value realization and the loss when borrowers fail, so price changes show up in credit and residual results.
- **Tax incentives for equipment purchases**: Depreciation incentives lower the after-tax cost of buying equipment and pull forward purchases, lifting new business volume.

## Major Risks

- **Credit losses in recessions**: Weaker business cash flows raise defaults on loans and leases at the same time. Watch net charge-offs, delinquencies and new business volume.
- **Collateral value declines**: Falling resale prices increase losses on repossessed assets and residual value write-downs. Watch residual value realization and used equipment price indexes.
- **Funding market access**: Funding via securitization, banks and debt markets can reprice or close, limiting growth. Watch funding cost, facility maturities and securitization spreads.
- **Concentration in one asset type**: A portfolio tied to one equipment type, such as transportation or aircraft, moves with that sector. Watch the portfolio mix and top exposures.

## Industry Characteristics

| Characteristic | Profile |
| --- | --- |
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |

## Companies Associated with Equipment Finance

The SEC's Standard Industrial Classification has no code that describes equipment finance as a group, so there is no complete list of its filers. The companies below come from Swoopr's SEC dataset and have operations in or next to the industry. Each is classified by the SEC under its own main business.

| Company | SEC classification | Revenue | Growth | Net margin | Year |
| --- | --- | --- | --- | --- | --- |
| [Gatx Corp](https://www.getswoopr.com/stocks/companies/gatx-corporation/) | Transportation Services | $1.7 billion | 9.8% | 19.2% | FY 2025 |

Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. Listing here describes a business relationship to the industry, not a recommendation. To find more companies, use the [company directory](https://www.getswoopr.com/stocks/companies/) and the [financials hub](https://www.getswoopr.com/stocks/industries/financials/).

## Where to Go Next

The Equipment Finance guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.

### More in Financials

- [Financials sector overview](https://www.getswoopr.com/stocks/industries/financials/)
- [European Banks](https://www.getswoopr.com/stocks/industries/financials/european-banks/)
- [Emerging-Market Banks](https://www.getswoopr.com/stocks/industries/financials/emerging-market-banks/)
- [Factoring](https://www.getswoopr.com/stocks/industries/financials/factoring/)
- [Embedded Finance](https://www.getswoopr.com/stocks/industries/financials/embedded-finance/)
- [Financial Data Infrastructure](https://www.getswoopr.com/stocks/industries/financials/financial-data-infrastructure/)
- [Electronic Trading Platforms](https://www.getswoopr.com/stocks/industries/financials/electronic-trading-platforms/)
- [Financial Exchanges & Data](https://www.getswoopr.com/stocks/industries/financials/financial-exchanges-and-data/)
- [Diversified Financial Services](https://www.getswoopr.com/stocks/industries/financials/diversified-financial-services/)

### Put it to work

- [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/)
- [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/)
- [Company research](https://www.getswoopr.com/stocks/companies/)
- [All industries](https://www.getswoopr.com/stocks/industries/)

## Frequently Asked Questions

What are the main KPIs for the Equipment Finance industry?

Key performance indicators for the Equipment Finance industry include: New business volume, Net yield on assets, Net charge-offs, Residual value realization, Funding cost. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.

How cyclical is the Equipment Finance industry?

The Equipment Finance industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.

What are the biggest risks in the Equipment Finance industry?

The primary risks for Equipment Finance companies include: Credit losses in recessions, Collateral value declines, Funding market access, Concentration in one asset type. Investors should assess each company's exposure to these factors and its track record of navigating them.

**[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)**

Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).