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Equipment Finance Costs Surge as Transaction Volumes Slip

Processing a single small-ticket lease or loan now costs lenders $2,729, a sharp increase of $322 over the previous year. Data from the Equipment Leasing and Finance Association reveals that while general administrative expenses climbed by 7%, the number of successfully booked transactions simultaneously dropped by the same margin.

Equipment Finance Costs Surge as Transaction Volumes Slip

The rising cost per contract stems from an operating model that struggles to scale amid shrinking volume. According to an analysis by QuickFi using the 2026 Survey of Equipment Finance Activity, the $2,729 figure accounts for sales, staffing, technology, and overhead costs, effectively spreading the burden of unclosed applications across every successful deal. By excluding credit losses, the data isolates the pure operational friction inherent in traditional lending processes.

Bill Verhelle, CEO of QuickFi, attributes the inefficiency to a structural failure rather than staffing or budget shortcomings. He argues that manual touchpoints on every application prevent meaningful cost reduction. In contrast, automated, embedded lending platforms currently operate at a fraction of that cost, with QuickFi reporting a per-transaction expense of $799 and projections to dip below $500 by 2028. As industry overhead continues to climb, the widening gap between legacy models and digital-first systems highlights a growing pressure on lenders to digitize or face sustained margin erosion.

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