As we kick off 2026, the equipment leasing and financing industry is poised for solid growth. According to the Equipment Leasing & Finance Foundation’s just-released 2026 U.S. Economic Outlook, real equipment and software investment is projected to rise 6.2% this year, fueled by ongoing AI-driven capital expenditures, resilient business demand, and the supportive effects of recent Federal Reserve rate cuts. With the $1.3 trillion equipment finance sector showing strength and confidence levels holding above historical averages, there’s never been a better moment for equipment vendors to capture more market share by offering in-house customer financing. But many vendors hesitate, intimidated by one key challenge: building the administrative infrastructure needed to run a full-fledged captive leasing operation.

If you’re an equipment vendor considering an in-house (captive) leasing program, you’ll need robust processes for every aspect of the business, from credit review and approval, document preparation and execution, UCC filings, sales and use tax compliance, invoicing and collections, customer marketing, accounting, repossession, remarketing, and even litigation when necessary.

That sounds daunting and expensive. Years ago, it would have required hiring a large staff and building everything from scratch. But here’s the game-changing reality in today’s environment that simplifies this undertaking and removes the cost. You don’t have to do it all yourself.

A wide array of sophisticated software solutions now exists to automate critical functions like lease pricing, documentation generation, payment tracking, and portfolio management. Even more powerfully, numerous third-party service providers specialize in outsourced billing, collections, tax compliance, reporting, and remarketing.

The result? Virtually every key operational function, except for those credit decisions that fall outside your pre-approved guidelines, can be handled efficiently through off-the-shelf software and reliable outsourcing partners.

This makes launching a captive leasing operation not only manageable but truly cost-effective. It allows you to boost sales, deepen customer loyalty, and create a profitable new revenue stream without what was previously a heavy overhead.

In 2026, with equipment investment accelerating and customers seeking flexible financing options amid easing rates, adding captive leasing gives you a decisive competitive edge. You’ll close more deals, upsell higher-end equipment, and lock in recurring relationships, all while controlling your brand’s financing experience.

For in-depth strategies on structuring and operating a successful captive program, I invite you to explore my book, Equipment Leasing and Financing, published by Business Experts Press. It provides practical, step-by-step guidance tailored to vendors navigating today’s dynamic market.

Now is the time to act. Turn that administrative “challenge” into your greatest advantage.

Best regards, Richard M. Contino Author, Equipment Leasing and Financing (Business Experts Press) Attorney and Equipment Finance Expert

P.S. If you’d like to discuss how these tools and trends apply to your specific vendor program, feel free to reply to email me: dck@captiveleaseadvisors.com, I’m always happy to connect.