Deal Table Shows Increased Transaction Activity, Broad Industry Demand and Continued Strength Among Alternative Capital Providers

The third quarter of 2026 saw a notable increase in reported secured finance activity, with 279 transactions recorded in SFNet's Secured Finance Deal Table, compared with 224 in the second quarter. The 24.6% increase reflects continued demand for asset-based lending, factoring and specialty finance solutions across a broad range of industries.

Activity was relatively consistent throughout the quarter, with August recording the highest number of transactions at 106, followed by July with 89 and September with 84.

The Deal Table also highlights the continued importance of non-bank capital providers in the secured finance marketplace, alongside sustained participation from traditional banking institutions. Technology, manufacturing and transportation led industry activity, while receivables-based financing remained a significant component of reported transactions.

Alternative Capital Continues to Drive the Market

Non-bank lenders continued to account for the majority of transactions reported during the third quarter.

Of the 279 transactions recorded, 198 involved exclusively non-bank lenders, representing approximately 71% of reported deals. Bank-only transactions accounted for 71 deals, or 25.4%, while 10 transactions involved both bank and non-bank lenders.

Looking at individual lender participation, non-bank institutions accounted for 218 of the 409 lender entries, or 53.3%, while banks accounted for 191, or 46.7%.

This distribution illustrates the significant role specialty finance companies, factors and private credit providers continue to play in commercial finance. Their ability to offer customized structures, underwrite complex collateral and respond to borrowers' evolving financing needs makes them important partners for businesses across a wide range of industries.

Banks, meanwhile, remained active participants in the marketplace, particularly in larger credit facilities, syndicated transactions and refinancing initiatives. The presence of both bank and non-bank lenders in several transactions also demonstrates how traditional and alternative capital providers can complement one another in meeting borrowers' financing needs.

Technology Leads a Well-Diversified Portfolio

SFNet's Deal Table continued to reflect broad-based financing activity across the economy, with technology maintaining its position as the leading industry.

Technology companies accounted for 26 reported transactions during the quarter, up from 19 in Q2. Manufacturing followed with 23 transactions, compared with 18 in the previous quarter, while transportation ranked third with 22, up from 16.

The continued strength of these sectors highlights the need for financing to support technology investment, manufacturing operations, inventory requirements and transportation and logistics activities.

Additional areas of significant activity included:

Most Active Industries by Number of Financings

Several industries experienced increases compared with the second quarter. Distribution, for example, rose from nine transactions to 13, while technology, manufacturing and transportation all posted gains.

The diversity of industries represented in the table demonstrates the flexibility of secured finance solutions. From manufacturers and distributors to healthcare providers, staffing companies and technology businesses, borrowers continue to rely on asset-based and specialty financing to support operations and growth.

Receivables Finance Remains a Core Solution

Factoring continued to be one of the most frequently reported financing structures during the third quarter.

The Deal Table included 69 factoring-related transactions, compared with 53 in Q2. An additional 31 transactions involved accounts receivable, invoice or other receivables-based financing structures.

After accounting for seven transactions that appeared in both categories, the two groups represented 93 distinct receivables-related transactions, or approximately one-third of all reported deals.

The figures underscore the continued importance of receivables finance as businesses look to accelerate cash flow, manage working capital and access liquidity tied to outstanding customer invoices.

An Active and Competitive Lending Community

The third-quarter data also demonstrates the depth of the secured finance marketplace. A total of 219 distinct lender names appeared in the Deal Table, across 409 lender-level entries.

The breadth of participating lenders reflects a competitive financing environment that includes traditional banks, independent finance companies, specialty factors and private credit providers. This diversity provides borrowers with access to financing partners offering a range of structures and underwriting approaches.

What the Quarter Suggests

Taken together, third-quarter activity points to a secured finance market experiencing increased transaction volume and continued diversification across industries and financing structures.

The 279 transactions reported during the quarter represent a 24.6% increase over Q2, with August recording the highest level of activity. Technology, manufacturing and transportation continued to lead industry activity, while factoring and accounts receivable financing remained important sources of liquidity for businesses.

Several broader trends stand out:

• Non-bank lenders continue to play a leading role in the secured finance marketplace, while banks remain active participants in a variety of transactions.
• Factoring and accounts receivable financing remain essential tools for companies seeking to improve liquidity and manage working capital.
• Transaction activity is distributed across a wide range of industries, demonstrating the versatility of asset-based lending and specialty finance.
• The breadth of participating lenders reflects a competitive marketplace with financing options available to businesses of varying sizes and across multiple sectors.

As the industry moves toward the final quarter of 2026, SFNet's Deal Table continues to provide a valuable snapshot of financing activity across the secured finance marketplace, highlighting where capital is flowing, which industries are accessing financing and how lenders are responding to evolving borrower needs.

Q3 2026 By the Numbers

• 279 transactions reported
• 24.6% increase in reported transactions compared with Q2 2026
• 71% of transactions involved exclusively non-bank lenders
• 25.4% involved exclusively banks
• 3.6% involved both bank and non-bank lenders
• 26 technology financings, the largest industry category
• 69 factoring transactions
• 93 distinct receivables-related transactions, including factoring and A/R, invoice and other receivables financing
• 219 distinct lender names represented

This article was created with the assistance of AI tools.