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Latest Asset-Based Finance Index Indicates Continued Growth
May 21, 2018
Commercial Finance Association Research Indicates Economic Growth for Q4 2017
New York, May 21, 2018 – U.S. businesses continue to grow, as reflected by increased borrowing during the fourth quarter of the year, the Commercial Finance Association announced today. According to the Commercial Finance Association's latest Quarterly Asset-Based Lending (ABL) Index, total committed credit lines increased 1% over 3Q2017 and 8% over the same quarter in 2016. New credit commitments increased 17% over the same quarter in 2016.
This data indicates borrowers have an increased need for capital to support expanding levels of inventory and accounts receivable, which is a positive sign for the economy.
Although gross write-offs grew in the quarter, they remain below all of last year and at historically low levels as a percent of loans outstanding. “The healthy growth in commitments year over year is a positive sign for both the industry and the economy,” said David Grende, Chair of Commercial Finance Association's Data Subcommittee and President & CEO of Siena Lending Group.
“Commercial Finance Association's Quarterly Asset-Based Lending Index provides our stakeholders with vital data they need to understand key marketplace trends. It also reflects the important role secured lending plays in the economy,” said Richard D. Gumbrecht, Commercial Finance Association CEO.
The Quarterly Asset-Based Lending Index is conducted for the Commercial Finance Association by Westat, an independent market research firm. Commercial Finance Association has tracked secured lending activity and published the Quarterly Asset-Based Lending Index since March 2008 to provide insight on national commercial lending trends.
About the Commercial Finance Association
Founded in 1944, the Commercial Finance Association is the international trade organization representing the asset-based lending, factoring, trade and supply chain finance industries, with over 250 member organizations throughout the U.S., Canada and around the world. Commercial Finance Association provides education, networking opportunities and industry advocacy to the global commercial finance community.
Michele Ocejo, Director of Communications
Commercial Finance Association