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Annual 2019 ABL & Factoring Survey Points to Strong Asset Quality
May 1, 2019
Secured Finance Network Research Indicates Lenders Supporting Growth of Existing Clients
New York, May 23, 2019 – U.S. businesses continued to grow in 2018, as reflected by increased borrowing during the year, the Secured Finance Network (SFNET) announced today. According to SFNET’s 2018 Annual Asset-Based Lending and Factoring Surveys, asset-based lending year-end commitments were up 3.7% over 2017. Outstandings increased 9.3% over the previous year. Gross write-offs as a percentage of outstandings were 0.02%, the lowest amount on record.
Once again entrepreneurial lenders saw the strongest growth with a 14% increase in outstandings in 2018 compared to 2017.
The average size of new commitments decreased 7.3% year over year, which was more than offset by the majority of large lenders experiencing an increase in demand under existing client facilities.
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.
Overall factoring volume, domestic and international, also grew in 2018 compared to 2017. This growth can be attributed to a reported 10.4% increase in domestic factoring volume. In 2018, international factoring fell by 4.2%.
“The increase in commitments and outstandings, as well as factoring volume, are good news for both the industry and the economy. The historically low write-offs indicate excellent asset quality,” said David Grende, SFNET President and President & CEO of Siena Lending Group.
“SFNET’s Annual Asset-Based Lending & Factoring Survey provides our stakeholders with the vital data they need to understand key marketplace trends, which allows them to make informed business decisions. It also underscores the critical role secured finance providers are playing in fueling economic growth,” said Richard D. Gumbrecht, SFNET CEO.
The Annual Asset-Based Lending & Factoring Survey is conducted for the SFNET by Westat, an independent market research firm.
About the Secured Finance Network
Founded in 1944, the Secured Finance Network, soon to become the Secured Finance Network, is the international trade organization representing the asset-based lending, factoring, trade and supply chain finance industries, with over 1,000 member organizations throughout the U.S., Canada and around the world. SFNET provides education, networking opportunities and industry advocacy to the global secured finance community. For more information, please visit SFnet.com.
Michele Ocejo, Director of Communications
Secured Finance Network