Culver Capital Investment Banking

Asset-Based Lenders Helping to Fuel Economic Turnaround for U.S. Businesses

Thirty-five percent of reporting asset-based lenders report increase in new credit commitments

The Commercial Finance Association released its Quarterly Asset-Based Lending Index, Q3 2010 revealing continued growth in new credit commitments and credit line utilization, further evidence that U.S. businesses continue to utilize options other than traditional bank financing to sustain and grow their operations as the economy starts to show signs of life.

The index revealed:

  • New credit commitments among asset-based lenders increased by 2.7 percent in the 3rd Quarter
  • 35 percent of reporting asset-based lenders report an increase in new credit
    commitments
  • Credit line utilization increased for the fourth quarter in a row, to 36.8 percent
  • Portfolio performance continued to improved, with 80 percent of responding
    lenders reporting gross write-offs declined or stayed the same compared to the previous quarter

“There are signs everywhere that the economy is slowly starting to turn around and the results of the 3rd Quarter ABL Index show that asset-based lenders are playing a vital role in fueling this revival,” said Andrej Suskavcevic, CEO, Commercial Finance Association. “Just as they did during the deepest part of the recession, asset-based lenders will continue to provide essential working capital for American businesses of all kinds.”
Posted in: General Market Articles on December 3rd by bweaver


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