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
New York, NY (PRWEB) November 16, 2010
The Commercial Finance Association (http://www.cfa.com) today 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 % in the 3rd Quarter
- 35 % 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%
- Portfolio performance continued to improved, with 80% 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.”
Businesses in need of financing are encouraged to utilize the CFA’s free online service, “Find a Lender,” by visiting http://www.cfa.com.
The Quarterly Asset-Based Lending Index was conducted by R.S. Carmichael & Co., an independent market research firm, to measure business growth, credit commitment, credit line utilization and portfolio performance of the 20 largest CFA members engaged in asset-based lending. The survey was commissioned by the Commercial Finance Association. For a full copy of the survey, please contact Brian Cove at (212) 792-9390 or at the email address above.
Founded in 1944, the Commercial Finance Association is the trade group of the asset-based financial services industry, with nearly 300 member organizations throughout the U.S., Canada and around the world. Members include the asset-based lending arms of domestic and foreign commercial banks, small and large independent finance companies, hedge funds, private equity firms, floor plan financing organizations, factoring organizations and financing subsidiaries of major industrial corporations.
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