New York, NY (PRWEB) October 22, 2017
Businesses in the United States are growing, as reflected by increased borrowing during the second quarter of the year, the Commercial Finance Association (CFA) announced today. According to the CFA’s latest Quarterly Asset-Based Lending (ABL) Index, total committed credit lines increased 5% over 1Q2017. Total Borrowings increased 3% quarter over quarter and 12% compared to the same period the prior year.
This data seems to indicate borrowers have an increased need to support expanding levels of inventory and accounts receivable, which is a positive sign for the economy.
Portfolio performance continues to improve and remains strong with nonaccruals remaining steady at 40bps as compared to last quarter. Gross write-offs were at 34 bps for the quarter down from 73 bps in the same quarter prior year and are now at historically low levels.
“The increase in overall commitments coupled with strong portfolio credit quality is good news for both the industry and the economy,” said David Grende, Chair of CFA’s Data Subcommittee and President & CEO of Siena Lending Group.
“CFA’s Quarterly Asset-Based Lending Index provides our stakeholders with vital data they need to understand key marketplace trends. It also demonstrates the important role secured lending plays in the economy,” said Richard D. Gumbrecht, CFA CEO.
CFA’s Quarterly Asset-Based Lending Index is conducted by Westat, an independent market research firm. CFA has tracked secured lending activity and published the Quarterly Asset-Based Lending Index since March 2008 to provide insight on national commercial lending trends.
A full copy of CFA’s Quarterly Asset-Based Lending Index is available at http://community.cfa.com/Go.aspx?MicrositeGroupTypeRouteDesignKey=46e3ad1c-91b3-4a9d-94f6-21089947ff5d&NavigationKey=b101a81e-d8bc-4980-93de-8d1f0639857d
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 nearly 300 member organizations throughout the U.S., Canada and around the world. CFA provides education, networking opportunities and industry advocacy to the global commercial finance community.
Michele Ocejo, Director of Communications
Commercial Finance Association