NEW YORK (PRWEB) August 09, 2018
U.S. businesses continue to grow, as reflected by increased borrowing during the first quarter of the year by entrepreneurial lenders, the Commercial Finance Association (CFA) announced today. According to the CFA’s latest Quarterly Asset-Based Lending (ABL) Index, entrepreneurial lenders continue to experience steady sequential quarterly commitment growth with a 2.1% increase over 4Q2017. Large to medium-sized lenders’ total committed credit lines were slightly down from 4Q2017, but increased over 1Q2017 by 7.9%. This dip most likely represents seasonal demand fluctuations.
This data indicates borrowers have a continued need for capital to support expanding levels of inventory and accounts receivable, which is a positive sign for the economy.
Gross write-offs as a percentage of outstanding funded loans hit an all-time low. “This data indicates a very strong portfolio quality for the industry, which is a reflection of a strong 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 reflects the important role secured lending plays in the economy,” said Richard D. Gumbrecht, CFA CEO.
The Quarterly Asset-Based Lending Index is conducted for the CFA 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 here.
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. CFA provides education, networking opportunities and industry advocacy to the global commercial finance community.
Michele Ocejo, Director of Communications
Commercial Finance Association