The Commercial Finance Association (CFA) released its Quarterly Asset-Based Lending Index, Q2 2010 revealing significant growth in new credit commitments, another signal that U.S. businesses are utilizing options other than traditional bank financing to sustain and grow their operations. The index revealed:
-New credit commitments among asset-based lenders increased by 49%
-79% of reporting asset-based lenders report an increase in new credit commitment
-Credit line utilization increased to 35.8%
-Portfolio performance improved across the board, with significant decreases in gross write-offs and non-accrual
"While our nation's elected officials continue to bemoan the lack of credit available to businesses of all sizes, asset-based lenders once again served as a lifeline and proved that there is safe, secure and affordable money to borrow," said Andrej Suskavcevic, CEO, Commercial Finance Association. "The increase in new credit commitments speaks volumes about the role these lenders play in the marketplace. It also sends a clear signal that many American businesses are taking steps to secure working capital critical to their stability, growth and success."
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 19 largest CFA members engaged in asset-based lending. The Commercial Finance Association commissioned the survey.
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