New York, NY (PRWEB)
August 11, 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, new U.S. ABL loan commitments have risen by 14% compared to the same period last year. This data indicates increased optimism in the economy and is a significant indicator of growth.
“Increases in both new credit commitments and utilizations indicate a positive trend for the industry as well as the economy. The survey results suggest an increase in sales volume for U. S. businesses,” said David Grende, Chair of CFA’s Data Subcommittee and President & CEO of Siena Lending Group.
According to the CFA’s ABL Index for Q1 2017, utilization of credit facilities reached a five-quarter high, reaching nearly 44%. Portfolio performance continues to improve with nonaccruals continuing a downward trend to 0.42% of average loans outstanding. The number of lenders reporting an increase in gross write-offs fell from 26.3% in 4Q 2016 to 0.0% in 1Q 2017.
“CFA’s Quarterly Asset-Based Lending Index provides CFA members with vital data they need to understand key marketplace trends. With recent changes to the survey process, it is now an even fuller representation of the ABL industry,” said Richard D. Gumbrecht, CFA Interim CEO.
CFA’s Quarterly Asset-Based Lending Index was conducted by Westat, an independent 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 CFA ABL Index.
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, Editor-in-Chief