According to the Commercial Finance Association’s latest Quarterly Asset-Based Lending 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.
“The survey results suggest an increase in sales volume for U. S. businesses,” said David Grende, chair of CFA’s data subcommittee and president and CEO of Siena Lending Group.
According to the CFA’s ABL Index for Q1/17, 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 Q4/16 to 0.0% in Q1/17.
“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.