NEW YORK — The Secured Finance Network (SFNet) recently released its Q4 2024 Asset-Based Lending Index and Lender Confidence Index, revealing the highest confidence levels in three years among both bank and non-bank lenders.
“Confidence levels were up sharply, though they may soften in future surveys as the economic impact of tariffs becomes clearer,” said SFNet CEO Rich Gumbrecht. “That said, ABL has long been seen as an all-weather product and today’s volatile market conditions reinforce its role as a dependable source of capital in uncertain times.”
The survey, collected in mid-February, showed bank confidence climbing 7.1 points to 63.2, while non-bank confidence rose 8.7 points to 65.8.
The fourth quarter highlighted diverging dynamics between lender types. Banks experienced slower deal flow and commitment runoff that outpaced new commitments, shrinking net balances. Meanwhile, non-bank lenders showed significant growth:
- Total commitments for non-banks increased by 11.9%
- New outstandings jumped by 168%, reflecting faster underwriting cycles
- Purchased participations reached 5.9% of outstandings, up 223 basis points from 2022
On a year-over-year basis, non-bank lenders posted a 9% gain in new commitments and a 25.7% increase in outstandings, while banks recorded double-digit declines in both metrics.
Credit performance remained solid across the industry, with non-accruals and write-offs staying well below historical averages. Though criticized loans increased slightly, there are currently no broad signs of distress in ABL portfolios.
“Amid shifting conditions and softening demand in some sectors, non-bank lenders are gaining share by moving with speed and flexibility,” added Gumbrecht. “That adaptability positions the industry to keep supporting middle-market borrowers when they need it most.”
The Q4 2024 Asset-Based Lending Index and Lender Confidence Index are based on survey data from leading bank and non-bank lenders. Full quarterly and annual data reports are available at: SFNet Asset-Based Lending & Factoring Surveys.
