Stability and consistency remain key to asset-based lending’s evolution as a primary financing option, even allowing the industry to emerge from the Great Recession perhaps better positioned for growth than ever before. Moreover, experience and flexibility will help secured lenders to navigate a changing — and shrinking — global landscape as technology and communication tools continue to make the world a smaller place.
This year promises to be among the most challenging in memory for asset-based lenders. More than at any other time, lenders will face competing pressures to open up the spigot to meet pent up market demand for financing, while simultaneously confronting internal and external pressures to limit exposure and risk. Adding to the impetus is the recent White House initiative to leverage banks into aiding small businesses through increased lending.