In its annual indicator of industry activity, the Secured Finance Network (SFNet) found cause for optimism but warned members to expect continued economic pressures in 2022.
The asset-based lending industry did not experience the dramatic first quarter bump evident in the broader U.S. economy, but it still grew and so did lenders’ confidence in the market, according to data released by the Secured Finance Network.
Finance company Franklin Capital will participate in SFNet’s 76th Annual Convention, which will be held from Nov. 17-19. Sue Duckett, executive vice president of Frankling Capital, will participate in a panel discussion on Nov. 17.
The effect of COVID-19 on the asset-based lending market became apparent in the second quarter as the industry’s most recent data reflect a 24.1% decline in total bank loans and 29.4% drop quarter over quarter in non-bank lending, according to the Secured Finance Network.
According to SFNet, total commitments for bank lenders in Q1/20 rose 7.8% compared with Q1/19 but were relatively flat compared with Q4/19. For non-bank lenders, total commitments rose 15.2% compared with Q1/19 but fell 1.8% compared with Q4/19.
According to data from SFNet, lenders reported asset-based lending to U.S. businesses increased steadily and credit quality remained strong in Q4/19, but the unfolding COVID-19 pandemic is having an unprecedented impact on financial markets.
Current headwinds affecting asset-based lending portfolios and emerging opportunities and challenges in the industry will be topics at the Secured Finance Network (SFNet) Asset-Based Capital Conference 2020 Feb. 4 and 5 in Las Vegas.