Asset-based Lending Global Market Report 2024 - Market to Soar to $1262.76 Billion by 2028, Driven by Demand for Non-Traditional Financing Solutions

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Feb 19, 2024, 19:30 ET

DUBLIN, Feb. 19, 2024 /PRNewswire/ -- The "Asset-based Lending Global Market Report 2024" has been added to ResearchAndMarkets.com's offering.

The asset-based lending market size has grown rapidly in recent years. It will grow from $697.75 billion in 2023 to $787.28 billion in 2024 at a compound annual growth rate (CAGR) of 12.8%. The growth observed in the historical period can be attributed to several factors, including economic downturns and associated credit challenges, the demand for working capital financing, the cyclical nature of industries, corporate restructuring, and turnarounds. Asset-Based Lending (ABL) has been particularly instrumental in addressing asset-rich but cash-poor situations, offering businesses a viable financing strategy during challenging economic conditions. These dynamics contributed to the increased adoption and significance of ABL as a financial solution during the historic period.

The asset-based lending market size is expected to see further growth, reaching $1262.76 billion in 2028 at a compound annual growth rate (CAGR) of 12.5%. The anticipated growth in the forecast period can be attributed to global economic trends and increased volatility, a rising demand for non-traditional financing solutions, an expanding role in cross-border transactions, a heightened focus on working capital optimization, and industry-specific tailoring of Asset-Based Lending (ABL). Major trends expected in the forecast period encompass the expansion of cross-border asset-based lending, the application of artificial intelligence (AI) in credit decisioning processes, collaborative efforts between traditional lenders and fintechs, a concentrated focus on non-traditional collateral types, and the integration of risk management analytics into ABL practices. These trends collectively contribute to the projected growth and evolution of Asset-Based Lending in the forecasted period.

The anticipated surge in loan demand is expected to significantly drive the growth of the asset-based lending market moving forward. Loans, a financial arrangement where one party, typically a bank or financial institution, provides funds or assets to another party, offer opportunities for asset-based lending. This lending method provides flexible financing, improved liquidity, and scalability, making it an attractive choice for borrowers.

The escalating need for alternative financing avenues is poised to propel the expansion of the asset-based lending market in the foreseeable future. Alternative financing options, emerging outside the conventional finance system such as banks and capital markets, offer businesses various channels to access funding and capital with advantages such as lower costs, enhanced flexibility, and simplified loan approval processes. Asset-based lending stands out as a particularly versatile and comprehensive financing alternative, surpassing conventional loans and grants.

The forecasted impact of higher interest rates associated with asset-based lending loans is expected to impede the growth of the asset-based lending market. Asset-based lending often entails higher interest rates compared to traditional bank loans due to the increased risk associated with lending against collateralized assets. This higher cost of borrowing limits market expansion and diminishes its attractiveness to potential borrowers.

Prominent companies operating within the asset-based lending market are actively engaged in developing platforms integrating advanced technology, particularly sophisticated trading technology, to drive revenues by enhancing returns, transparency, and customization. Sophisticated trading technology involves leveraging advanced tools, software, and infrastructure to execute trades, analyze data, and manage trading operations efficiently. This approach aims to improve trading performance, reduce latency, and enhance decision-making processes.

The primary types of asset-based lending include inventory financing, receivables financing, equipment financing, and other variations. Inventory financing involves using a company's inventory as collateral to secure a loan or line of credit, playing a significant role in the broader landscape of ABL transactions. Different interest rate structures, such as fixed rates and floating rates, are utilized in ABL, catering to the diverse needs of borrowers. Asset-based lending finds application across various end-users, including large enterprises and small and medium-sized enterprises

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

Report Scope

Markets Covered:
1) By Type: Inventory Financing; Receivables Financing; Equipment Financing; Other Types
2) By Interest Type: Fixed Rate; Floating Rate
3) By End User: Large Enterprises; Small and Medium-Sized Enterprises

Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain

Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa

Time Series: Five years historic and ten years forecast

Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita

Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments

Companies Profiled

JPMorgan Chase and Co.
Wells Fargo And Company
HSBC Holdings plc
Goldman Sachs Group Inc.
BMO Harris Bank N.A.
Barclays Bank PLC
Hilton-Baird Group
KeyCorp Limited
Huntington Business Credit
Lloyds Bank plc
BB&T Corporation
CoreVest Finance
Crystal Financial LLC
Triumph Commercial Finance
CIT Group
Bibby Financial Services
Sterling National Bank
Berkshire Bank N.A.
White Oak Financial LLC
Porter Capital Corporation
First Capital Federal Credit Union
LSQ Funding Group L.C.
Action Capital Corporation
LQD Business Finance LLC
Capital Funding Solutions Inc.

For more information about this report visit https://www.researchandmarkets.com/r/74mlba

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