PORTLAND, Ore., Feb. 16, 2022 /PRNewswire/ -- Allied Market Research recently published a report, titled, "Commercial Lending Market By Type (Unsecured Lending and Secured Lending), Enterprise Size (Large Enterprises and Small & Medium Sized Enterprises), and Provider (Banks and NBFCs): Global Opportunity Analysis and Industry Forecast, 2021–2030". As per the report, the global commercial lending industry was accounted for $8.82 billion in 2020, and is expected to reach $29.37 billion by 2030, growing at a CAGR of 13.1% from 2021 to 2030.
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Drivers, Restraints, and Opportunities
Access to large sums of money, shorter loan application processes, and low interest rates have boosted the growth of the global commercial lending market. However, strict qualifying criteria and repayment schedules hinder the market growth. On the contrary, technological developments in commercial lending would open lucrative opportunities in the future.
Covid-19 Scenario
- The Covid-19 pandemic has had a remarkable impact on the commercial lending market due to rise in commercial and industrial loans as the majority of the businesses suffered losses.
- Several banks reported that they are overburdened by the rise in commercial loading during the pandemic as firms continue to seek financing.
The Secured Lending Segment held the Largest Share
By type, the secured lending segment held the largest share in 2020, accounting for nearly three-fifths of the global commercial lending market. In addition, the segment is expected to register the highest CAGR of 14.6% during the forecast period, owing to growth of the real estate industry.
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The Large Enterprises Segment Dominated the Market
By enterprise size, the large enterprises segment held the lion's share in 2020, contributing to nearly three-fifths of the global commercial lending market, due to growing need for sophisticated and developed facilities & services for large businesses. However, the small & medium sized enterprises segment is estimated to manifest the highest CAGR of 15.4% from 2021 to 2030, due to rise in a number of entrepreneurs, that aspire to set up a new business or modify and expand a current establishment.
Asia-Pacific, Followed by North America, held the Largest Share
By region, the market across Asia-Pacific, followed by North America, dominated in 2020, holding more than two-fifths of the global commercial lending market. In addition, the region is projected to portray the highest CAGR of 15.1% during the forecast period, owing to government guarantee, rise in number of load deferrals, and payment holidays.
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Major Market Players
- American Express Company
- Credit Suisse
- Fundation Group LLC
- Fundbox
- Funding Circle
- Goldman Sachs
- Kabbage
- LoanBuilder
- Merchant Capital
- OnDeck
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