Commercial Finance Association Points to Signs of Credit Market Stabilization

Credit line utilization, portfolio performance and new credit commitments improve among many asset-based lenders

Jun 03, 2010, 09:41 ET from Commercial Finance Association

NEW YORK, June 3 /PRNewswire/ -- The Commercial Finance Association (CFA) today released its Quarterly Asset-Based Lending Index, Q1 2010 which, similar to other economic indicators, points to a number of signs that suggest that a recovery is underway, including:

  • 32 percent of responding asset-based lenders report an increase in new credit commitments;
  • Credit line utilization increased to 35.3 percent; and
  • Portfolio performance improved across the board, with significant decreases in gross write-offs and non-accruals.

While total committed credit lines decreased slightly (2.1 percent), the CFA believes that the improved performance of existing credit lines sends a clear signal that the economy has begun to turn the corner.

"This data sends a positive signal about the financial health of U.S. businesses," said Andrej Suskavcevic, CEO, Commercial Finance Association.  "Many of our members are reporting an increase in viable deals.  Furthermore, it is clear that existing borrowers are performing more responsibly as write-offs and non-accruals are down sharply.  The slight decline in committed credit lines, in our opinion, is less about our members' ability to lend and more about companies being more cautious about when and how much to borrow.  Given what our nation has faced over the past two years, we see this as a positive development."

Businesses in need of financing are encouraged to utilize the CFA's free online service, "Find a Lender," by visiting

The Quarterly Asset-Based Lending Index was conducted by R.S. Carmichael & Co., an independent market research firm, to measure business growth, credit commitment, credit line utilization and portfolio performance of the 19 largest CFA members engaged in asset-based lending. The survey was commissioned by the Commercial Finance Association. For a full copy of the survey, please contact Mike Trainor at (919) 674-6020 x158 or

About CFA

Founded in 1944, the Commercial Finance Association is the trade group of the asset-based financial services industry, with nearly 300 member organizations throughout the U.S., Canada and around the world. Members include the asset-based lending arms of domestic and foreign commercial banks, small and large independent finance companies, hedge funds, private equity firms, floor plan financing organizations, factoring organizations and financing subsidiaries of major industrial corporations.

SOURCE Commercial Finance Association