NEW YORK, Feb. 23 /PRNewswire/ -- The Commercial Finance Association (CFA) today released its Quarterly Asset-Based Lending Index, Q4 2009, revealing continued stability and signs that U.S. businesses are seeking alternative sources of stable funding. In the fourth quarter of 2009, total committed credit lines grew by 1.2 percent among asset-based lenders, while 50 percent of respondents reported an increase in new credit commitments.
"Asset-based lending again served as a lifeline to thousands of American businesses in need of crucial working capital during the fourth quarter," said Andrej Suskavcevic, CEO, Commercial Finance Association. "The companies in our industry should be lauded for their ongoing responsible lending practices, which have allowed them to continue to provide such vital financing during this still uncertain credit market."
However, the CFA warns that action is needed to ensure asset-based lenders continue to have access to capital.
"As the credit markets continue to experience stress, many large banks have stopped or severely limited lending to non-bank finance companies," said Suskavcevic. "This represents a real and tangible threat to the financial health of small businesses. We urge our nation's financial institutions and our elected officials to pay attention to the unquestionable role that non-bank lenders play in supporting small businesses. Only then will asset-based lenders be able to continue to provide this needed working capital."
Businesses in need of financing are encouraged to utilize the CFA's free online service, "Find a Lender," by visiting www.cfa.com.
The Quarterly Asset-Based Lending Index was conducted by R.S. Carmichael & Co. 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, or to interview a CFA executive, please contact Mike Trainor at (919) 674-6020 or [email protected].
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