Asset-based lending (ABL) refers to a financing method in which loans are secured by collateral, often tangible assets such as inventory, accounts receivable or equipment.
The asset-based lending market consists of sales, by entities (organizations, sole traders, or partnerships), of asset-based lending services that are commonly used by businesses to meet their cash flow needs, finance growth or restructure debt.
The global asset-based lending market was valued at $410,853.2 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 10.0%.
Rising Demand For Alternative Financing
Rising demand for alternative financing supported the growth of the asset-based lending market during the historic period. Alternative financing options refer to financial channels, processes and instruments that have emerged outside the traditional finance system, such as regulated banks and capital markets. These options offer businesses alternative ways to secure funding and capital, often with lower costs, more flexibility and easier loan approval processes. Asset-based lending is one of the most flexible and option-rich financing alternatives available, letting businesses secure financing that includes, but goes far beyond, traditional loans and grants. For instance, in April 2022, according to the Pew Research Center, a US-based nonpartisan American think tank, tens of millions of Americans will have used alternative financing arrangements in which buyers make payments directly to sellers. Therefore, the rising demand for alternative financing options drove the growth of the asset-based lending market.
Use Of AI In Advanced Lending Platforms To Provide Automated Lending
Companies operating in the asset-based lending market are focusing on AI (artificial intelligence)-driven lending platforms to drive revenues in the market. For instance, in April 2021, Fidelity Investments, a US-based financial services corporation, launched a digital platform called Fidelity Agency Lending. This platform provides automated lending using an AI loan decision functionality, benchmarking and transparency tools and offer customization of lending platform parameters.
The global asset-based lending market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up 17.0% of the total market in 2023.
Asset-Based Lending Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global asset-based lending market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for asset-based lending? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The asset-based lending market global report from The Business Research Company answers all these questions and many more.
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 history and forecasts market growth by geography. It places the market within the context of the wider asset-based lending market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by type, by lender, by borrower, by interest type and by end user.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the asset-based lending market.
- Global Market Size And Growth- Global historic (2018-2023) and forecast (2023-2028, 2033F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by type, by lender, by borrower, by interest type and by end user in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2023), historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies- Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for asset-based lending providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Type: Inventory Financing; Receivables Financing; Equipment Financing And Other Types
- 2) By Lender: Banks; Captives; Finance Companies; Other Lenders
- 3) By Borrower: Manufacturing; Staffing; Distribution; Logistics; Transportation; Business Services; Other Borrowers
- 4) By Interest Type: Fixed Rate; Floating Rate
- 5) By End-User: Large Enterprises; Small And Medium-Sized Enterprises
- Companies Mentioned: Banco Santander S.A.; BNP Paribas; Sumitomo Mitsui Banking Corporation; JPMorgan Co. & Chase; Royal Bank of Canada
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; Italy; Spain; UK; Russia.
- 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; asset-based lending indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.