Asset Based Lending Market 2025 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034

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Asset based lending is referred to a type of loan depending upon the strength and stability of the lending company’s cash flow as a collateral on fixed and floating interest.               

MARKET OVERVIEW 

The market valuation of the asset-based lending market was valued at approximately USD xx billion in 2023 and is projected to reach USD xx billion in 2034 exhibiting a CAGR of xx.x% during the forecast period of 2024-2034. The market is aligned with diverse sector, which makes it a sustainable and growing market.

  

GROWTH DRIVERS 

The increase in the need for working capital flexibility is a primary driver of the market which allows businesses to maintain liquidity during fluctuations in cash flow. Wells Fargo States that asset-based lending offers an alternative that may provide more flexibility and help maximize borrowing capacity where the businesses seek capital to support ongoing operations or expansion.

Moreover, the asset-based lending serves as a viable option during economic uncertainty or market volatility which is another significant driver of the market. As per KKR, a global investment firm, the private asset-based finance asset class at the end of 2022 was 67% bigger than in 2006 and 15% bigger than it was in 2020. Its share of the overall asset-backed market has risen from just over one-third in 2006 to nearly half today.

The outlook for the future is equally promising, with the market expected to grow from $5.2 trillion to USD 7.7 trillion by 2027. The growth of small and medium enterprise is another growth driver of the market as they are more incident to landings in order to grow their businesses. The United Nation state that MSMEs account for 90% of businesses, 60 to 70% of employment and 50% of GDP worldwide.    

MARKET SEGMENTATION: 

·         By Type- inventory financing, receivables financing, equipment financing and others  

·         By Interest Rate- fixed rate and interest rate 

·         By End Users- Large enterprises, small and medium enterprises 

·         By Regions- North America, Europe, Asia Pacific, South America, Middle East and Africa

Asset Based Lending Market Segment by Type Review: 

The asset-based lending involves various types of lending options where different types of assets are utilized as collateral which includes inventory financing where the receiver secures loan by keeping the inventory at stake or collateral whereas receivables financing involves the use of accounts receivable. Similarly, equipment financing involves the use of mahinery and other fixed assets for securing the loan.


 

Regional Analysis: 

North America is a significant market driven by the presence of key global players and well-established financial ecosystem. Europe is another significant market driven by the presence of key global companies and robust industrial sectors leading to stable supply and demand of the market. APAC is a significantly growing market driven by rapid industrialization and growing finance sector. MEA is a promising market driven by infrastructure development and emerging financial markets. South America is another growing market driven by presence of SMEs and growth in agricultural sector.      

Key Challenges: 

The asset-based lending market is incident to regulatory compliance where navigating through diverse regulatory and legal framework may be time consuming, hindering market growth. Moreover, the market is aligned with ability of the borrower where business with poor or stagnant cash flow may not be eligible for the lending, hindering the market growth among small businesses.

Competitive Landscape: 

In the highly competitive Asset Based Lending market, companies are investing heavily in research and development to innovate and improve their products and services. They are also collaborating, forming strategic partnerships, or acquiring other companies to gain access to new market segments, enhance distribution networks, and increase market share.

 

The key recent news and development includes-

·         In January 2024, FundPark, a Hong Kong-based FinTech company, has successfully secured a significant asset-backed securitization facility USD 500 million from Goldman Sachs. The newly secured USD 500 million facility is expected to enhance FundPark's capacity to support a broader range of entrepreneurs, particularly in Asia, where the cross-border eCommerce market is rapidly expanding. The Federal Reserve has kept the federal funds rate steady at a 23-year high of 5.25% to 5.50% for the eighth consecutive meeting as of July 2024.

·         In June 2024, Wells Fargo has taken the lead in a syndicate that closed a significant asset-based lending (ABL) credit facility amounting to USD 1.1 billion for White Oak Commercial Finance (WOCF). This facility was finalized with the participation of 11 other unnamed banks, marking a notable boost in WOCF's lending capabilities.

·         In November 2023, Neiman Marcus Group has announced a significant amendment and extension to its asset-based lending (ABL) credit facility. The company entered into a Fourth Amendment to its existing Credit Agreement, which governs a USD 900 million ABL facility led by Bank of America, N.A. as both Administrative and Collateral Agent. 


 
Global Key Players:  

·         Lloyds Bank

·         Barclays Bank PLC

·         Hilton-Baird Group

·         JPMorgan Chase & Co

·         Berkshire Bank

·         White Oak Financial, LLC

·         Wells Fargo

·         Porter Capital

·         Capital Funding Solutions Inc.

·         SLR Credit Solutions

·         Other Players

Attributes

Details

Base Year

2023

Trend Period

2024 – 2034

Forecast Period

2024 – 2034

Pages

215

By Type

Inventory Financing, Receivables Financing, Equipment Financing And Others

By Interest Rate

Fixed Rate And Interest Rate

By End Users

Large Enterprises, Small And Medium Enterprises

By region

North America, Europe, Asia Pacific, the Middle East and Africa, and South America

Company Profiles

Lloyds Bank, Barclays Bank PLC, Hilton-Baird Group, JPMorgan Chase & Co, Berkshire Bank, White Oak Financial, LLC, Wells Fargo, Porter Capital, Capital Funding Solutions Inc., SLR Credit Solutions, Other Players

Edition

1st edition

Publication

January 2025

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