PUBLISHER: Allied Market Research | PRODUCT CODE: 1266407
PUBLISHER: Allied Market Research | PRODUCT CODE: 1266407
The lending of money under a contract that is protected by assets is known as asset-based lending. Businesses, not consumers, are the beneficiaries of asset-based financing. Inventory, accounts receivable, equipment, or other items that belong to the borrower can be used as collateral for an asset-based loan or line of credit. It is also known as asset-based financing.
The easier criteria for the eligibility of asset-based loans is one of the major reasons for the growth of asset-based lending market. In addition, asset-based loans provide financial stability for SMEs, micro-businesses, and medium-sized enterprises. It provides flexible additional funding for plant and machinery. Further, businesses can raise money through asset-based lending without doing credit checks or creating a cash flow projection. It is perfect for expanding a business or protecting working cash in volatile markets. These factors notably contribute toward asset-based lending market growth. However, the additional fees on asset-based loan apart from interest and borrowing limits restrains the growth of the asset-based lending market. On the contrary, increasing use of digital platforms to better manage liquidity and solvency risks has been facilitated by the emergence of innovative companies in the fintech sector. Utilizing open data trends also enables more specialized & more customized relevant goods and value-added services. Furthermore, new technologies provide the opportunity to optimize processes. Thus, these factors are expected to provide lucrative growth opportunities for the market in the coming years.
The asset-based lending market is segmented on the basis of type, interest rate, end user, and region. By type, it is categorized into inventory financing, receivables financing, equipment financing, and others. By interest rate, it is bifurcated into fixed rate and floating rate. By end user, it is divided into large enterprises and small & medium-sized enterprises. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the asset-based lending market such as Lloyds Bank, Barclays Bank PLC, Hilton-Baird, JPMorgan Chase & Co., Berkshire Bank, White Oak Financial, LLC, Wells Fargo, Porter Capital, Capital Funding Solutions Inc., and Crystal Financial. These players have adopted various strategies to increase their market penetration and strengthen their position in the asset-based lending industry.