CFA Education Foundation Secured Lending Confidence Index
DECEMBER 17, 2018
The Commercial Finance Association Education Foundation today released its fourth Secured Lending Confidence Index “SLCI”. The Index, initially launched in April 2018, reflects prevailing business conditions and is a broad-based leading indicator of vitality in the U.S. middle market. The SLCI surveys leaders of commercial finance companies who provide secured loans used to finance ongoing operations, expansion and recapitalization of mid-market companies, according to Richard D. Gumbrecht, CEO of the Commercial Finance Association.
“The latest Confidence Index reflected strong optimism on the industry and the findings are consistent with what many economists are indicating. The robust pipeline in the entrepreneurial sector could indicate that banks are becoming more conservative,” said Miin Chen, Chief Financial Officer, Siena Lending Group.
“These outcomes demonstrate that the Confidence Index is a reliable tool in helping our members see around corners and assist them in making appropriate business decisions. As we build the data over time, it will become an increasingly significant tool,” said CFA Education Foundation Executive Director, Greg Slowik,
The SCLI measures five dimensions of anticipated activity over the coming three months including overall business conditions, portfolio performance, demand for new business, client utilization and hiring expectations. Respondents indicated the most optimism for new business demand followed by business conditions overall, both positive indicators for the U.S. economy.
The SCLI is conducted quarterly.
About the Commercial Finance Association
Founded in 1944, the Commercial Finance Association is the international trade organization representing the asset-based lending, factoring, trade and supply chain finance industries, with nearly 250 member organizations throughout the U.S., Canada and around the world. CFA provides education, networking opportunities and industry advocacy to the global commercial finance community.
About the CFA Education Foundation
The mission of the CFA Education Foundation is to cultivate education, innovation and charitable works for the betterment of the Commercial Finance community. As a separate entity from the Commercial Finance Association, the CFA Education Foundation is a 501(c)(3) organization that funds crucial initiatives benefiting secured lenders worldwide.