Q42015

 

      

INTRODUCTION

 

This Quarterly Asset-Based Lending Index was developed to help Commercial Finance Association members and external constituencies monitor industry trends. 26 of the largest CFA members engaged in asset-based lending provided data for this Index.

The mix of reporting members changes from time to time. Also, they occasionally revise previously reported data. In these instances, data from prior indices is restated.

This survey was conducted by R.S. Carmichael & Co. on behalf of the CFA.

 

 

BUSINESS DEVELOPMENT

Total committed credit lines grew 2.7% in 4Q 2015 from the previous quarter.

Compared to the same quarter in 2014, total commitments were up 6.7%  

Lenders’ new credit commitments in 4Q 2015 were 47.9% above the prior quarter and 23.5% above the same quarter in 2014.  
 
Credit line utilization as of December 31, 2015, was 39.8%.  This was lower than the prior quarter and the same quarter in 2014.

 







PORTFOLIO PERFORMANCE

24% of lenders reported an increase in non-accruals in 4Q 2015 compared to the prior quarter. In 3Q 2015, 24% also had reported an increase.

With respect to gross write-offs, 12% of lenders reported an increase in 4Q 2015 vs. 28% in 3Q 2015.

Gross write-offs as a percentage of total asset-based loans outstanding remained at an historically low level in 4Q 2015.