Q12016

 

      

INTRODUCTION

 

This Quarterly Asset-Based Lending Index was developed to help Commercial Finance Association members and external constituencies monitor industry trends.

25 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 4.9% in 1Q 2016 from the prior quarter.

Compared to the same quarter in 2015, total commitments increased 10.3%.

Lenders’ new credit commitments in 1Q 2016 were 37.3% lower than the prior quarter and 6.8% below the same quarter in 2015.

Credit line utilization as of March 31, 2016, was 39.7%. This was higher than the previous quarter (38.8%) but below the same quarter in 2015 (41.1%).






13% of lenders reported an increase in non-accruals in 1Q 2016 compared to the prior quarter. In 4Q 2015, 17% had reported an increase.

With respect to gross write-offs, 17% of lenders reported an increase in 1Q 2016 compared to 13% in 4Q 2015.

Gross write-offs as a percentage of total asset-based loans outstanding continued to be at an historically low level in 1Q 2016.