SOURCE: Commercial Finance Association

Commercial Finance Association

November 16, 2009 09:49 ET

Commercial Finance Association Reports Significant Growth Among Asset-Based Lenders

New Credit Commitments Grew by 29 Percent; Businesses Increasingly View Asset-Based Lending as a Secure and Available Source of Credit

NEW YORK, NY--(Marketwire - November 16, 2009) - The Commercial Finance Association (CFA) today released its Quarterly Asset-Based Lending Index, Q3 2009, revealing a dramatic 29 percent increase in new credit commitments among asset-based lenders. Additionally, non-accruing loans continued to trend downwards, which, according to the CFA, represents further stabilization in the asset-based lending market.

"It's clear that asset-based lending filled a crucial access to capital void in the third quarter," said Andrej Suskavcevic, CEO, Commercial Finance Association. "Due to the sound business practices inherent to asset-based lending, our members continue to have the ability to provide vital financing to businesses of all sizes and across all industry classifications. While the overall credit market is still ripe with uncertainty, businesses should look beyond their traditional bank and explore how asset-based lending can provide them with the capital to sustain or grow their operations. "

Businesses in need of financing are encouraged to utilize the CFA's free online service, "Find a Lender," by visiting www.cfa.com.

The Quarterly Asset-Based Lending Index was conducted by R.S. Carmichael & Co., an independent market research firm, to measure business growth, credit commitment, credit line utilization and portfolio performance of the 19 largest CFA members engaged in asset-based lending. The survey was commissioned by the Commercial Finance Association. For a full copy of the survey, or to interview a CFA executive, please contact Mike Trainor at (919) 674-6020 or mtrainor@sacherokee.com.

About CFA

Founded in 1944, the Commercial Finance Association is the trade group of the asset-based financial services industry, with nearly 300 member organizations throughout the U.S., Canada and around the world. Members include the asset-based lending arms of domestic and foreign commercial banks, small and large independent finance companies, hedge funds, private equity firms, floor plan financing organizations, factoring organizations and financing subsidiaries of major industrial corporations.

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