CFA’s Q3 2016 Asset-Based Lending Index
CFA’s Q3 2016 ABL Index Reveals Increased Commitments and Improved Utilization
Gross new commitments higher than same quarter in 2015
This Quarterly Asset-Based Lending Index was developed to help Commercial Finance Association members and external constituencies monitor industry trends. 24 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.
Total committed credit lines in 3Q 2016 increased 0.6% over the prior quarter. Compared to the same quarter in 2015, total commitments grew 8.3%.
Lenders’ new credit commitments in 3Q 2016 were 17.6% higher than the previous quarter and 33.3% higher than the same quarter in 2015.
Credit line utilization as of September 30, 2016, was 41.5%. This was higher than the previous quarter (40.1%) but lower than the same quarter in 2015.
Lenders’ non-accruing loans in 3Q 2016 as a percentage of total asset-based loans outstanding were lower than the previous quarter.
22% of lenders reported an increase in non-accruals in 3Q 2016 compared to the prior quarter. In 2Q 2016, 17% had reported an increase.
With respect to gross write-offs, no lenders reported an increase in 3Q 2016 compared to 22% in 2Q 2016.
Gross write-offs as a percentage of total asset-based loans outstanding continued to be within historical ranges.