Asset-Based Lending Market By Entities (Sole Proprietorship, Partnership, Corporation, and Limited Liability Company) and Interest Rate (Fixed Rate and Floating Rate): Global Opportunity Analysis and Industry Forecast 2021–2030

Asset-Based Lending Market Outlook – 2030

The business of lending money through an agreement secured by collateral is known as asset-based lending. Assets, such as inventory, accounts receivable, equipment, or other property, are owned by the borrower. The loan-to-value ratio is frequently used in asset-based lending and depends on the credibility of the borrower, for example, the loan-to-value ratio for this asset-based loan is 80% of marketable securities. Therefore, a lender would provide a loan of up to 80% of the marketable securities value. Furthermore, increase in loans and easy accessibility of financing services are expected to boost the market growth of the asset-based lending market in future.

The global asset-based lending market is segmented on the basis of entities, interest rate, and region. Based on entities, the market is segregated into sole proprietorship, partnership, corporation, and limited liability company. In terms of interest rate, the market is bifurcated into fixed rate and floating rate. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).

Key players operating in the global asset-based lending industry include Crystal Financial, LQD Business Finance, LSQ Funding Group L.C., Porter Capital Corporation, White Oak Global Advisors LLC, Universal Funding Corporation, Capital Funding Solutions Inc., SLR Business Credit, Action Capital, and First Capital Federal Credit Union. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global market.

Top Impacting Factors

Asset-based lending is gaining massive traction among users, as low costs and easy loan availability are driving the market growth. However, increasing NPA burden is expected to hamper the growth of the market. Contrarily, increasing popularity of the lending-as-a-service platform (LaaS) online can be seen as an opportunity for market investments.

Increasing Popularity of Lending-as-a-Service Platform (LaaS) Online

Lending-as-a-service (LaaS) platforms are gaining popularity as they enable faster cashless and paperless borrowing. The digitalization of a LaaS platform refers to the usage of online technology available on a bank's or credit union's website for online applications, assessments, fulfillment, and repayments. This enables lending through advanced technology and potentially valuable non-financial data (big data) for credit-based on e-commerce platform payments without a credit score or a credit card. This contributes to the advancement of cashless digital lending.

Increasing Nonperforming Asset (NPA) Burden

The growing burden of non-performing assets (NPAs) is limiting the market growth during the forecast period. COVID-19 has increased the NPA burden due to factors such as a drop in global commodity prices, stalled projects, and intentional defaulters. Lockdowns have been implemented around the world to prevent the spread of the virus, and people have been advised to practice social distancing. Most countries' economic activity has been reduced, which resulted in increased unemployment rate and lower income levels.

Key Benefits of the Report

• This study presents analytical depiction of the asset-based lending market forecast along with the current trends and future estimations to determine the imminent investment pockets.      
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the asset-based lending market share.
• The current market is quantitatively analyzed from 2021 to 2030 to highlight the asset-based lending market growth scenario.          
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
• The report provides a detailed asset-based lending market analysis depending on the present and future competitive intensity of the market.

Market Scope and Structure Analysis

COVID-19 Scenario Analysis

• COVID-19 has increased the nonperforming asset (NPA) burden due to factors such as a drop in global commodity prices, stalled projects, and intentional defaulters.
• Moreover, the coronavirus is having a negative impact on asset-based lending market and the market is expected to recover from mid-2021 and will be struggling with a slow growth rate.

 Asset-Based Lending Market Key Segments  

Questions Answered in the Asset-Based Lending Market Research Report  

• Which are the leading players active in the asset-based lending market?
• What are the detailed impacts of COVID-19 on the asset-based lending market size?
• How current asset-based lending market trends will influence the industry in the next few years?
• What are the driving factors, restraints, and opportunities in the market?
• What are projections for the future that would help in taking further strategic steps?

 Key Market Segments & Key Market Players