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| A12934 | Pages: NA | Oct 2021 | 173 Views | | |
| Author(s) : Vijay Poola | Tables: NA | Charts: NA |
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Pandemic disrupted the entire world and affected many industries.
Get detailed COVID-19 impact analysis on the Asset-based Lending Market
Request Now !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
Market Scope and Structure Analysis
Report Metric | Details |
Market Size Available For Years | 2020–2030 |
Base Year Considered | 2020 |
Forecast Period | 2021–2030 |
Forecast Unit | Value ($) |
Segments Covered | Entities, Interest Rate, and Region |
Regions Covered | North America (U.S., Canada and Mexico), Europe (Germany, UK, France, Italy and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea and the Rest of Asia-Pacific), and LAMEA (Latin America, Middle East and Africa)
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Companies Covered | 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 |
COVID-19 Scenario Analysis
Asset-Based Lending Market Key Segments
Segment | Sub-Segment |
Entities |
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Interest Rate |
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Questions Answered in the Asset-Based Lending Market Research Report
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