A12960 | Pages: NA | Sep 2022 | 1452 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 Corporate Lending Market
Request Now !A commercial loan is a debt-based financing arrangement between a business and a financial institution such as a bank, financial institution, and non-banking financial companies (NBFCs). It is typically used in funding major capital expenditures or to cover operational costs that the company is usually unable to afford during the bad performance. Many commercial loans require collateral such as property or equipment. Companies usually provide financial statements to showcase their ability to repay loans. Furthermore, lower interest rates, extended payment plans, and the inclusion of larger amounts of corporate lending are expected to boost Corporate Lending Market growth shortly.
The Corporate Lending Market share is segmented on the basis of type, interest rate, and region. Based on type, the market is bifurcated into term loan bank, overdraft, letter of credit, lease finance, construction equipment loans, and others. By interest rate, it is categorized into fixed interest rate and floating interest rates. Based on region, the market is analyzed across North America (the U.S. and Canada), Europe (Germany, the UK, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Key players operating in the Corporate Lending Market include UBS, Morgan Stanley, Bank of America Corporation., JPMorgan Chase & Co, Goldman Sachs, Royal Bank of Canada, Charles Schwab & Co, Citigroup Inc., Julius Baer Group, and CREDIT SUISSE GROUP. These players adopt collaboration, partnership, and agreement as their key developmental strategies to increase revenue of the Corporate Lending industry and develop new products for enhancing product portfolio.
COVID-19 Scenario Analysis
Top Impacting Factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis
Access to large sums of money and maintaining ownership of the business are driving the growth of the market. However, the loan application process and risk of default are expected to hamper the growth of the market. Contrarily, rise in adoption of Internet of Things and usage of artificial intelligence (AI) in lending platforms can be witnessed as an opportunity for the market.
The corporate lending market trends are as follows:
Risk of default
The risk of default refers to a situation in which a borrower is unable to meet their debt payment obligations. Almost every type of credit loan includes a default risk provision. If secured loan is not paid back on time, valuable assets are used to pay off the payment amount. Moreover, during an unsecured loan is defaulted, the lender will attempt to sue the defaulter in court. However, in light of the current pandemic situation, the financial position of firms has deteriorated dramatically, turning business into default and increasing the risk of a market default.
Access to large sums of money
Small business owners usually lack financial resources to raise funds and have limited access to raise money from venture capitalists or equity markets. Starting a business can be very costly and risky, and thus entrepreneurs and small & medium enterprises opt for lending solutions in the market. Businesses can easily access large sums of money with a commercial business loan. Low-interest rates boost small corporate businesses' spending power. Furthermore, businesses are willing to spend more on larger purchases such as fixed equipment.
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 |  Type, 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)  |
 Companies Covered | UBS, Morgan Stanley, Bank of America Corporation., JPMorgan Chase & Co, Goldman Sachs, Royal Bank of Canada, Charles Schwab & Co, Citigroup Inc., Julius Baer Group, and CREDIT SUISSE GROUP. |
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Key Benefits of the Report
Key Segments Covered
Segment | Subsegment |
 Type |
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 Interest Rate |
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Questions Answered in the Corporate Lending Market Research Report              Â
Key Market Segments
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Key Market Players
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