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

• In the COVID-19 pandemic, the demand for corporate loans is expected to rise & maintain a minimum cash flow and avoid disruptions in a company's operating performance.
• The impact of outbreak has increased tremendously, and it is affecting global businesses across several sectors. The crisis is causing stock market uncertainty, a drop in business confidence, and a massive slowdown in the supply chain; businesses are focusing on normal operations and the financial industry is dramatically demanding corporate lending solutions.

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

Key Benefits of the Report

• This study presents analytical depiction of the corporate lending market 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 market share.      
• The current market is quantitatively analyzed from 2021 to 2030 to highlight the corporate lending market growth scenario.                             
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.  
• The report provides a detailed market analysis depending on the present and future competitive intensity of the market.

Key Segments Covered

Questions Answered in the Corporate Lending Market Research Report               

• Which are the leading players active in the corporate lending market?
• What are the detailed impacts of COVID-19 on the market?
• What current trends will influence the market in the next few years?
• What are the driving factors, restraints, and opportunities in the corporate lending industry?