SFNet Releases Q4 2024 Asset-Based Lending and Confidence Indexes

Quarterly Survey Found Growing Confidence Among Bank and Non-Bank Lenders

NEW YORK--(BUSINESS WIRE)--The Secured Finance Network (SFNet) recently released its Q4 2024 Asset-Based Lending Index and Lender Confidence Index, offering a snapshot of a resilient ABL market.

As of mid-February, when the data was collected, both bank and non-bank lenders posted their highest confidence levels in three years, according to SFNet’s Lender Confidence Index. Banks climbed 7.1 points to 63.2, while non-banks rose 8.7 points to 65.8.

“Confidence levels were up sharply, though they may soften in future surveys as the economic impact of tariffs becomes clearer,” said SFNet CEO Rich Gumbrecht. “That said, ABL has long been seen as an all-weather product and today’s volatile market conditions reinforce its role as a dependable source of capital in uncertain times.”

The fourth quarter of 2024 underscored diverging dynamics between bank and non-bank lenders. While banks saw a slowdown in deal flow and a spike in commitment runoff outpacing new commitments and shrinking net balances, non-banks surged ahead:

• Total commitments for non-banks increased by 11.9%
• New outstandings jumped by 168%, reflecting faster underwriting cycles and steady portfolio performance
• Purchased participations reached 5.9% of outstandings, up 223 basis points from 2022, a trend expected to continue into 2025

On a year-over-year basis, non-bank lenders posted a 9% gain in new commitments and a 25.7% increase in outstandings, while banks recorded double-digit declines in both metrics.

Despite macroeconomic headwinds, credit performance remained solid across the industry in the fourth quarter. Non-accruals and write-offs stayed well below historical averages. While criticized loans ticked up slightly, there are currently no broad signs of distress in ABL portfolios.

“Amid shifting conditions and softening demand in some sectors, non-bank lenders are gaining share by moving with speed and flexibility,” added Gumbrecht. “That adaptability positions the industry to keep supporting middle-market borrowers when they need it most.”

The Q4 2024 Asset-Based Lending Index and Lender Confidence Index are based on survey data from leading bank and non-bank lenders. Full quarterly and annual data reports are available at: SFNet Asset-Based Lending & Factoring Surveys.

About Secured Finance Network

Founded in 1944, the Secured Finance Network (formerly Commercial Finance Association) is an international trade association connecting the interests of companies and professionals who deliver and enable secured financing to businesses. With more than 1,000 member organizations throughout the US, Europe, Canada and around the world, SFNet brings together the people, data, knowledge, tools and insights that put capital to work. For more information, please visit SFNet.com.