SFNet Releases Q2 2026 Asset-Based Lending Index as Lender Optimism Continues

New Commitments Rise Sharply as Demand for Asset-Based Lending Strengthens

NEW YORK--(BUSINESS WIRE)--As businesses continue to contend with higher borrowing costs, persistent inflation and economic uncertainty, new data from the Secured Finance Network (SFNet) points to renewed momentum in asset-based lending. SFNet’s Q2 2026 Asset-Based Lending Index and Lender Confidence Index show a rebound in deal activity as companies increasingly look to flexible financing solutions to manage evolving working-capital needs.

According to the Q2 survey, conducted between July 21 and August 12, bank and non-bank lenders both reported slightly positive outlooks for the next three months. The combined sentiment score for banks rose 4 points to 59, while the non-bank score remained higher at 65, down slightly by 2 points from the previous quarter.

“Businesses are navigating higher costs driven by elevated interest rates and economic uncertainty, creating complex working-capital needs,” said Stephen Beriau, SFNet member and Senior Managing Director for Eclipse Business Capital. “The liquidity and flexibility offered by asset-based lending is increasingly seen as a tool for managing that complexity.”

Demand expectations remained particularly strong. The bank index for demand for new business increased 8 points to 68, with 36% of banks expecting demand to improve. Among non-banks, the demand index increased 2 points to 83, with two-thirds expecting improvement. No lenders in either group expect demand to weaken.

And indeed, the second quarter saw a significant rebound in new deal activity:

• New commitments with new clients rose 58.7% quarter over quarter for banks and 60.9% for non-banks
• Bank total commitments increased 1.3% and outstandings increased 2.0% quarter over quarter
• Non-bank total commitments increased 3.9%, while outstandings declined 1.2% quarter over quarter

Bank portfolio performance also improved during the quarter. Criticized and classified loans declined 80 basis points to 10% of outstandings, while non-accruals fell to 0.78% and gross write-offs declined to 0.09%, both below their respective 30-year averages of 0.92% and 0.41%. Nearly three-fifths of banks reported a decrease in criticized and classified loans.

Non-bank portfolio performance was mixed. Criticized and classified loans and non-accruals increased, although two-thirds of non-banks reported no change in criticized and classified loans. Gross write-offs remained at 0.0% of outstandings, with all non-bank respondents reporting no quarter-over-quarter change.

The Q2 2026 Asset-Based Lending Index and Lender Confidence Index are based on survey data from leading bank and non-bank lenders. Thirty-six lenders participated in the Q2 2026 ABL survey.

Highlights from the quarterly and annual data reports are available at SFNet.com.

About Secured Finance Network
Founded in 1944, the Secured Finance Network 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.