The asset-based lending market was estimated to be worth USD xx billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of xx.x% from 2024 to 2034, reaching USD xx billion. The market is increasing and sustainable since it is in line with a variety of industries.
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GROWTH DRIVERS
One of the main factors driving the industry that enables companies to preserve liquidity during cash flow volatility is the growing demand for working capital flexibility. According to Wells Fargo, when businesses are looking for funding to support ongoing operations or expansion, asset-based lending offers an alternative that can offer greater flexibility and help maximize borrowing capacity.
Additionally, asset-based lending is a good choice in times of market volatility or economic uncertainty, which is another important market driver. By the end of 2022, the private asset-based financing asset class was 15% larger than it was in 2020 and 67% larger than it was in 2006, according to international investment firm KKR.
The market is predicted to expand from $5.2 trillion to USD 7.7 trillion by 2027, indicating an equally optimistic forecast for the future. Due to their increased reliance on landings to expand their companies, small and medium-sized firms are another market driver.
MARKET SEGMENTATION:
· By Type- inventory financing, receivables financing, equipment financing and others
· By Interest Rate- fixed rate and interest rate
· By End Users- Large enterprises, small and medium enterprises
· By Regions- North America, Europe, Asia Pacific, South America, Middle East and Africa
Global Key Players:
· Lloyds Bank
· Barclays Bank PLC
· Hilton-Baird Group
· JPMorgan Chase & Co
· Berkshire Bank
· White Oak Financial, LLC
· Wells Fargo
· Porter Capital
· Capital Funding Solutions Inc.
· SLR Credit Solutions
· Other Players
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