The asset-based lending market size is expected to grow from US$ 740.24 billion in 2023 to US$ 1,901.66 billion by 2031; it is anticipated to expand at a CAGR of 12.5% from 2023 to 2031. Easier qualification criteria for asset-based lending are expected to offer high growth opportunities.
Asset-based lending is a large asset class that reaches across many different segments of the economy. The ongoing disintermediation of traditional bank financing and technological innovation has spurred rapid growth in recent years, and the trend is expected to continue. Traditional business financing, which evaluates a company's cash flow, is effective for many businesses. However, some companies may be eligible for additional borrowing based on their owned assets. This alternative approach, known as asset-based lending, is more suitable for them. Asset-based lending market solutions allow a wide range of assets, including accounts receivable, brand names, real estate, and intellectual property, to be used as collateral, providing access to vital capital. For businesses with substantial assets, asset-based lending offers significant financing options with a flexible structure that allows for future decision-making. Moreover, special arrangements like FILO (first in, last out) tranches can increase the borrowing capacity.
The scope of the asset-based lending market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific (APAC) is experiencing rapid growth, but North America is anticipated to hold the largest asset-based lending market share. APAC’s significant economic development and growing interest in trading have presented substantial opportunities for asset-based lending to expand. In the US, non-bank lenders have extended asset-based lending against more than 20% of assets available as collateral. Such trends promote the market growth in North America.
The regional trends and factors influencing the Asset-Based Lending Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Asset-Based Lending Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 740.24 Billion |
| Market Size by 2031 | US$ 1,901.66 Billion |
| Global CAGR (2023 - 2031) | 12.5% |
| Historical Data | 2021-2023 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Asset-Based Lending Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Asset-Based Lending Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The "Asset-Based Lending Market Analysis" was carried out based on type, interest rate, organization size, and geography. In terms of type, the market is segmented into equipment financing, inventory financing, receivables financing, and others. Based on the interest rate, the market is bifurcated into a fixed rate and floating rate. In terms of organization size, the market is bifurcated into SMEs and large enterprises. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the asset-based lending market. A few recent key market developments are listed below:
[Source: Praetura Commercial Finance, Company Website]
[Source: Solifi, Company Website]
The market report on “Asset-Based Lending Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-
The key players holding the majority of shares in the global asset-based lending market are Barclays Bank, Berkshire Bank, Capital Funding Solutions, JPMorgan Chase & Co, and Wells Fargo.
The global market is expected to reach US$ 1,901.66 billion by 2030.
The global market was estimated to be US$ 740.24 billion in 2023 and is expected to grow at a CAGR of 12.5 % during the forecast period 2023 - 2031.
The growth of private asset-based lending is expected to play a significant role in the market in the coming years.
Easier qualifications and easy access to loans are the major factors that propel the global asset-based lending market.