After an unsettled couple of years, conditions are falling into place for further improvement in the asset-based lending industry, according to a new highly detailed report published in the industry news site ABL Advisor.

The recently released publication discussed the “ABL State of the Union” with several industry representatives to get their perspectives on what to expect in the months ahead.

Here are some of the key takeaways from the report:

• The current market environment for ABLs is described as highly competitive, combined with some uncertainty, given both political and economic factors. However, there exists strong potential for growth.
• The lending market is changing. ABLs see more businesses looking to fund attractively valued acquisitions. These include clients in less cyclical industries such as utilities and health care. Consumer discretionary businesses that are highly dependent on bank debt are seeking ABLs as an alternative lending solution.
• The ABL client profile is strengthening. Businesses that are getting funded have a clear and executable turnaround plan in place, are in a favored industry, and often require some owner equity or equity-like instrument in the capital structure to get a deal over the finish line.
• Over the next five years it’s expected that more (traditional) banks will find ways to form joint ventures with their non-bank industry partners. Additionally, other players, such as insurance companies and strategic asset managers could make a bigger play in acquiring non-bank platforms.
• Back in the 1990s, ABL was often seen as a last-resort option, sometimes perceived as a punitive form of credit. However, over time, ABL has evolved into a sophisticated financial product. 
• In challenging times, ABL products and expertise are tailored to address turnaround and distressed financing situations while in better times, ABLs are actively engaged in financing growth and acquisition opportunities for businesses.

Overall, ABL experts believe that the asset-based lending business will continue to grow, expand, and reinvent itself with new and unique products, a position that the leaders at Bridge Business Credit (BBC) wholeheartedly agree with.

Read the complete report here:  https://www.abladvisor.com/articles/40163/abl-industry-state-of-the-union-q1-2025