I wanted to share an article that I recently penned for ABL Advisor which discusses the hyper-competitive state of the asset-based lending industry and the impact this market dynamic is having on borrowers and finance companies. Over the past decade a shift has taken place flooding new players, including traditional banks, into the market who are looking for significant returns but don’t necessarily have the hard-lending experience or appetite for risk that seasoned players do. With banks in particular, they are taking a more aggressive approach when it comes to both pricing and structure, which may seem attractive to borrowers in the short-term but in the long-term can prove detrimental if a bank decides to de-leverage assets that appear too risky.
Additionally, as manufacturing in the U.S. continues to proliferate, ABL will play an increasingly important role in the financing and growth of these types of businesses.
To read the piece, please click here.