By Jay Heflin - 08/12/10 05:30 PM EDT
The CFA is a trade group of the asset-based financial services industry, which includes domestic and foreign commercial banks, small and large independent finance companies, hedge funds and private equity firms.
The CFA on Monday released its Asset-Based Lending Index for the second quarter of 2010 that showed new credit commitments among asset-based lenders had increased by 49 percent.
"While our nation's elected officials continue to bemoan the lack of credit available to businesses of all sizes, asset-based lenders once again served as a lifeline and proved that there is safe, secure and affordable money to borrow," said CFA CEO Andrej Suskavcevic in prepared remarks. "The increase in new credit commitments speaks volumes about the role these lenders play in the marketplace. It also sends a clear signal that many American businesses are taking steps to secure working capital critical to their stability, growth and success."
Under asset-based lending loans are secured by an asset, such as a business' inventory or accounts receivables. In some cases, a home loan is considered asset-based lending because the property would revert back to the lender under default.