Filling a Void: Asset-Based Lenders Report Significant Growth in 2008 Despite Credit...

Filling a Void: Asset-Based Lenders Report Significant Growth in 2008 Despite
Credit Market Turmoil

Asset-based lending industry grows by more than 8 percent; approaches $600
billion milestone

Commercial Finance Association advises businesses to explore all borrowing
options

NEW YORK, June 1 /PRNewswire/ -- During a year of unprecedented turmoil and
instability in the credit markets, the asset-based lending industry continued
to serve as a lifeline for businesses in need of capital to grow and sustain
their operations. Furthermore, the factoring industry continued its role as a
stable source of financing for businesses across all industries. This
according to the Commercial Finance Association, which today released its
"2008 Asset-Based Lending and Factoring Surveys." Among the key findings:

-- The U.S. asset-based lending industry grew by 8.3 percent in 2008 and
approached $600 billion in total loans outstanding
-- 2008 marked the seventh consecutive year of growth in the asset-based
lending industry
-- The top three industries utilizing asset-based lending in 2008 were
retail, steel and food. However, these industries collectively
represent
less than one-third of total outstanding loans, highlighting the
relevance of asset-based lending across all industry sectors
-- The factoring industry experienced a stable 2008, growing by 0.5
percent
despite the current credit environment

-- The textile/apparel industry continued to prevail as the leading
industry utilizing factoring (59 percent). However, non-traditional
industries for factoring e.g., transportation, business services) saw
an
increase in 2008.

(Photo: http://www.newscom.com/cgi-bin/prnh/20090601/CL24650)

"Despite all the negative news regarding the economy, our members were able to
- and continue to - actively lend to businesses of all sizes and across all
industry lines," said Andrej Suskavcevic, CEO, Commercial Finance Association.
"Certainly, the current 'credit crunch' has forced many lenders to take a more
cautionary approach, which ultimately limits their ability to provide funding
to businesses. However, businesses in need of capital should look beyond
traditional bank loans and realize there are lenders that are able to help
businesses meet their capital needs. Companies looking for capital can use our
free service called Find a Lender at www.cfa.com in order to connect with the
lending community."

"Asset-based lending and factoring represent mature and stable industries; in
fact, they are among the oldest forms of loans," said Suskavcevic. "The long
and successful history of these lending disciplines is a testament to the
responsible and conservative way in which our members have always lent money."

The Annual Asset-Based Lending and Factoring Survey was conducted by R.S.
Carmichael & Co, an independent market research firm, to measure business
growth, credit commitment, credit line utilization and portfolio performance
of the asset-based lending and factoring industries.
For a full copy of the survey, or to interview a CFA executive, please contact
Brian Cove at 212-792-9392 or bcove@cfa.com.

About CFA
Founded in 1944, the Commercial Finance Association is the trade group of the
asset-based financial services industry, with nearly 300 member organizations
throughout the U.S., Canada and around the world. Members include the
asset-based lending arms of domestic and foreign commercial banks, small and
large independent finance companies, hedge funds, private equity firms, floor
plan financing organizations, factoring organizations and financing
subsidiaries of major industrial corporations.

SOURCE Commercial Finance Association

Brian Cove, Commercial Finance Association, +1-212-792-9392, Bcove@cfa.com