Asset-Based Lending Commitments Rose During Q2 2026
New client lending commitments grew by 60 percent as businesses sought increased liquidity and borrowing flexibility.
Updated on Sept. 29, 2026 in Financial Services
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Asset-based lending commitments to new clients in the United States surged by 60% during the second quarter of 2026. This uptick reflected a broader corporate trend as firms prioritized securing liquidity and borrowing flexibility.
Why it matters
The shift highlights a strategic move by businesses to bolster their financial resilience through collateral-backed credit lines. Lenders observed that companies focused on maintaining available capacity rather than immediate cash drawdowns.
Bank net commitments rose to US$2.81 billion in Q2 2026, marking a rebound from negative US$510 million in Q1. Total bank outstanding balances reached US$147.2 billion, with facility utilization currently standing at 40.1%.
The players
Secured Finance Network
This trade association provides data and resources for the secured finance industry and conducted the survey of 36 lenders.
The details
Data from 36 bank and non-bank lenders reveals that new commitments climbed 58.7% for banks and 60.9% for non-bank institutions quarter-over-quarter. Despite the increase in commitments, banks reported an 80 basis point improvement in criticized and classified loans.
Timeline
Q1 2026 saw bank net commitments drop to negative US$510 million.
Q2 2026 marked a significant recovery with new-client lending commitments rising by 60%.
Market Landscape
This growth in lending follows a pattern set by the post-2023 liquidity preference trend, where firms prioritize readily available credit over immediate cash holdings. The sector is currently seeing intensified competition between traditional banks and non-bank lenders for credit-worthy clients.
Corporate borrowers may find lenders more willing to extend flexible credit lines, potentially easing access to capital for those with strong collateral. Borrowers should monitor shifts in utilization rates as a barometer for how strictly lenders manage credit risk.
The takeaway
Businesses looking to optimize their balance sheets should evaluate asset-based lending as a viable tool for maintaining a liquidity buffer. Managing the ratio between committed capacity and utilized funds remains a key strategy for navigating periods of economic uncertainty.
Further reading
For more on credit trends, visit the Financial Services section.
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