New York, USA, April 05, 2023 (GLOBE NEWSWIRE) -- According to a report published by Research Dive, the global commercial lending market is anticipated to generate a revenue of $27,406.6 billion and rise at a noteworthy CAGR of 14.4% during the analysis timeframe from 2021 to 2028.
As per our analysts, commercial lending allows business owners to access crucial funding while keeping administrative costs lower compared to other lending options, which is expected to fortify the growth of the commercial lending market throughout the estimated timeframe. Besides, the commercial lending payment plans can be extended for several years, which allows corporations to devote their resources to other critical business matters, which is expected to bolster the growth of the market throughout the analysis period. Moreover, the increasing rate of technological innovation in the sector of commercial lending and the internet lending industry is predicted to create massive growth opportunities for the market over the estimated timeframe. However, the increasing amount of non-performing assets, especially during the pandemic may hinder the growth of the market during the analysis timeframe.
Segments of the Commercial Lending Market
The report has divided the market into various segments based on type, organization size, providers, and region.
Type: Unsecured Sub-Segment to be Most Productive
The unsecured sub-segment is predicted to generate a revenue of $15,647.8 billion during the estimated timeframe. This is mainly because unsecured loans are the most popular type of loan available in the market. Moreover, the increasing need for unsecured loans among many small businesses as they offer an affordable and easy way for them is expected to foster the growth of the market sub-segment over the analysis timeframe.
Organization Size: SMEs Sub-Segment to be Most Productive
The SMEs sub-segment is predicted to garner $13,148.4 billion throughout the forecast timeframe. This is mainly because of the increasing number of SMEs all across the globe. Moreover, the various kinds of benefits offered by governments to SMEs all around the world are expected to uplift the growth of the commercial lending market during the estimated period.
Providers: NBFC Sub-Segment to be Most Lucrative
The NBFC sub-segment is projected to generate a revenue of $14,263.8 billion over the analysis timeframe. This is mainly because the NBFCs provide quick and easy loans to businesses. Additionally, the increasing demand for credit products from NBFCs in the targeted segments, such as retail and agriculture is expected to boost the growth of the market sub-segment during the forecast period.
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Asia-pacific Region to Have Excellent Growth Opportunities
The Asia-Pacific region of the commercial lending market is predicted to register $7,081.9 billion during the estimated timeframe. This is mainly due to the growing number of small and medium industries in the region. Moreover, the increasing technological advancements taking place across the region are expected to thrive the regional growth of the market over the analysis period.
Covid-19 Impact on the Commercial Lending Market
The outbreak of the Covid-19 pandemic has positively impacted the commercial lending market. This is majorly due to the increase in commercial and industrial loans among enterprises going out of business because of the rapid spread of the virus. Moreover, the engagement of SMEs in commercial lending has further inclined the growth of the market throughout the crisis.
Key Players of the Market
The major players of the commercial lending market include
- Goldman Sachs
- Funding Circle
- Kabbage
- Credit Suisse
- Fundation Group LLC
- Fundbox
- LoanBuilder
- American Express Company
- OnDeck
- Merchant Capital
These players are widely working on the development of new business strategies, such as mergers and acquisitions, partnerships and collaborations, and product development to acquire a leading position in the global industry.
For instance, in August 2022, Paytm, an Indian multinational financial technology announced its partnership with Piramal Finance, a leading financial provider for both wholesale and retail funding opportunities across industry sectors. With this partnership, Paytm aimed to expand the distribution of merchant loans to small cities and towns in India.
Further, the report also summarizes other important aspects including SWOT analysis, the financial performance of the key players, the product portfolio, and the latest strategic development.
More about Commercial Lending Market:
- Commercial Lending: The Backbone of Emerging Startups
- Product Launches and Strategic Partnerships by Market Players such as Kabbage, Funding Circle, and Others to Foster the Growth of the Global Commercial Lending Market
