BANGALORE, India, Jan. 27, 2022 /PRNewswire/ -- The Global Commercial Lending Market is Segmented By Type (Unsecured Lending and Secured Lending), Enterprise Size (Large Enterprises and Small & Medium Sized Enterprises), and Provider (Banks and NBFCs): Global Opportunity Analysis and Industry Forecast, 2021–2030. It is published in Valuates Reports under the Business Finance Category.
The commercial lending market size was valued at USD 8,823.53 Billion in 2020 and is projected to reach USD 29,379.83 Billion by 2030, growing at a CAGR of 13.1% from 2021 to 2030.
Major factors driving the growth of the commercial lending market are:
Commercial lending options provide flexible long-term lending, which is a major commercial lending market driver. In addition, payment collection collaborations between digital lending organizations and FinTech companies are expected to grow in the market.
Many business owners had to take out commercial loans to keep their businesses afloat as COVID-19 cases continued to rise and more restrictions were imposed during the pandemic. This resulted in a surge in commercial lending market growth.
Furthermore, small-business participation in taking commercial lending further boosted the commercial lending market size.
To modernize their commercial lending business, banks and financial institutions are implementing digitization solutions. Thus the digitization trend is expected to further drive the growth of the commercial lending market.
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TRENDS INFLUENCING THE COMMERCIAL LENDING MARKET GROWTH:
Commercial lending offers the lowest interest rates on all loan options, allowing business owners to get needed funds while keeping overhead costs low. Borrowers who choose fixed monthly repayments can use them accurately in their business planning and forecasting, allowing them to structure their business finance with a bit more certainty. Furthermore, commercial lending payment plans are typically for a number of years, allowing a company to focus on other important business matters such as sales, overhead management, and employee training. As a result, this is a significant driving force in the commercial lending market.
Small business owners frequently lack the financial resources to raise capital through debt or equity markets. Starting a business can be extremely costly and risky as a result of this. Commercial lending, on the other hand, can be used to cover all business startup costs. This also makes obtaining a relatively large amount of funding much less intimidating for business owners with limited resources. Furthermore, commercial lending facilitates access to large sums of money for small businesses by consolidating all financing into one loan. This is expected to be a major driving factor for the commercial lending market growth.
In the field of commercial lending, technological advancements have increased, and the online lending industry has grown at an incredible rate over the last few years. As the demand for commercial loans has grown, online lenders have begun to use technologies such as artificial intelligence, blockchain, and machine learning to improve the customer experience and make the process faster and more efficient. If this trend continues, online lenders may eventually supplant banks as the primary source of commercial loans. As a result, technological advancements in the field of commercial lending will create lucrative opportunities for the commercial lending market to grow in the coming years.
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COMMERCIAL LENDING MARKET SHARE ANALYSIS:
Based on type, the Secured Lending segment is expected to hold the largest market share during the forecast period.
Based on enterprise size, the Small & Medium-Sized Enterprises segment is expected to grow at the highest CAGR of 15.4% during the forecast period.
Based on the provider, NBFC's segment is expected to grow at the highest CAGR of 16.1% during the forecast period.
Based on region, the Asia-Pacific region is expected to lead the market with the highest CAGR of 15.1% during the forecast period.
Key Market Players:
- American Express Company
- Credit Suisse
- Fundation Group LLC
- Fundbox
- Funding Circle
- Goldman Sachs
- Kabbage
- LoanBuilder
- Merchant Capital
- OnDeck
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