U.S. businesses continue to grow, as reflected by increased borrowing during the fourth quarter of the year, the Commercial Finance Association (CFA) announced.

According to the CFA’s latest Quarterly Asset-Based Lending (ABL) Index, total committed credit lines increased 1% over 3Q2017 and 8% over the same quarter in 2016. New credit commitments increased 17% over the same quarter in 2016.

This data indicates borrowers have an increased need for capital to support expanding levels of inventory and accounts receivable, which is a positive sign for the economy.

Although gross write-offs grew in the quarter, they remain below all of last year and at historically low levels as a percent of loans outstanding. “The healthy growth in commitments year over year is a positive sign for both the industry and the economy,” said David Grende, Chair of CFA’s Data Subcommittee and President & CEO of Siena Lending Group.

“CFA’s Quarterly Asset-Based Lending Index provides our stakeholders with vital data they need to understand key marketplace trends. It also reflects the important role secured lending plays in the economy,” said Richard D. Gumbrecht, CFA CEO.

The Quarterly Asset-Based Lending Index is conducted for the CFA by Westat, an independent market research firm. CFA has tracked secured lending activity and published the Quarterly Asset-Based Lending Index since March 2008 to provide insight on national commercial lending trends.

A full copy of CFA’s Quarterly Asset-Based Lending Index is available HERE.