U.S. businesses continued to grow in 2017, as reflected by increased borrowing during the year, the Commercial Finance Association (CFA) announced. According to the CFA’s 2017 Annual Asset-Based Lending and Factoring Survey, asset-based lending year-end commitments were up 8% over 2016. Outstandings increased 12% over the previous year.

Entrepreneurial lenders saw strongest growth with a 36.7% increase in outstandings in 2017 compared to 2016.The average new commitment for this segment of the industry grew 25.4% year over year.

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.

Overall factoring volume, domestic and international, also grew in 2017 compared to 2016. This growth can be attributed to a reported 6.9% increase in domestic factoring volume. In 2017 international factoring accounted for 7.9% of total factoring volume down from 8.3% in 2016.

“The robust increase in commitments and outstandings, as well as factoring volume, are good news 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 Annual Asset-Based Lending & Factoring Survey provides our stakeholders with vital data they need to understand key marketplace trends. It also underscores the critical role secured lenders and factors are playing in fueling economic growth,” said Richard D. Gumbrecht, CFA CEO.

The Annual Asset-Based Lending & Factoring Survey is conducted for the CFA by Westat, an independent market research firm.

A full copy of CFA’s Annual Asset-Based Lending & Factoring Survey is available here.