The Commercial Finance Association Education Foundation released its fourth Secured Lending Confidence Index “SLCI”. The Index, initially launched in April 2018, reflects prevailing business conditions and is a broad-based leading indicator of vitality in the U.S. middle market. The SLCI surveys leaders of commercial finance companies who provide secured loans used to finance ongoing operations, expansion and recapitalization of mid-market companies, according to Richard D. Gumbrecht, CEO of the Commercial Finance Association.

“The latest Confidence Index reflected strong optimism on the industry and the findings are consistent with what many economists are indicating. The robust pipeline in the entrepreneurial sector could indicate that banks are becoming more conservative,” said Miin Chen, Chief Financial Officer, Siena Lending Group.

“These outcomes demonstrate that the Confidence Index is a reliable tool in helping our members see around corners and assist them in making appropriate business decisions. As we build the data over time, it will become an increasingly significant tool,” said CFA Education Foundation Executive Director, Greg Slowik,

The SCLI measures five dimensions of anticipated activity over the coming three months including overall business conditions, portfolio performance, demand for new business, client utilization and hiring expectations. Respondents indicated the most optimism for new business demand followed by business conditions overall, both positive indicators for the U.S. economy.
The SCLI is conducted quarterly.