Commercial Lending Market by Type (Secured and Unsecured), Organization Size (SMEs and Large Enterprises), Providers (Bank and NBFC), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Financial Services

BF22048579

Pages: 190

Apr 2022

Reports Overview

Commercial Lending Market Analysis

The global commercial lending market is anticipated to garner $27,406.6 billion in the 2021–2028 timeframe, growing from $9,712.8 billion in 2020, at a healthy CAGR of 14.4%.

Market Synopsis

The rapid growth in the number of startups across the globe is anticipated to boost the global commercial lending market. Additionally, acquisitions and business expansion by key market players are anticipated to boost the market growth.

However, the stringent qualifying criteria is anticipated to hamper the market growth in the near future.

According to the regional analysis of the market, the Asia-Pacific commercial lending market is anticipated to grow at a CAGR of 16.5%, by generating a revenue of $7,081.9 billion during the review period.

Commercial Lending Overview

Commercial lending is majorly all about the borrowing money from the banks or the NBFC for the development of the business expenses, equipment purchase, or for real estate. The commercial loans can range from 15 to 30 years of span. This majorly helps the organizations who have just started the business and further want to expand or add any of the above mentioned resource.

Impact Analysis of COVID-19 on the Global Commercial Lending Market

The COVID-19 pandemic has had a large impact on the commercial lending industry, owing to an increase in commercial and industrial loans as a result of the majority of enterprises going out of business because of the epidemic. Additionally, the engagement of SMEs in commercial lending had a significant role in this increasing development. Many banks reported being stunned as a result of the surge in commercial loans during the pandemic, which occurred when businesses required additional financing. Because of this, commercial lending has experienced significant growth throughout the global health crisis, which has become one of the most important growth factors in the industry.

Low Interest Rates are Projected to Drive the Market Growth

Commercial lending has the lowest interest rates of any loan option available, allowing business owners to access crucial funding while keeping lower administrative costs than other lending options. Furthermore, interest rates for commercial financing are often lower than those on other types of unsecured borrowing. Because fixed monthly installments may be used accurately in company planning and forecasting, borrowers can structure their business's financing with a little more assurance if they choose to have fixed monthly repayments. Furthermore, commercial lending payment plans are typically extended for several years, allowing a corporation to devote its resources to other critical business matters such as sales, overhead management, and employee training. The result is that this is a significant driving force in the commercial loan industry.

To know more about global commercial lending market drivers, get in touch with our analysts here.

Non Performance of Organizations Anticipated to Restrain the Market Growth

Commercial loan options, with their ability to provide flexible long-term lending, are a primary driver of the market. Furthermore, the industry is likely to see an increase in collaborations between digital lending organizations and FinTech companies for payment collection. Whereas the increase in the amount of non-performing assets (NPA), particularly during the pandemic, has, on the other hand, slowed the market's expansion.

Advancements in the Technology are Anticipated to Create Growth Opportunities

The rate of technological innovation in the sector of commercial lending has accelerated, and the internet lending industry has grown at an astonishing rate over the last couple of years, according to industry analysts. Loans are being initiated online in greater numbers than ever before, whether for company or personal reasons. Since there has been an increase in the demand for commercial loans, online lenders have begun to implement technologies such as artificial intelligence, blockchain, and machine learning to improve the customer experience when applying for commercial loans while also making the process faster and more efficient.

To know more about global commercial lending market opportunities, get in touch with our analysts here.

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