Expanding Our Reach

Welcome to The Secured Lender’s second Data Issue. When the idea for this issue was conceived in 2022, our intent was to enhance our data offerings to members and raise the profile of the secured finance industry. In this iteration, we’ve added bonus content aimed at educating prospective borrowers on the industry.

This issue will be distributed at events attended by the company executives you want to reach, including at the International Housewares Association CHESS conference in October. SFNet is working on partnering with trade associations representing lenders’ prospective clients who may not be familiar with the opportunities our members can offer.

I would like to thank the participants in this issue who are profiled highlighting relevant statistics, such as growth trends, industry and product focus and deal characteristics. I urge every member to participate in our recurring ABL and/or Factoring Surveys. Please contact Aydan Savaser at asavaser@ sfnet.com to participate in future reports and/or data issues or if you have any questions.

In May, SFNet published an update to its 2019 Secured Finance Market Sizing and Impact Study, its comprehensive assessment of the secured finance ecosystem and its impact on the U.S. economy. Highlights of the study can be found on page 28. Members can access the full report at sfnet.com.

On page 32, we present the 2023 Q2 SFNet Market Pulse, an economic report that highlights emerging macroeconomic trends likely to affect secured finance and asset-based lending over the near term. The report, underwritten by a grant from the Secured Finance Foundation, is designed to help lenders stay up-to-date on the most important macro-level economic and policy trends driving commercial credit demand, credit supply, portfolio performance, and financial stress and how these impact our served markets. This report is produced by Keybridge, a boutique economic research consultancy comprised of economists and public policy experts based in Washington, D.C.

This issue includes additional relevant data resources, including Refinitiv’s 2022 full syndicated bookrunner list on page 46. Also, from Refinitiv, on page 42, Maria Dikeos updates readers on 1Q23 U.S. ABL loan volume.

Going beyond data, to other relevant and timely content, don’t miss Unleashing the Power of AI in the Secured Finance Industry: A Journey into Change and Evolution by Ryan Jaskiewicz of 12Five Capital. Everyone is talking about ChatGPT and its capabilities (and risks). Ryan spoke about this topic at SFNet’s Independent Finance Roundtable and offers up his knowledge on the topic on page 64.

When it comes to lender due diligence and documentation, organizations are well versed in modeling, credit procedures and deal structures; however, there is another area that lenders cannot afford to ignore: Cybersecurity. In Mitigating Borrowers’ Cybersecurity Risk on page 68, Brian Resutek of Rosenthal & Rosenthal alerts lenders to what they need to know.

RICHARD D. GUMBRECHT SFNet Chief Executive Officer

As mentioned above, we’ve included educational “primers” for those who may be in search of working capital (these articles could also be valuable to new hires). On page 48, Mark Fagnani of PKF Clear Thinking and Jason Schumacher of Valley National Business Capital break down why asset-based lending can be the perfect source of capital for many businesses.

On page 52, Martin Efron of While Oak Commercial Finance explains how factoring provides access to critical working capital, credit protection and more.

By the time this issue is published, registration will be open to SFNet’s Annual Convention in Orlando, November 15-17. Our theme this year is “Built for the Moment. Agility. Patience. Opportunity.” The secured finance industry is known for its ability to adapt and thrive—no matter the challenge, we are built for the moment we are in. When the situation calls for agility , we have the tools to respond. We have the patience to assess the risks and experience to find the opportunity that others might not see. Plans are well underway to make this our best event yet, with dynamic speakers, thought-provoking content and unparalleled networking opportunities. So please join us at the biggest and most impactful gathering in secured finance. Until then, I wish the SFNet community a safe and enjoyable remainder of the summer!