Five Reasons Why 2009 was a Good Year for the Commercial Finance Industry
By: Mike Semanco, President, Hennessey Capital
I don’t deny that 2009 was an exceedingly challenging year for businesses of all sizes. However, 2009 may prove to be a watershed year for the commercial finance industry.
The economic crisis and simultaneous traditional credit drought created an opportunity for the commercial finance industry to step up to the plate and be recognized. The ability of many commercial finance companies to say “yes” to lending when many banks were saying “no,” often meant the difference between a business maintaining its position in the marketplace or closing its doors.
- The industry reminded the business community why factoring and asset-based lending have a 500 year history as it stepped up to finance small to medium sized businesses when traditional lending was either tight or non-existent.
- Asset-based lending and factoring garnered increased media attention this year, helping to educate business owners on the availability and value of such lending vehicles.
- The industry gained a new level of respect because of the expanded role it played in commercial lending and was able to significantly reduce the stigma associated with the use of factoring and asset-based lending, further burying the “lender of last resort” moniker.
- The industry benefited from the fallout in the broader financial services industry, presenting the opportunity to tap into some outstanding talent to further grow companies within the commercial finance field.
- With more business owners taking advantage of the benefits of factoring and asset-based lending, users of commercial finance are now more likely to share first-hand experience on how commercial financing vehicles helped sustain or grow their business
