ABL and factoring add US$173bn to US GDP, SFNet study finds

Asset-based lending and factoring add an estimated US$173bn to annual US real GDP and support 773,000 additional jobs, according to new economic modelling commissioned by the Secured Finance Network.

SFNet’s 2026 Secured Finance Economic Impact Study estimates that the availability of ABL and factoring increases the size of the US economy by around 0.5%, while providing businesses with access to as much as US$659bn of financing. Around US$279bn of that capacity is estimated to be utilised.

The study models what would happen if businesses could no longer use the two financing structures. It estimates that around US$165bn of borrowing would shift to alternatives including cash-flow loans, higher-cost finance and equity, while another US$114bn of financing capacity would disappear altogether.

That distinction is particularly important for working-capital-intensive companies. ABL allows businesses to borrow against assets including receivables and inventory, while factoring converts outstanding invoices into immediate liquidity. Both can therefore provide funding where conventional unsecured credit is either unavailable or insufficient.

SFNet estimates that roughly 15,000 US businesses use ABL and another 85,000 use factoring. Removing those channels would also increase financing costs for many borrowers. Companies moving to conventional cash-flow lending could face costs approximately 4.5 percentage points higher, according to the study’s assumptions.

The modelling suggests the consequences extend beyond borrowers’ balance sheets. Access to ABL and factoring raises business investment by an estimated 2.6%, while real disposable household income increases about 0.5%, equivalent to roughly US$940 per household.

The strongest effects are concentrated in sectors where businesses incur costs well before collecting cash. SFNet estimates that secured finance increases output by around 3.9% in automotive, 1.5% in construction, 1.4% in electronics and 1.2% in wholesale trade.

The report also argues that secured finance has a defensive role during financial stress. Industry assumptions incorporated into the modelling estimate that 27% of ABL users and 40% of factoring clients could close without access to those products.

For the receivables-finance market, the findings provide an unusually broad measure of the economic value created when invoices, inventory and other working-capital assets can be converted into liquidity.