As the U.S. looks to strengthen domestic manufacturing, supply chains and economic resilience, a new study from the Secured Finance Network (SFNet) finds that an often-overlooked segment of the credit markets provides a significant source of capital supporting those efforts.
The 2026 Secured Finance Economic Impact Study found that asset-based lending (ABL) and factoring contribute approximately $173 billion annually to U.S. real GDP, equivalent to 0.5% of the economy, and support an estimated 773,000 additional U.S. jobs. These forms of secured financing also increase real disposable income by approximately $940 per household. The study estimates that without ABL and factoring, U.S. businesses would lose $114 billion in available financing, while another $165 billion would shift to higher-cost alternatives.
“When we talk about strengthening American manufacturing and supply chains, much of the focus is understandably on where companies are building factories and making long-term investments. But those businesses also need capital every day to purchase inventory, pay employees, fill orders and bridge the gap between production and payment,” said Rich Gumbrecht, CEO of SFNet. “This research demonstrates that asset-based lending and factoring are an important part of that financial infrastructure. Their impact extends well beyond individual borrowers to jobs, household income and economic activity across the country.”
The economic impact of asset-based lending and factoring is particularly significant in working-capital-intensive sectors, increasing economic output by 3.9% in automotive, 1.5% in construction, 1.4% in electronics, 1.2% in wholesale trade and 0.8% in transportation and trucking.
Beyond supporting growth, ABL and factoring also provide critical liquidity during periods of financial stress, helping businesses preserve jobs and supply-chain relationships. Industry experts estimate that 27% of ABL clients and 40% of factoring clients would close without access to these financing options.
“SFNet worked with a group of industry experts to develop assumptions around the core business impacts of ABL and factoring, and Inforum applied those assumptions in our economic model to quantify how these forms of financing benefit the broader U.S. economy,” said Douglas S. Meade, Director of Research of Inforum. “Our modelling work suggests that ABL and factoring generate a notable amount of economic activity in the U.S. and key states.”
The study also examines the impact of ABL and factoring in five major U.S. markets. It finds that the financing supports 77,000 additional jobs in Texas, 73,000 in New York, 63,000 in Illinois, 57,000 in California and 44,000 in Georgia, while also increasing economic output and household disposable income across each state.
The analysis compares economic outcomes under current conditions with a scenario in which ABL and factoring are unavailable. SFNet worked with a steering group of secured finance leaders to develop assumptions around access to financing, financing costs and business closures, while Inforum used its Long-term Interindustry Forecasting Tool (LIFT) to quantify the broader economic effects.
Download the full 2026 Secured Finance Economic Impact Study here: https://www.sfnet.com/home/industry-data-publications/industry-insights-trends/sfnet-economic-impact-report
About Secured Finance Network
Founded in 1944, the Secured Finance Network is an international trade association connecting the interests of companies and professionals who deliver and enable secured financing to businesses. With more than 1,000 member organizations throughout the US, Europe, Canada and around the world, SFNet brings together the people, data, knowledge, tools and insights that put capital to work. For more information, please visit SFNet.com.
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