As middle-market companies navigate tighter bank lending standards, supply-chain realignment, and ongoing economic uncertainty, secured finance has become an essential part of the economic infrastructure, quietly powering growth, liquidity, and resilience across the U.S. economy, according to a new study released by the Secured Finance Network (SFNet).
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SFNet’s 2025 Secured Finance Market Sizing Study finds that secured finance outstandings reached approximately $12.2 trillion as of Q4 2024, with annual transaction volumes totaling $6.5 trillion. Since 2022, outstanding volume has grown 35%, highlighting secured finance’s expanding role in supporting middle-market businesses that increasingly rely on asset-based lending, factoring, and other secured solutions to fund operations, manage volatility, and pursue growth.
The scope of this market underpins, either directly or indirectly, over one-fifth of the transaction volumes that made up the $29 trillion in 2024 U.S. Gross Domestic Product.
“Secured finance is no longer a niche segment of the financial system, it is a foundational pillar,” said Richard Gumbrecht, SFNet CEO. “As policymakers, regulators, and market participants re-examine how capital flows through the economy, this study highlights the scale, resilience, and adaptability of secured finance in supporting business activity and economic growth.”
Spanning seven major financing categories, asset-based lending, factoring, supply chain finance, equipment finance and leasing, leveraged lending, cash-flow lending, and asset-backed securitization, secured finance provides critical liquidity to businesses across industries and economic cycles.
“This research reinforces what market participants see every day, that secured finance has become essential infrastructure for the modern economy,” said Ian Fredericks of Hilco Global, SFNet’s Chair of Data, Technology & AI Committee. “By quantifying the size, scope, and interconnectedness of the market, this Study provides critical insight into how collateral-based financing supports businesses across cycles and fuels long-term economic activity.”
Published by the Secured Finance Foundation, the study builds on prior market sizing analyses conducted in 2019 and 2023 and draws on surveys of lenders, finance companies, and service providers, as well as third-party and publicly available data, to provide the most comprehensive snapshot to date of the secured finance ecosystem. The Foundation worked in collaboration with its data partner, Keybridge Research, and was guided by its Steering Committee, with input from dozens of subject-matter experts.
“Over the past several years, Keybridge has worked with the Secured Finance Network and its members to collect high-quality, timely data on key secured finance segments,” said Jeff Jensen, Partner at Keybridge Research. “This data has been instrumental in helping the Secured Finance Network estimate the size and reach of the industry.”
Market snapshot (2024):
- Asset-Based Lending: $210 billion outstanding, $537 billion in commitments
- Factoring: $148 billion in annual volume; $20 billion outstanding
- Supply Chain Finance: $2.56 trillion in annual volume; $640 billion outstanding
- Equipment Finance and Leasing: $1.39 trillion in financed investment; $4.7 trillion outstanding
- Leveraged Lending: $915 billion in issuance; $4.37 trillion outstanding
- Cash-Flow Lending: $1.22 trillion in issuance; $1.76 trillion outstanding
- Asset-Backed Securitization: $99 billion in issuance; $173 billion outstanding
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