ABL and factoring add US$173bn to US GDP and support 773,000 jobs

Asset-based lending (ABL) and factoring contribute approximately $173 billion annually to US real GDP and support an estimated 773,000 additional jobs, according to new research from the Secured Finance Network (SFNet).

The 2026 Secured Finance Economic Impact Study estimates that the two forms of secured finance increase annual US real GDP by around 0.5%, while also adding approximately $940 to real disposable income per household.

The research highlights the role of ABL and factoring in providing working capital to businesses, particularly as the US focuses on strengthening domestic manufacturing, supply chains and economic resilience.

According to the study, if ABL and factoring were unavailable, US businesses would lose an estimated $114 billion in financing, while a further $165 billion would move to higher-cost alternatives.

“But those businesses also need capital every day to purchase inventory, pay employees, fill orders and bridge the gap between production and payment.

“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.”

Working-capital-intensive sectors see biggest impact

The economic contribution is particularly pronounced in sectors with significant working capital requirements.

SFNet’s research estimates that access to ABL and factoring increases economic output by 3.9% in automotive, followed by 1.5% in construction, 1.4% in electronics, 1.2% in wholesale trade and 0.8% in transportation and trucking.

The study also points to the role of secured finance during periods of financial stress, when businesses may have limited access to conventional sources of credit.

Industry experts consulted as part of the research estimated that 27% of ABL clients and 40% of factoring clients would close if these financing options were unavailable.

Douglas S. Meade, Director of Research at Inforum, which conducted the economic modelling, said: “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 US economy.

“Our modelling work suggests that ABL and factoring generate a notable amount of economic activity in the US and key states.”

Texas and New York lead employment impact

The research also examines the economic contribution of ABL and factoring across five major US markets.

It estimates that the financing supports an additional 77,000 jobs in Texas, 73,000 in New York, 63,000 in Illinois, 57,000 in California and 44,000 in Georgia.

The study also found positive effects on economic output and household disposable income across all five states.

To calculate the wider impact, the analysis compared current economic conditions with a scenario in which ABL and factoring were unavailable.

SFNet worked with a steering group of secured finance leaders to develop assumptions covering access to funding, financing costs and potential business closures. Inforum then applied its Long-term Interindustry Forecasting Tool (LIFT) to model the wider effects on the US economy.

The findings underline the role of ABL and factoring not only as sources of working capital for individual businesses, but as part of the broader financing infrastructure supporting employment, supply chains and economic activity.