For most banks and finance companies with more than $1 billion in assets, commercial lending is typically segmented into Large Corporate, Middle Market, and Business Banking. “Middle Market” and these other segments are generally understood to describe a type of borrower, whereas “ABL” (asset based lending) refers to a type of loan.
Banks in and around Boston have money to lend and are looking for deals. Interest rates on revolving lines of credit are currently pricing at LIBOR + 350 for commitments of $2 million to $10 million, and as low as LIBOR +175 for larger deals.
There were not a lot of positive signals from the lenders gathered this morning at the Langham Hotel in Boston for TMA’s annual “Asset-Based Lending Panel”.