Commercial lending to reach $29.37b by 2030

Access to large sums of money, shorter application processes, and low interest rates boosted its growth.

The global commercial lending industry is expected to reach $29.37b by 2030, or a compound annual growth rate (CAGR) of 13% from 2021 to 2030.

The industry was valued at $8.82b in 2020, according to data from Allied Market Research.

Access to large sums of money, shorter loan application processes, and low interest rates have boosted the growth of the global commercial lending market, it said.

On the other hand, strict qualifying criteria and repayment schedules hinder the market growth.

Technological developments in commercial lending are expected to open lucrative opportunities in the future.

However, several banks reported that they are overburdened by the rise in commercial loading during the pandemic as firms continue to seek financing, according to Allied Market Research

By type, the secured lending segment held the largest share in 2020, accounting for nearly three-fifths of the global commercial lending market. The segment is expected to register the highest CAGR of 14.6% during the forecast period on the back of growth of the real estate industry, the research said.