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March 31, 2020

Large-Scale Funding Program Needed to Bolster Asset-Based Finance During Crisis

  • The federal government should have a large-scale funding program in place to bolster asset-based finance during the current crisis, author David Powell argues in his latest research.
  • The asset-based finance (ABF) industry is critical to the functioning of the economy. In 2018, the value of ABF financing was an estimated $416 billion of vehicles and equipment for consumer and business customers in Canada, and the industry supports a broad network of dealers, manufacturers, distributors, vendors and brokers, and their customers across Canada.
  • “In a profoundly disrupted market, the policy objective should be to restore liquidity to allow the financial services sector to continue offering financing to credit-worthy consumers and businesses in support of the Canadian economy, and that must include the asset-based finance industry,” says Powell.
David Powell
David Powell

David Powell is the former President & CEO of the Canadian Finance & Leasing Association.