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.