Tags: Small | Business | Lending | Rises

Small-Business Lending Rises for Third Straight Month

Wednesday, 03 Mar 2010 02:41 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Small U.S. businesses boosted borrowing in January for the third straight month, although lending remains well below levels at the start of the recession, and delinquencies rose, PayNet Inc reported on Tuesday.

The company's Small Business Lending Index, which measures the overall volume of financing, rose a seasonally adjusted 4 percent in January, month-on-month, after advancing on a seasonally adjusted basis in November and December, PayNet said.

The index fell just 3 percent in January from a year earlier, the smallest decline since the onset of the recent recession, following a downwardly revised 10-percent decline in December.

"There's been a lot of damage done, but at least we are moving in the right direction," said Bill Phelan, PayNet's president and founder. "It's a positive improving story that points us toward a recovery in the small business economy.

Still, he said, the January index reading of 80.8 was 39 percent below its pre-recession peak.

Meanwhile, moderate delinquencies on loan payments rose to the highest since the recession began, and lenders will likely see defaults at "elevated levels" for the next 12 months, Phelan said.

Trends in loan defaults tend to lag other economic indicators, Phelan said.

"We really see it as an aftershock of the recession," he said.

Accounts behind 180 days or more, or in default and unlikely to ever get paid, rose to 0.92 percent of total receivables in January from 0.89 percent in December, according to PayNet, which provides risk-management tools to the commercial lending industry.

Accounts in moderate delinquency, or those behind by 30 days or more, rose in January to 4.39 percent from 4.31 percent in December, PayNet said Tuesday.

Accounts 90 days or more behind in payment, or in severe delinquency, rose to 1.38 percent in January from 1.37 percent in December.

"These credit problems are going to linger on and be at elevated levels for the next 12 months," Phelan said.

PayNet collects real-time loan information, such as originations and delinquencies, from more than 200 leading U.S. capital equipment lenders.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Ebola Patient's Fiancee Leaves Hospital; States Order Quarantine

Saturday, 25 Oct 2014 19:42 PM

The fiancee of the New York City Ebola patient was released from the hospital where she has been under observation, as s . . .

Hundreds Give Up US Passports After Tax-Disclosure Rules Start

Saturday, 25 Oct 2014 19:31 PM

The number of Americans renouncing U.S. citizenship increased 39 percent in the three months through September after rul . . .

US Expands States Where Gay Marriage Recognized, Holder Says

Saturday, 25 Oct 2014 19:14 PM

The U.S. government added six more states to the list of those whose same-sex marriages are recognized by the federal go . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved