Defaults by small and medium-sized U.S. businesses on the loans, leases and lines of credit they use to finance capital equipment investment rose in September as lenders remained reluctant to extend fresh financing, PayNet Inc reported on Friday.
But accounts in moderate and severe delinquency decreased during the month, a potentially encouraging sign that some businesses borrowers are finding it easier to meet their obligations.
Accounts in moderate delinquency, or those behind by 30 days or more, fell to 4.22 in September from 4.35 percent in August, according to PayNet, which provides risk-management tools to the commercial lending industry. That is the lowest level since January.
Accounts 90 days or more behind in payment, or in severe delinquency, also improved modestly, slipping to 1.40 percent in September from 1.48 percent in August.
But accounts behind 180 days or more, or in default, rose to 0.85 percent in September from 0.81 percent in August. PayNet’s Small Business Lending Index, which measures the overall volume of financing, fell 22 percent year-over-year in September, a sign that lenders remain reluctant to extend credit to small and medium-sized businesses.
“It’s hard to imagine a robust recovery when you see numbers like this,” said Bill Phelan, president and founder of Skokie, Illinois-based PayNet.
PayNet’s data comes one day after the U.S. Commerce Department reported the economy grew in the third quarter as government stimulus helped lift consumer spending and home building.
