Moderate Economic Growth Predicted by Small Business Debt Veteran
October 29, 2013
By Bob Coleman
Editor, Coleman Report
Says Thomson Reuters/PayNet Small Business Lending Index, signaling moderate growth ahead for the economy as a whole.
Writes Reuters, “Historically, PayNet’s lending index has correlated to overall economic growth one or two quarters in the future. Small companies typically take out loans to buy new tools, factories and equipment, so more borrowing can be an early harbinger of increased hiring ahead.”
And there is more good news on debt repayment.
“Delinquencies of 31 to 180 days held in September at 1.47 percent of all loans made, according to the Thomson Reuters/PayNet Small Business Delinquency Index. That’s a record low.
“Accounts overdue as a percentage of all loans have fallen steadily since rising as high as 4.73 percent in August 2009. “