Study: Small business Credit Quality at Highest Point of the Rebound Years

A dual-firm report on small business credit quality found that results in the second quarter reached the highest level since their study was launched in 2010.

The Experian/Moody’s Analytics Small Business Credit Index rose to a level of 111.7, up from the first quarter’s 108.9. It appears heightened consumer confidence is having a downstream impact on small business’ bottom lines and, thus, their collective credit quality. Experian/Moody’s noted that credit quality strengthened in every business size category, and that balance volumes declined in significant fashion over a three-month stretch.

“During this period of modest growth, small businesses have improved their credit profile by decreasing delinquent debt and meeting financial obligations in a more timely fashion," said Joel Pruis, Experian senior business consultant. Top performing states where businesses’ delinquency rates were well below the national average were Idaho, Wyoming, Arizona and Utah.

That’s not to say there aren’t challenges ahead for small businesses, including the rebirth of the debt ceiling battle in Congress and its ability to distort predictions of conditions going forward. But optimism exists among those behind the latest study that small business is as ready as it has been in a long time to sidestep it with minimal damage.

-Brian Shappell, CBA, CICP, NACM staff writer
See the extended version of this story and more analysis in the upcoming edition of eNews, available late Thursday afternoon at 

No comments:

Post a Comment