PayNet Index shows positive news

2/3/2012

The Thomson Reuters/PayNet Small Business Lending Index recently released its December numbers, revealing an increase of 19 percent, Reuters reports.

This marks the 17th straight month in which the index has risen by double-digits, and at 112.6 is now on par with 2007 levels.

"The data show there's some underlying strength," PayNet founder Bill Phelan said in an interview, as quoted by the news source. "When you get these capital project investments, you can really move the needle on the economy."

With these figures, it can be reasonable to assume that small business growth will continue in the coming months.

On the other hand, accounts in moderate delinquency - or 30 days or more behind payment - rose 0.3 percent from 1.53 to 1.56 from November to December. This was the first time it has increased in nearly two years.

"It certainly is something to keep an eye on," Phelan added.

A recent Federal Reserve survey echoed PayNet's findings, as domestic banks reported that although their lending standards hadn't changed much, they still experienced "somewhat stronger" loan demand over the past three months.