Knowledge is the most powerful tool for making business decisions when visibility is limited in the volatile small business lending and leasing environment. Quantified knowledge gives financial institutions a substantially greater ability to gauge a situation, establish strategies and direct a more efficient operational plan.
PayNet leverages the extensive breadth and depth of its proprietary database to provide unique insight to the small business credit industry. While the insight may take the form of analytics to characterize trends in the small business credit industry, forward-looking estimates of defaults or comparisons of a business to its peers within the industry, the results are improved knowledge for better decisions.
The Small Business Lending Index is a Thomson Reuters/Paynet product available monthly. Based on new commercial loan and lease originations by major lenders in PayNet’s proprietary database, this index measures the volume of loans to small businesses normalized to January 2005. Small businesses generally respond to changes in economic conditions more rapidly than do larger businesses, so this statistic is a leading indicator of the economy.
The Thomson Reuters/PayNet Small Business Delinquency Index (SBDI) measures small business financial stress and default risk at the national level providing early warning of future insolvency. The SBDI provides insight to financial services executives, economists, policy makers and regulators in order to understand the stage of the business cycle and to set credit oversight policies.
The PayNet Small Business Delinquency Index (SBDI) quantifies small business financial stress and default risk providing early warning of future insolvency. The SBDI is useful for explaining the future health of the U.S. economy on different segmented levels and with various lead times. The SBDI works to predict financial stress on the national, industry, and state levels for nonperforming loans, industry loan delinquency rates, and states’ municipal bond spreads.
On a quarterly basis, PayNet produces an outlook of the small business economy. Our Small Business Economic Outlook illuminates the small business economy by presenting the borrowing activity and actual risk behaviors of millions of small U.S. companies. A Risk Outlook provides loan default rates of small businesses for the previous 7 years and utilizes forward risk estimates from PayNet AbsolutePD®, a probability of default tool.
PayNet recognizes the importance of providing superior service to lender members. Our team strives to understand members’ businesses in order to recommend profitable solutions.
PayNet improves the financial performance of small business lending by providing information tools to help manage risk, increase operational efficiency, reduce losses and improve business strategy. PayNet tracks the financial benefit we bring to our clients. Several examples of the financial benefits we have brought to clients are summarized here.
For a better understanding of the technical background of some of PayNet’s offerings, refer to these White Papers.
PayNet believes it can benefit participants in the small business credit industry through knowledge transfer. PayNet leverages its expertise to publicly contribute insightful documentation and commentary on an on-going basis.
PayNet personnel frequently prepare and participate in presentations at industry conferences. Recent examples are available here for review.
PayNet conducts webinars to impart knowledge on the small business credit industry or to provide education and clarification of its products and services. View a recent webinar for PayNet AbsolutePD®, our revolutionary tool for assessing the probability of default.