To avoid the next high-risk-lending bubble and to find the most profitable business customers, lenders need to consider the differing risk profiles of borrowers and industries. The PayNet Small Business Outlook presents the historical default rates for the past 5 years and default estimates for the next year for small businesses in key industry segments. This Outlook is derived from PayNet AbsolutePD®, created in collaboration with Professor Darrell Duffie, the Dean Witter Professor of Finance at Stanford University Graduate School of Business. PayNet AbsolutePD estimates default rates for business borrowers, portfolios, or industry sectors to more safely and efficiently find and manage profitable business customers.

PayNet draws on its proprietary database, the richest and largest collection of small business loan and lease data, to perform additional analyses, such as PayNet’s analysis of trends in small business delinquency. In addition, the Thomson Reuters/PayNet Small Business Lending Index is widely considered to provide further insight into the state of small business investment.

Released on a quarterly basis, the Small Business Outlook provides a roadmap for profitable business decisions and helps avoid dead ends.

Historical Default Rates
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