PayNet, a leader in small business analytics and risk management solutions, announces the PayNet Small Business Delinquency Index (SBDI), a new economic index that quantifies small business financial stress and default and provides early warning of future insolvency.

Because small businesses generally respond to changes in economic conditions more rapidly than larger businesses do, the PayNet Small Business Delinquency Index predicts future trends in financial stress with a three to six month lead time. Small businesses generally have fewer accumulated resources available to serve as a buffer against lean economic times, and therefore reflect changes in the underlying economy more quickly. 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.

“Small Business Delinquency Index provides leading indications of non-performing loans. Pinpointing rising risks by industry sectors and geographic regions helps regulators and bankers deal with financial problems sooner,” said William Phelan, president of PayNet.

The SBDI is the latest addition to PayNet’s family of indices including the Thomson Reuters/PayNet Small Business Lending Index (SBLI), further transforming data into intelligent information for the small business market. 

PayNet is the leading provider of credit ratings on small businesses enabling lenders to achieve optimal risk management, growth and operational efficiencies. PayNet maintains the largest proprietary database of small business loans, leases and lines of credit encompassing over 20 Million contracts worth more than $1 Trillion. Using state-of-the-art analytics, PayNet converts raw data into real-time market intelligence and predictive information that subscribing lenders use to make informed small business financial decisions and improve their business strategy.