PayNet reports the PayNet Canadian Small Business Lending Index (CSBLI) increased for the third straight month to 120.1 in April 2017 from 118.7 in March 2017. Compared to March 2016 the CSBLI is up 1%.
 
“This release was a shocker ” states William Phelan, president of PayNet, Inc. “ The smallest Canadian businesses are expanding for the first time in 16 months.”
 
Since January, strong investment growth is exhibited in Transportation (+7%), Construction (+2%), and Agriculture (+3%).  Small business sectors with the most dramatic pullback in investment activity during the same period were Manufacturing (-3%) and Wholesale trade (-2%).
 
The PayNet Canadian Small Business Delinquency Index (CSBDI) 31-180 days past due declined 1 basis point (bp) to 1.09% in April 2017 from 1.1% in March 2017.  Compared to April 2016, delinquency decreased 8 bps and is the first year-over-year decrease in 26 months.

Construction delinquency rose by 2% (3 bps) while Wholesale delinquency fell by 13% (25 bps) compared to March 2017. Accommodation & Food, Agriculture, and Transportation also showed 1-2% monthly decreases in delinquency.
 
“Growth is still uneven with segments like manufacturing and wholesale trade in contraction mode, but the default of Canadian businesses will remain low” Phelan added.