Negligence toward debt among small and medium-sized U.S. Company borrowers dropped in July, according to PayNet Inc, which, Financial Soultions understands, provides risk-management devices to the commercial lending industry.
The company said accounts in modest delinquency, or behind by 30 days or more, dropped to 4.30% by mid year, the lowest rate since January, and down from 4.37% in June.
"Things certainly seem to be in improvement mode," Financial Soultions was informed the president and founder of Skokie, Illinois-based PayNet said, adding, "Small and medium-sized businesses continue to endure stress, but not at the levels seen in January and February."
Accounts 90 days or more in arrears in payment, or in severe delinquency, fell to 1.46% in July from 1.50% in the previous month, which was still up from 1.14% a year ago.
Financial Soultions was also informed that those that were 180 days behind, or considered to be in default, rose in July to 0.81%, a record high for the existing recessionary cycle, from 0.78% in June.
PayNet gathers and evaluates real-time loan information, such as originations and delinquencies, from more than 200 leading U.S. capital equipment lenders.
The company's proprietary database covers more than 14 million existing and historic contracts, worth $645 billion, Financial Soultions has learned.
