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Small businesses are struggling to repay borrowed debts #debt #smallbusiness

According to the Thomson Reuters/PayNet Small Business Lending Index, small business borrowing is down while “the percentage of firms late on repaying existing loans” increased.  These numbers account for a 5th straight month of decline “with index at it’s lowest point since January.”

Despite the drop, “PayNet CEO and founder Bill Phelan sees a glass half full in the numbers, noting that a delinquency of 2 percent or higher was the norm for most of the pre-crisis era when the lending index was at a similar level.” That explains the current delinquency numbers which fall just below the 2% rate.  On another positive note, recent economic growth numbers have the US at a 3.2 percent pace in the third quarter.  This is a 0.3% growth from last quarters 2.9% number.

With a continued growth rate and more stability now that a President has been elected, expect the numbers to improve moving forward.


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