2017 was a great year for small business investing. With small business confidence at an all time high, investing from large banks increased while small business projected revenue benefit from the uptick in loans. According to PayNet. “the leading provider of small business credit data and analysis”, while investment increased and defaults remained low, there are still “some warning signs in financial health [that] are starting to emerge.”
Per the Thomson Reuters/PayNet Small Business Lending Index With tax cuts taking certain stage in America, solid investment support came in the sectors of Construction (+7%), Transportation (+13%), and Administrative and Waste Services (+5%). Despite these increases, other areas saw decreases in investment including “Information Services (-8%), Professional Services (-3%), and Health Care (-2%).” These percentage changes were taken “on a three month rolling basis compared to three months ago.”
The Thomson Reuters/PayNet Small Business Delinquency Index (SBDI) had slightly negative news as “31-90 days past due increased 2 basis points (bps) from 1.36% in November 2017 to 1.38% in December 2017; this is the highest it has been since November 2012. Compared to one year ago, delinquency increased 6 bps.” This new change with the expected interest rate hike, could result in a slow down of lending which in turn could lead so a slow down in economic growth.