There was an increase in borrowing by small U.S. businesses in June, as per the data released by PayNet Inc. The overall volume of financing to U.S. small businesses is measured by Thomson Reuters/Paynet Small Business Lending Index. As per PayNet, there was an increase of 4% in June.
From the data released by economists of US government, the unemployment rate has increased by 9.6% in July. As per the data released by PayNet, companies are avoiding new loans.
Index statistics
- As per the data of PayNet, moderate delinquent accounts or which are behind 30 days, there was a drop in June to 2.96 percent from 3.29 percent in May. This was the lowest rate since November of 2007 i.e., before the start of recession.
- The severe delinquent accounts which are more behind than 90 days, drop of 0.99 percent in June from 1.12 percent in May.
- The accounts which are behind 180 days or more or which are in default and not expected to be paid ever fell to 0.88 percent in June from 0.92 percent in May.