Small Business Loan Delinquency Drops In April
Written by Ken Gaebler
While delinquencies fell last month they are still higher than a year ago.
In a sign of what may be good news for small businesses, a new report finds that entrepreneurs may be getting a handle on paying their small business loans.
Reuters reports that PayNet, a company that provides risk management tools and market insight to the commercial credit industry, says the number of small business loans that were delinquent in April fell to 4.15 percent - the lowest level since December.
While the report finds that the .22 percent drop was the largest one month improvement since April 2004, the number is still significantly higher than where it stood a year ago (3.51 percent) or the monthly average since 2000 (4.08 percent).
But there is some bad news for small businesses as the wire service points out that the report finds loans that were 90 days rose to 1.46 percent in April while those in default rose from 0.69 percent to 0.74 percent.
A report last month from the National Small Business Association found that a growing number of SMBs were turning to credit cards to help fund their businesses as more traditional forms of financing have dried up.
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