TORONTO--(BUSINESS WIRE)--PayNet, the leading provider of small business credit data and analysis, reports that the PayNet Canadian Small Business Lending Index (CSBLI) decreased 3 percent from 115.9 in November 2017 to 112.6 in December 2017. Compared to the same month one year ago, the CSBLI is down 6 percent.
“Canadian small businesses closed 2017 with lower investment in property, plant and equipment despite ending the year at all-time lows in short-term delinquencies,” said PayNet President William Phelan.
Year-over-year, sectors experiencing growth were Transportation (23 percent), Construction (15 percent) and Other (17 percent). Accommodation and Food (-6 percent) remained weak in recent months although the severe weakness of earlier this year seems to have abated. Agriculture (-5 percent), Manufacturing (-4 percent) and Wholesale (-7 percent) also saw declines in loan originations. At a provincial level, origination trends were down in December versus November in Ontario (-0.2 percent), Quebec (-1 percent) and Saskatchewan (-2 percent) relative to year-over-year growth of 6 percent, 5 percent and 9 percent, respectively.
Robust financial health conditions are reflected in the PayNet Canadian Small Business Delinquency Index (CSBDI), which shows declining delinquency levels in most industries over the last year and over the last three months. Overall, loans 30 days past due decreased again from 0.86 percent in November to 0.82 percent in December. Compared to December 2016, delinquency decreased from 1.10 percent, marking the ninth consecutive year-over-year decrease. Every industry PayNet tracks has an overall delinquency level at least 30 percent below 2005-2006 levels. Only Manufacturing and Other experienced an uptick in delinquencies of 0.20 percent and 0.01 percent, respectively. Over the last three months, overall delinquency levels have declined in every province and region in Canada, and serious delinquency levels have declined in every province and region with the exception of Saskatchewan, where they have held steady.
“Canadian small businesses are well-positioned to borrow and invest in 2018,” added Phelan. “Next month’s release will show if this decrease is a pause or part of a longer trend.”
About PayNet, Inc. Canada
PayNet, Inc. Canada is the premier provider of risk management tools and market insight to the commercial credit industry, collecting real-time loan information from leading Canadian lenders and turning it into actionable intelligence. The company's proprietary database -- updated weekly -- is a growing collection of commercial loans and leases, worth over $92 billion. Using state-of-the-art analytics, PayNet converts raw data into real-time market intelligence and predictive information that subscribing lenders use to manage risk, lower operating costs, originate more loans and improve their business strategy. For more information visit paynet.ca and sbinsights.ca.