TORONTO--(BUSINESS WIRE)--PayNet, the leading provider of small business credit data and analysis, reports that the PayNet Canadian Small Business Lending Index (CSBLI) increased 3% from 116.1 in March 2018 to 119.8 in April 2018, marking the fourth consecutive monthly uptick. Compared to the same month one year ago, the index is down 2%.
“This month’s release shows Canadian private businesses increasing borrowing and investment,” said PayNet President William Phelan. “While contracting on a year-over-year basis, an upward trend to month-over-month growth is underway.”
Five major industry groups expanded borrowing and investment in April: Accommodation and Food (13%), Construction (9%), Manufacturing (13%), Retail (10%) and Transportation (22%). Only two industry sectors – Wholesale (-7%) and Agriculture (-6%) – are contracting. The largest provinces are still showing expansion, with Alberta (10%), Manitoba (12%) and Quebec (10%) showing the most significant year-over-year increases.
According to the PayNet Canadian Small Business Delinquency Index (CSBDI), loans 30 days past due or more held steady at 0.94% from March 2018 to April 2018. Compared with one year ago, delinquency decreased 15 bps from 1.09%, marking the thirteenth consecutive year-over-year decrease after 25 months of year-over-year increases. Month-over-month, Manufacturing (-20bps) and Construction (-6bps) showed the largest delinquency decreases. Transportation (8bps) showed the largest increase in delinquency, while all other industries moved 3% or less. The movement of the provinces was mixed, with delinquency decreasing in British Columbia (-8bps) and increasing in Saskatchewan (9 bps).
“Minimal credit risk means conditions remain good for further expansion,” added Phelan. “Despite year-over-year contraction, the underlying trends are positive. Canadian private businesses are positioned to be a driver of growth for the Canadian economy.”
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.