COSTA MESA, Calif.,
Aug. 25, 2016 /PRNewswire/
-- Experian®, the leading global information
services company, and Moody's Analytics, a leading independent
provider of economic forecasting, today announced that current
credit conditions for small businesses are improving across most of
the United States. According to
the latest Experian/Moody's Analytics Main Street
Report, overall small-business delinquencies decreased
slightly from last quarter, with levels dropping at every stage of
delinquency. The total bankruptcy rate fell as well, though at a
slower pace than the previous year.
To download a copy of the Q2 2016 report, visit
http://www.experian.com/business-information.
"Small-business owners have done a great job of managing their
financial commitments and paying their bills on time over the past
few quarters," said Gavin Harding,
senior business consultant for Experian. "This has led to an
increased level of available capital, which could enable them to
expand or invest in their business to grow their enterprise. It
will be very interesting, however, to watch the current trends
unfold throughout the rest of the year, as administration and
potential policy changes — as well as the impact of Brexit and
other global events — could affect U.S. business behavior."
While current conditions ensure that small businesses have an
abundance of available credit, the average utilization rate was
down almost 22 percent from the same period in 2015. The report
found that this decline is the result of a slight increase in
credit limits and a steady increase in balances.
"Small businesses are doing well, and their near-term prospects
are good," said Mark Zandi, chief
economist for Moody's Analytics. "Delinquencies and bankruptcies
are steadily declining, reflecting solid sales, low interest rates
and generally light debt loads. The only blemish is for businesses
in the still-struggling energy and related industries."
Other highlights from the Q2 2016 report:
- The mining industry experienced the sharpest increase in severe
delinquencies and bankruptcies across all industries in the second
quarter
- The transportation and utility industries also experienced a
decline, with the average severe delinquency rate increasing by 30
basis points during the quarter
- Construction saw the strongest improvement, with severe
delinquencies dropping by nearly one-third in the last year and a
half
- Construction bankruptcy remains high in West Virginia and New Mexico, however, with rates of 0.59
percent and 0.44 percent, respectively
- Bankruptcy rates along the Eastern Seaboard tend to be below
the national average
In-depth insight and commentary from the Experian/Moody's
Analytics Main Street Report will be presented in a webinar on
Sept. 13 at 10
a.m. Pacific/1 p.m. Eastern.
If you would like to register for the event or for more
information, visit
http://www.experian.com/business-information.
About the Experian/Moody's Analytics Main Street
Report
Developed by Experian and Moody's Analytics, the
new Experian/Moody's Analytics Main Street Report brings
deep insight into the overall financial well-being of the
small-business landscape, as well as providing commentary about
what certain trends mean for credit grantors and the small-business
community as a whole. Key factors comprised by the Main Street
Report include a combination of business credit data (credit
balances, delinquency rates, utilization rates, etc.) and
macroeconomic information (employment rates, income, retail sales,
investments, etc.).
About Moody's Analytics
Moody's Analytics helps
capital markets and risk-management professionals worldwide respond
to an evolving marketplace with confidence. The company offers
unique tools and best practices for measuring and managing risk
through expertise and experience in credit analysis, economic
research and financial risk management. By providing leading-edge
software, advisory services, and research, including the
proprietary analysis of Moody's Investors Service, Moody's
Analytics integrates and customizes its offerings to address
specific business challenges. Moody's Analytics is a subsidiary of
Moody's Corporation (NYSE: MCO), which reported revenue of
$3.5 billion in 2015, employs
approximately 10,800 people worldwide and maintains a presence in
36 countries. Further information is available at
http://www.moodysanalytics.com/.
About Experian's Business Information
Services
Experian's Business Information Services is a
leader in providing data and predictive insights to organizations,
helping them mitigate risk and improve profitability. The company's
business database provides comprehensive, third-party-verified
information on virtually all U.S. companies, with the industry's
most extensive data on the broad spectrum of small and midsize
businesses.
By leveraging state-of-the-art technology and superior
data-compilation techniques, Experian provides market-leading tools
that proactively support the entire credit life cycle, enabling our
clients to find new customers, process new applications, manage
customer relationships and collect on delinquent accounts.
About Experian
We are the leading global information
services company, providing data and analytical tools to our
clients around the world. We help businesses to manage credit risk,
prevent fraud, target marketing offers and automate decision
making. We also help people to check their credit report and credit
score and protect against identity theft. In 2015, we were named
one of the "World's Most Innovative Companies" by Forbes
magazine.
We employ approximately 17,000 people in 37 countries and our
corporate headquarters are in Dublin,
Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
Experian plc is listed on the London Stock Exchange (EXPN) and
is a constituent of the FTSE 100 index. Total revenue for the year
ended March 31, 2016, was
US$4.6 billion.
To find out more about our company, please
visit http://www.experianplc.com or watch our
documentary, "Inside Experian."
Experian and the Experian marks used herein are trademarks or
registered trademarks of Experian Information Solutions, Inc. Other
product and company names mentioned herein are the property of
their respective owners.
Contacts:
Roslyn
Whitehurst
Experian Public Relations
1
714 830 5578
Roslyn.Whitehurst@experian.com
Twitter: @RozWhitehurst
Katerina Soumilova
Moody's Analytics
Communications
1 212 553
1177
katerina.soumilova@moodys.com
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SOURCE Experian