White Papers
Case Study: Business Banking Loan Portfolio Growth
This case study describes a regional bank's experience using PayNet AbsolutePD and PayNet's Small Business Indices to organically grow its portfolio.
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Achieving Accurate Small Business Credit Ratings
Behavioral based credit models consistently outperform financial statement based models lacking proper small business data.
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Because You Asked: New Study Demonstrates High Lift from Commercial Scores Even in Cases Where Credit Files are "Thin"
PayNet conducted a study to determine if the predictive lift of PayNet MasterScore® v2 degrades as credit files reflect fewer contracts.
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Because You Asked: What is the impact of repossessions on a credit score?
PayNet analyzed the impact of repossessions of a single or several trucks on a large borrower's credit profile.
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Because You Asked: What is the credit quality of Marketplace Lenders?
PayNet analyzed the portfolios of alternative lenders to determine the absolute level of credit risk and differentiate by lender type.
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Achieving Greater Predictive Power
Credit scores rank the risk of borrowers by assessing the average historical default rates of borrowers with similar characteristics. Probabilities of default, on the other hand, take into account constantly changing economic conditions when projecting the future default rate of a borrower. Each provide significant applications in the credit risk management process.
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PayNet AbsolutePD® White Paper
This white paper outlines some key innovations of the PayNet AbsolutePD® Model. The Model provides statistical estimates of probabilities of default, over various forecast horizons, of private firms, based on their payment histories and various macroeconomic variables. It is well suited to applications in which there are no timely borrower-level financial statement histories available.
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Thomson Reuters/PayNet Small Business Lending Index White Paper
This paper will briefly describe the methodology behind the Small Business Lending Index (SBLI), a cobranded Thomson Reuters/PayNet product, and examines its ability to signal the future direction of the U.S. Leading Economic Indicators Index (LEI). The index measures the volume of new loans made to Small Businesses, indexed so that January 2005 equals 100. Small Businesses generally respond to changes in economic conditions more rapidly than do larger businesses, so this statistic tends to be a leading indicator of the economy.
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Thomson Reuters/PayNet Small Business Delinquency Index White Paper
This paper examines the predictive qualities of the Thomson Reuters/PayNet Small Business Delinquency Index (“SBDI”) as a leading indicator of financial stress and macroeconomic trends in the United States. The SBDI is designed to gauge small business financial stress and default risk, providing early warning signals of future insolvency across multiple sectors of the economy.
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PayNet Small Business Delinquency Index
This paper examines the predictive qualities of the PayNet Small Business Delinquency Indices (SBDI) as leading indicators of financial stress and macroeconomic trends in the United States. PayNet has a rich data set that has been statistically proven to be a reliable indicator of future U.S. economic trends. The SBDI are designed to gauge small business financial stress and default risk, providing early warning signals of future insolvency across multiple sectors of the economy. The SBDI are defined at the national and state levels, including industry segmentation for Agriculture, Construction, Health Care, Retail, Transportation, and General Industries. In total, PayNet developed 365 indices for the entire U.S., all 50 states, six industries nationally, and six industries for each state.
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PayNet Small Business Lending Index
This paper will examine the predictive qualities of the PayNet Small Business Lending Indices (SBLI) as leading indicators of macroeconomic and industry trends in the United States. The SBLI are designed to gauge small business lending, providing early signals of future economic growth, demand for capital, and business fixed investment across multiple sectors of the economy. The purpose of this whitepaper is to discuss the results of a sequence of economic tests which quantitatively evaluate the extent to which the SBLI are indeed reliable leading indicators of macroeconomic and industry trends.
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PayNet Small Business Default Index
This paper analyzes the predictive qualities of the PayNet Small Business Default Index (SBDFI) as concurrent indicators of financial distress. The SBDFI measure the percentage of loans and leases to small businesses that have defaulted at the national, state and industry levels. The purpose of this whitepaper is to discuss the results of a sequence of regression analyses which quantitatively evaluate the extent to which the SBDFI are indeed reliable indicators of financial distress.
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