Banking and Finance Industry Research

Strategic Insights November 2019

The PayNet Small Business Lending Index (SBLI) fell 3.3 points to 139.4 in September but remains in the top 15% of historical readings. Compared to a year ago, the SBLI is up 4.7%. The SBLI 3-month moving average ticked up on both an annual (+1.0%) and monthly (+0.5%) basis.

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Strategic Insights October 2019

The PayNet Small Business Lending Index (SBLI) fell 8 points to 142.2 in August and is down 5.5% compared to a year ago. The SBLI 3-month moving average also fell and is now below its year-ago level for the first time in more than two years. Despite the decline, the SBLI is still in the top 10% of historical readings.

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Strategic Insights September 2019

The PayNet Small Business Lending Index (SBLI) rebounded in July, jumping 15 points (+11% M/M) to 152.2. The SBLI now stands near its all-time high and 5% above year-ago levels. The SBLI 3-month moving average fell 1.3% on a monthly basis and ticked up slightly on an annual basis.

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PayNet Strategic Insights August 2019

The PayNet Small Business Lending Index (SBLI) fell nearly 23 points (14.5%) to 135.0 in June — its sharpest monthly decline on record and lowest point since December — and is now 6.8% below year-ago levels.

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PayNet Strategic Insights July 2019

The PayNet Small Business Lending Index (SBLI) fell slightly to 157.2 in May but is up 1.3% compared to twelve months ago and remains near an all-time high. The SBLI 3-month moving average rose on a monthly basis and currently stands 2.4% above its year-ago level.

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Q2 2019 Credit Outlook for Main Street

PayNet's Q2 2019 report for credit conditions on Main Street and where they're heading.

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PayNet Strategic Insights June 2019

The PayNet Small Business Lending Index (SBLI) rose 20.1 points to an all-time high of 159.7 in April and is now up 11.4% compared to year-ago levels. The SBLI 3-month moving average also rose on a monthly basis and currently stands 3.2% above its year-ago level.

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What Are Small Businesses

80% of small businesses are still run by the same individual or family that started the business. Raddon VP of Research Bill Handel lays out some critical statistics about the longevity and revenue size of small businesses and how those impact their credit needs.

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Wrap Up

60% of small businesses are in growth mode, yet at the same time, there's been a decline of small business entrepreneurship. The reason for the decline? America's broken credit system. PayNet President & Co-Founder William Phelan lays out the vital impact small businesses have on the economy--and why fixing the credit system is an imperative initiative.

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Where Small Businesses Like to Bank

71% of small businesses use one of the Top 6 banks as their primary financial institution, compared to just 39% of consumers. Raddon VP of Research Bill Handel lays out the two main reasons for the big banks' dominance in the small business lending space. Meanwhile, PayNet President & Co-Founder William Phelan provides insight into how this phenomenon represents an opportunity for community financial institutions.

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PayNet Strategic Insights May 2019

The PayNet Small Business Lending Index (SBLI) fell 6.5 points to 140.0 in March and is now down 3.8% compared to year-ago levels. However, the index remains in the top 10% of all historical readings. The SBLI 3-month moving average rose on a monthly basis and currently stands 0.7% above its year-ago level.

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PayNet Strategic Insights April 2019

The PayNet Small Business Lending Index (SBLI) remains in the top 3% of all historical readings. While the SBLI edged down 2.4 points to 146.9 in February, it rose 2.1% on an annual basis, its 16th year-over-year increase in the last 17 months.

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Decline of Small Business Lending

A new study from Raddon and PayNet suggests that lending practice reforms will connect small businesses with credit and boost economic performance.

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Rise of Fintech

A decline in credit access in large banks has led to the rise of the fintechs in the lending space. The percentage of small businesses borrowing online has gone from 14% in 2014 to 24% in 2018--a dramatic jump whose implications should concern financial institutions.

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Small Biz Big Impact

The 30 million small businesses in the U.S. account for about half of the GDP. Raddon VP of Research Bill Handel and PayNet, Inc. President William Phelan explain small businesses' vital role as a growth driver in the U.S. economy—and how this explains the decline in GDP since the Great Recession.

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The Broken Credit System

The hypothesis: big bank lending was down and it was impacting local economies. Drawing on the large pool of PayNet data, Harvard laid out a study to see if this was true--and if so, the reasoning behind it.

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PayNet Strategic Insights March 2019

Business investment picked up in the fourth quarter after a deceleration in Q3, but overall economic growth cooled and is expected to weaken further in 2019. Small business sentiment has also softened thus far in 2019, in part because of the January government shutdown.

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Credit Outlook for Main Street

Booming had been the story about Main Street America with the releases of data for most of 2018. Booming is proving to be short-lived as we see in this latest report.

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REVIVING MAIN STREET AMERICA

While the country enjoys unprecedented levels of small business optimism, access to credit will either boost or curtail economic growth within this high-impact sector, according to a new study.

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New Study Demonstrates High Lift from Commercial Scores Even in Cases Where Credit Files Are "Thin"

A PayNet client asked how predictive PayNet’s scores were when the borrower’s credit file was thin, with few prior contracts. To evaluate this, PayNet conducted two analyses using PayNet MasterScore® v2 at time of origination for transactions originated from 2005 to 2012...

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What is the Impact of Repossessions on a Borrower's Credit Score?

A PayNet client operating in the US and Canada asked about the impact of repossessions of a single or several trucks on a large borrower’s credit profile.

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What is the Credit Quality of Marketplace (Alternative) Lenders?

Marketplace refers to a broad category of companies providing capital to businesses and consumers at a lower cost than traditional channels using a combination of technology, data, analytics, and traditional credit systems. The Marketplace lending model is generally high risk with high return.

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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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FILLING THE LENDING VOID

As small businesses struggle amidst the shutdown-induced SBA program closure, they may have other options.

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