PayNet Launches Recession Readiness Tools to Protect Loan Portfolios

Digital Lending, Commercial Credit, Small Business Credit, Enterprise Risk Management, Credit Risk Modeling

PayNet teams up with Keybridge to offer forward-looking risk management tools to lenders

SKOKIE, Ill.Sept. 10, 2019 /PRNewswire/ -- PayNet, an Equifax company that helps businesses acquire and manage relationships with small and medium enterprises (SMEs), today launched a series of recession readiness tools. These tools help commercial lenders assess gaps in their commercial credit exposures so they can develop a plan to deal with the next recession. Recession Ready delivers scenario analyses and advice on the likely next recession, industries and geographies impacted and possible credit losses.  

Stress Tests and Expected Loss planning tools are offered in partnership with Keybridge Research LLC, a leading economic and public policy consulting firm. Combined with insights from Keybridge economists, Recession Ready provides a comprehensive view of a lender's portfolio and its projected performance."We're operating in an uncertain economic environment and these tools help credit providers think through and plan for the next recession," said William Phelan, SVP and General Manager at PayNet. "Recession Ready gives them confidence to continue making loans as concerns grow over a looming recession."

Recession Ready includes the following:

  • Estimates of Probabilities of Default for each business borrower and the lender's portfolio – up to eight quarters ahead.

  • Stress Test Simulator generates probability of default predictions at the individual obligor and portfolio levels based on your anticipated recession scenario.

  • Expected Loss enables lenders to derive expected losses under current and stress tested scenarios.

  • Recession Monitor provides monthly updates on the likelihood of a recession.

  • Recession Severity Index provides monthly assessments of the likely severity of the next recession. 

  • Industry and State Recession Elasticity Metrics illustrate how a recession is likely to impact different sectors of the economy in different ways and to different degrees.

  • Access to world-class leading economists on a one-on-one basis to help you think through the impact on your business.

"This partnership is a natural extension of our long-term relationship with PayNet and gives lenders a comprehensive set of data-driven tools with economic insights to make more informed decisions," said Jeff Jensen, a Senior Director at Keybridge. "While consumer spending is strong, certain industries like manufacturing continue to struggle, suggesting that more troubling times could be fast approaching. Data matched with economic insights is a powerful combination for lenders and can help reveal hidden risks in a financial institution's portfolio during a recession."

"During the financial crisis, lenders pulled back from small business lending, removing a lifeline for Main Street companies," added Phelan. "It's happening again as mounting concerns over trade, tariffs, and a global slowdown are weakening confidence. Recession proofing now will keep much-needed capital flowing to small businesses in the event of a downturn."

For more information on PayNet's Recession Ready, please visit:

About PayNet
PayNet, Inc., an Equifax company, is the leading provider of credit ratings on small businesses enabling lenders to manage credit risk, grow earning assets and operate credit processes at a lower cost. PayNet maintains the largest proprietary database of small business loans, leases and lines of credit encompassing over 24 million contracts worth over$1.6 Trillion. Using state-of-the-art analytics, PayNet converts raw data into real-time marketing intelligence and predictive information that subscribing lenders use to make informed small business financial decisions and improve their business strategy. For more information, visit 

About Keybridge
Keybridge is a boutique economic and public policy consulting firm that serves as economists, policy experts, and strategic advisers to a diverse clientele. Keybridge provides its clients with a suite of analytical and advisory services, ranging from strategic planning and policy analysis to data analytics and independent validation. Keybridge's macroeconomic practice area helps clients anticipate key shifts in the global economy and understand the likely impact on their business, industry, and operating environment. Keybridge takes pride in developing long-term partnerships with clients in order to operate as a natural extension of their organization and serve as trusted advisers on all issues at the intersection of economics and public policy.

Media Contact:
Joe LoBello
LoBello Communications