Today Experian released the Q4 2016 Experian/Moody’s Analytics Main Street Report. The report offers deep insight into the overall financial well-being of the small-business landscape, as well as providing commentary around what certain trends mean for credit grantors and the small-business community as a whole.
Delinquency Rates Decline Sharply
Small business delinquency rates fell throughout 2016 at a slower pace compared to 2015. Q4 saw a sharp decline in delinquency across multiple industry sectors. Oil pricing may be what’s drivingThis was likely due in part to OPEC’s announcement to cut supply over the next several months.
Small Businesses Feeling Confident as Balances Increase
Q4 loan balances increasing 7.7 percent from the third quarter and 10.3 percent from last year. Despite this activity, utilization remains below 40 percent, leaving plenty of capacity for businesses to expand using available credit.
Business sentiment among business owners remains positive with the National Federation of Independent Business Owners reporting a sharp increase in small-business owner confidence in November and December.
Nevada Roars Back
Nevada was particularly hard-hit during the Great Recession. Small businesses in the state have struggled with credit ever since. In the fourth quarter Nevada’s severe delinquency rate fell to 8.94 percent, the lowest level observed in the available history for the state. Eight of eleven industries in Nevada saw delinquency rates decline from the third quarter of 2016.
Experian has published the contents of our report in an interactive web page, complete with interactive charts and graphs.
