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Index Shows Jump in Small-Business Lending

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  • Description

    Paynet President William Phelan weighs in on the current state of small business.

  • Duration 3:32
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This points that Chris from Iraq by thank you loyal the engine of economic growth -- America may be making a little bit of a comeback here.

Report out today by -- -- and Thomson Reuters shows more small businesses are borrowing money.

You the details Chicago -- a fox -- exclusive.

Is William fail and president and co-founder of paid at -- right William your small business lending and exit came out today what does -- tell.

It's.

Well what we can see as we've reached a milestone for small businesses.

And there really are poised to help keep the US side of a double dip recession.

As you know as you mentioned with -- as -- as you may or may not know we track about 840 billion dollars worth the small business investments.

We -- that every month so this is a real time look into pretty much the heartbeat of -- of the -- small business economy.

And what we see is that the index jumped in 99 point seven last month that's a pretty good.

Double digit increase over and over last year and it really legacy -- really surprising thing is it shows a lot of acceleration.

In the amount of investment going on by millions of these small businesses.

And that acceleration I think is it interest in -- it's really important when you look at the historical context of this number.

To -- small businesses are borrowing money they're investing -- in net PP any property plant equipment.

But not human -- -- or at least not at this point time.

Well -- The that you -- its investment in property plant equipment and these are our key investments for millions of small companies these are companies that are.

Growing bear.

There are construction equipment fleets there transportation fleets or whatnot.

And I mean ultimately we're not tracking employment data but ultimately you would think that.

There'd be some people would be put to work with some of the in this expansion of property plant equipment you just -- make sense that you just need some people to run these things.

Certainly most of most small businesses that you enjoyed a lot of productivity improvements.

As a result of the recession had been forced to make hard cuts.

And they've come out of the yeah recession much stronger so you know we began looking at this in this index in 2005.

At a hundred.

Jumped all the way up to 133 -- fell down to 66 so -- 99 point seven.

As you know we're we're really excited about this number because it really shows there's a lot of -- strength in the small business economy.

Do you look at particular industries as well William -- -- some that are stronger than others in the small business perspective right now.

Well there certainly are we did look at some industries in for example transportation.

Who were hauling more goods and services cross country so that was that rose at a double digit increase.

Another surprise is manufacturing and actually did rise at a double digit digit increase of 11%.

So we're seeing even you know across all of a larger.

A number of industries that we're that -- some underlying strength.

I think that's a big positive and you know their financial health -- so much better as well all these companies have.

I improve their financial profile so there are there are much better shape now than they certainly word any time before the recession.

Am seeing as well that -- loan delinquency.

Thirty days or more is certainly down as well nineteen consecutive months that has fallen William.

Good to see as always thank you.

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