Let’s delve into the Small Business Indices, essential tools offering insights into small business lending, delinquency, and default data. Updated monthly, these indices shed light on commercial credit trends across industries and regions.

Who Benefits from the Small Business Lending Index?

The Small Business Lending Index caters to economists, policymakers, lenders, equity hedge funds, and government entities. With one of the largest databases in the U.S., these indices provide actionable insights for various stakeholders.

Breaking Down Key Definitions

Here’s a breakdown of key terms:

• Small Business: Any borrower with debts under a million dollars in Equifax’s database.
• Small Business Lending Index (SBLI): Measures new commercial small business loans and leases issued in the past 30 days in the U.S. and Canada.
• Small Business Delinquency Index (SBDI): Indicates the percentage of small business loans overdue by various timeframes in the U.S. and Canada.
• Small Business Default Index (SBDFI): Shows the percentage of small business loans and leases that defaulted within the last 12 months in the U.S.

Harnessing Data for Informed Decision-Making

Organizations can leverage the Small Business Indices as leading indicators of economic trends. Executives, economists, policymakers, investors, and regulators can use these insights to understand market conditions, assess risk exposure, and benchmark their portfolios.

Utilizing the Indices: A Lender’s Perspective

Lenders can utilize the Small Business Indices to benchmark origination and performance trends, set credit policies, and inform model builds. For instance, a national lender monitors lending activity regionally and by industry to adapt their strategies.

A Real-World Example

Consider a case study involving an Equifax customer. This lender uses the Small Business Indices to monitor lending activity and assess portfolio risk. By staying ahead of market trends, they can make informed decisions and adapt their strategies accordingly.

Accessing the Small Business Indices

These indices are updated monthly and are available for purchase on the Equifax website and through the Risk Insight Suite (RIS). RIS offers an interactive platform where users can explore origination, delinquency, and default trends across states and industries.

With the Small Business Indices at your disposal, navigate economic uncertainties confidently, ensuring resilience and adaptability in today’s dynamic business environment.

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