COSTA MESA, Calif., Aug. 26, 2014 /PRNewswire/ -- Experian®, the leading global information services company, today announced that following a tough first three months of the year, small-business credit conditions rebounded in the second quarter of 2014 to reach their highest level on record. According to the most recent Experian/Moody's Analytics Small Business Credit Index, the improvement was driven by an expansion in outstanding credit balances as well as a decline in overall delinquency rates. These and other business credit and macroeconomic trends impacting small-business health will be presented in Experian's Quarterly Business Credit Review Webinar on Sept. 4, 2014, at 1 p.m. Eastern time.
To register for the Webinar, visit Q2 2014 Experian's Quarterly Business Credit Review.
"Small businesses are doing as well as they have since before the Great Recession," said Mark Zandi, chief economist at Moody's Analytics. "Credit to small businesses is flowing more freely, and they are paying their bills more quickly. Prospects are good across most industries and much of the country."
Findings from the report also showed that small businesses have fared better in Q2 2014. During the second three months of the year, the average commercial risk score* was 61.4, up 5.8 percent from the previous year. Additionally, small-business bankruptcies improved by nearly 12 percent, while small businesses also reduced the number of days they paid their bills beyond contracted terms by 4.5 percent from Q2 2013.
"Unlike their larger counterparts, many small businesses rely on consumer spending to help with day-to-day expenses as well as to pay down outstanding debt," said Joel Pruis, Experian's senior business consultant. "Now that the harsh winter months are behind us and shopping has picked back up again, we are beginning to see the immediate impact consumer spending has on small businesses being able to pay their bills. If the positive trends we have observed in Q2 continue, it can lead to a wider availability of credit and more growth opportunities."
About the Experian/Moody's Analytics Small Business Credit Index
Experian joined forces with Moody's Analytics, a leading independent provider of economic forecasting, to create a business index and detailed report that provides insight into the health of U.S. businesses. The Experian/Moody's Analytics Small Business Credit Index is reported quarterly to show fluctuations in the market and discuss factors that are impacting the business economy.
About Experian's Business Information Services
Experian's Business Information Services is a leader in providing data and predictive insights to organizations, helping them mitigate risk and improve profitability. The company's business database provides comprehensive, third-party-verified information on virtually all U.S. companies, with the industry's most extensive data on the broad spectrum of small and midsize businesses.
By leveraging state-of-the-art technology and superior data compilation techniques, Experian provides market-leading tools that proactively support the entire credit lifecycle enabling our clients to find new customers, process new applications, managing customer relationships and collect on delinquent accounts.
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2014, was US$4.8 billion. Experian employs approximately 16,000 people in 39 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com.
Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.
*Based on a scale of 1 to 100 (with 100 being least risky); predicts the likelihood of severe delinquency (more than 91 days past due) within the next 12 months