Delinquent debt on the rise for very small and largest business

Experian’s Business Benchmark Report provides a look at the health of U.S. businesses, focusing on key risk indicators such as commercial risk score,* days beyond terms (DBT) and percentage of delinquent debt. Experian recently redesigned the report to provide improved insights that will assist business-to-business professionals in better identifying potential risk and areas of opportunity.

Findings from the Q2 report showed:

  • The amount of delinquent debt has increased significantly for the largest and smallest businesses. Very large businesses (those with more than 1,000 employees) had the greatest shift in percentage of dollars delinquent, going from 11.6 percent in June 2010 to 18.2 percent in June 2011, and very small businesses (those with one to four employees) had the greatest shift in percentage of dollars considered severely delinquent, going from 9.9 percent in June 2010 to 11.7 percent in June 2011.
  • Conversely, since the beginning of 2010, midsize businesses (with 100 to 249 employees) and very large businesses (with more than 1,000 employees) have seen the greatest improvements in percentage of dollars severely delinquent, decreasing by 17.2 percent and 18.2 percent, respectively.

* Based on a scale of 1 to 100 and predicts the likelihood of severe delinquency (slow 91-plus) within the next 12 months