Businesses of All Sizes Showing Signs of Improvement, According to Experian's Latest Business Benchmark Report
COSTA MESA, Calif., Feb. 23 /PRNewswire/ -- Experian®, the leading global information services company, today announced the results of its monthly Business Benchmark Report. In January, the national average number of days that businesses paid beyond the terms of their contracted amounts was 5.77. This number has decreased by 2 percent over the last six months, indicating overall payment behavior may be showing signs of improvement. In fact, businesses of all sizes, in all industries and across all regions have shown improvement in payment behavior. Additionally, the percentage of dollars delinquent remained stable over the six-month review period; the percentage of dollars severely delinquent (91-plus days delinquent) is 5.3 percent, a 2 percent improvement from the previous period.
Other key findings from this month's Business Benchmark Report include:
Risk score:
- The national average commercial risk score for January was 57.14.* Compared with six months ago, this score has improved slightly (by 0.5 percent), indicating some stability in expected payment behavior over the next 12 months.
- Businesses with more than 1,000 employees continue to show the highest rate of projected severe delinquency, with an average credit score of 33.03. However, that score has improved by 7.8 percent in the last six months.
- Utilities companies still have the best (or highest) risk score average of all industries (68.89), and the retail and finance industries have the lowest average at 52.30 and 50.60, respectively.
- The Northeast continues to have the lowest risk score (54.49) but saw a slight improvement compared to six months ago (0.6 percent).
*Based on a 100-point scale
Average days beyond terms (DBT):
- The national average DBT for January was 5.77. This number has decreased by 2 percent, indicating overall payment behavior is beginning to improve. In fact, businesses of all sizes, in all industries and across all regions have shown improvement in payment behavior.
- The communications and construction industries have shown the worst payment performance, coming in at 9.42 and 9.90 DBT, respectively.
- The Northwest and Mountain regions show the worst payment performance, with an average of 7.52 and 8.68 DBT, respectively.
Percentage of dollars delinquent:
- For small businesses (0 to 99 employees), the percentage of dollars delinquent and the percentage of dollars 91-plus days delinquent are improving. Additionally, the percentage of dollars 91-plus days delinquent is improving for large businesses with more than 1,000 employees.
- The national average percentage of dollars delinquent for January was 12.5 percent (remaining stable over the last six months), and the percentage of dollars now 91-plus days delinquent is 5.3 percent (a 2 percent improvement from the previous period). This indicates a continued increase in business activity, generating improved cash flow and ability to meet obligations in a more timely fashion.
- Construction shows signs of improvement but continues to perform poorly (with 22.79 percent of dollars delinquent).
January 2010 Six-month change
Percent Percent
$ $
Risk Average delin- Percent Risk Average delin- Percent
score DBT quent $ 91+ score DBT quent $ 91+
---- ------ ----- ------ ----- ------- ----- -------
National
average 57.14 5.77 12.5% 5.3% 0.5% -2% 0% -2%
--------
Number
of
employees
---------
Nonemployer 58.00 4.97 8.8% 5.0% 0.7% -2.4% -1.4% -1.4%
1 to 4 57.06 6.37 14.1% 7.9% 0.3% -2.2% -1.3% -1.6%
5 to 9 55.04 7.64 14.8% 7.2% 0.2% -2.9% -1.2% -1.8%
10 to 19 54.37 7.81 15.0% 6.3% 0.2% -2.1% -1.3% -1.3%
20 to 49 55.37 7.65 14.3% 4.7% -0.1% -1.4% -0.4% -0.6%
50 to 99 55.86 7.46 15.0% 3.7% -0.2% -0.9% -0.3% -0.1%
100 to 249 53.97 7.77 15.6% 2.9% -0.2% -0.8% 0.5% -2.0%
250 to 499 52.73 8.37 15.6% 2.2% -0.3% -1.2% 4.7% 1.7%
500 to 999 52.42 8.37 16.7% 1.5% -0.3% -1.8% 2.2% 2.8%
1,000 and over 33.03 6.59 20.0% 2.2% 7.8% -2.0% 1.5% -0.6%
Percent Percent
$ $
Risk Average delin- Percent Risk Average delin- Percent
score DBT quent $ 91+ score DBT quent $ 91+
---- ------ ----- ------ ----- ------- ----- -------
Industry
group
--------
Agriculture 62.83 5.29 10.77% 6.38% 0.29% -3% -4% -4%
Forestry 64.78 3.69 23.57% 18.02% 0.20% -2% -9% -16%
Mining 60.43 4.87 7.82% 1.19% -0.03% -1% 10% 17%
Construction 55.46 9.90 22.79% 9.79% 0.30% -2% 0% -1%
Manufacturing 56.28 8.55 16.20% 4.49% 0.13% -2% 1% -5%
Transportation 53.17 7.78 14.93% 6.06% 0.44% -2% 1% -1%
Communications 50.27 9.42 16.47% 7.89% 0.48% -4% 0% -2%
Utilities 68.89 4.89 16.47% 5.22% -0.01% -2% -2% -2%
Wholesale trade 56.48 7.60 12.74% 3.36% 0.25% -2% 0% -2%
Retail trade 52.30 7.84 17.92% 5.68% 0.26% -2% -1% -2%
Finance 50.60 7.89 12.32% 7.97% 0.28% -3% -2% -1%
Insurance 59.25 5.75 8.29% 5.72% 0.27% -4% -2% -3%
Real estate 56.28 6.26 5.31% 3.48% 0.22% -3% -2% -3%
Hospitality 52.31 6.86 5.85% 1.87% 0.17% -1% 6% 5%
Business
services 54.62 8.55 15.38% 7.90% 0.35% -3% -2% -4%
Health
services 60.89 4.68 10.53% 3.80% -0.03% -2% 0% -2%
Legal
services 56.65 6.50 12.88% 8.59% 0.06% -4% -2% -3%
Educational
services 61.37 5.32 10.83% 5.28% 0.09% -4% -1% -3%
Public admin. 60.85 4.89 13.74% 4.48% 0.43% -3% -2% -5%
Percent Percent
$ $
Risk Average delin- Percent Risk Average delin- Percent
score DBT quent $ 91+ score DBT quent $ 91+
---- ------ ----- ------ ----- ------- ----- -------
Region
------
Mid-Atlantic 59.44 5.01 13.2% 4.5% 0.5% -4% -2% -3%
Midwest 58.61 5.94 16.7% 7.7% 0.5% -2% -1% -2%
Mountain 57.21 8.68 8.4% 4.1% 0.5% -1% 6% 5%
New England 60.08 4.53 11.4% 3.8% 0.5% -4% -2% -4%
Northeast 54.49 4.35 14.7% 5.5% 0.6% -4% -2% -3%
Northwest 59.08 7.52 12.9% 5.1% 0.4% -1% 1% -1%
Plains 60.35 5.09 13.4% 4.1% 0.4% -1% -2% -4%
South Central 57.06 5.10 10.6% 3.8% 0.6% -2% 2% -1%
Southeast 55.47 6.40 13.6% 6.1% 0.6% -2% -2% -3%
Southwest 55.67 5.81 9.7% 5.0% 0.4% -3% 1% -2%
To see a visual representation of this data and other information broken down by state in an interactive map of the United States, visit http://www.BusinessCreditFacts.com/map.
About the Business Benchmark Report
Experian's Business Benchmark Report is a monthly look at how businesses are faring in the United States. Designed to monitor the progress of business recovery, the report looks at four key indicators of business health, including commercial risk score, days beyond payment terms, percentage of dollars delinquent and percentage of dollars severely delinquent.
About Experian's Business Information Services
Experian's Business Information Services partners with organizations to establish and strengthen customer relationships, enabling them to mitigate risk and improve profitability. The company's business database provides comprehensive, third-party-verified information on U.S. companies of all sizes, 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 is able to provide market-leading tools that assist clients in processing new applications, managing customer relationships and collecting on delinquent accounts. For more information about Experian's advanced business-to-business products and services, visit http://www.experian.com/b2b or call 1 800 520 1221.
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 65 countries. The company 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, 2009, was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com.
Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners.
Contact: |
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Roslyn Whitehurst |
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Experian Public Relations |
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1 714 830 5578 |
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Dan Meder
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SOURCE Experian
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