The Consumer Bankers Association (CBA) released a report this week that examines key credit information for small businesses.
The Q1 2023 Small Business Lending Trends analysis, done in conjunction with the Small Business Financial Exchange (SBFE), had several key findings.
Among them, it said credit delinquencies continued to increase across all account types, noting that dollars at risk due to past due card accounts has risen over 150 basis points since the first quarter of 2022.
It also found that credit utilization declined for the first time following six straight quarters of increases. Further, new cards opened within the last year continue to carry higher balances than previous vintages.
In addition, charge-offs increased for all account types for the second straight quarter following four quarters of increasing delinquency. Broadly, these numbers reflect the impact of a volatile interest rate environment and higher costs of goods and services on small businesses.
However, account growth continues to hold steady, even with external economic pressures persisting. Further, the number of new accounts remains strong, particularly for card products that provide flexible ways for businesses to obtain capital.
The CBA-SBFE Small Business Lending Trends analysis offers quarterly data on delinquencies, credit utilization and credit utilization by account type, and charge-off rates.