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Business defaults continue to rise

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An analysis of commercial lending found that severe delinquencies by small and medium-sized U.S. businesses on the loans, leases and lines of credit to finance capital equipment rose again in November, Reuters reported.

Accounts behind 180 days or more, and unlikely to be repaid, rose to 0.91 percent in November from 0.87 percent in October, according to PayNet Inc., which provides risk-management tools to the commercial lending industry.

It was the 22nd consecutive monthly increase in loans so far in arrears that they ultimately may have to be written off by lenders, Reuters said..

Accounts in moderate delinquency, or those behind by 30 days or more, rose in November to 4.33 percent from 4.19 percent in October, PayNet said.

That ended a three-month stretch in which moderate delinquencies had fallen, a trend that fueled hopes prospects were improving for small businesses, Reuters said.

But accounts 90 days or more behind in payment, or in severe delinquency, improved modestly in November, slipping to 1.4 percent from 1.43 percent in October. It was the fourth consecutive improvement in the measurement, according to the report.

PayNet’s report kicks off a week that will be heavy with economic data, including December car sales on Tuesday, December retail sales figures on Thursday and December nonfarm payroll data on Friday.