Experian®, the leading global information services company, today announced findings from its recently redesignedBusiness Benchmark Report. Findings from the Q2 report showed that 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 inJune 2010to 18.2 percent inJune 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 inJune 2010to 11.7 percent inJune 2011.

Conversely, the Q2 report indicated that businesses with 100 to 249 employees have shown the greatest improvement in percentage of dollars delinquent and severely delinquent, reducing their debt by as much as 7.3 percent and 35.8 percent, respectively, year over year. The trend for Q2 mirrors this observation, showing that businesses with 100 to 249 employees have significantly decreased their delinquent and severely delinquent dollars by 5.4 percent and 20.2 percent, respectively.

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.

Other findings from the Q2 Business Benchmark Report include the following:

Risk score

• The average commercial risk score forJune 2011was 57.4, worsening by 1.4 percent when compared withJune 2010. However, the Q2 trend showed that this metric has remained relatively flat in recent months.
• Very large businesses have seen the greatest deterioration in commercial risk scores in a year-over-year comparison, decreasing by 13.2 percent. However, the Q2 trend showed a slight but steady improvement in commercial credit risk scores for very large businesses, rising by 2.2 percent.
• InJune 2011, the commercial risk scores for businesses in the Mid-Atlantic and Northeast regions remained steady when compared with the previous year. All other regions showed deterioration in scores, with the Southeast region showing the greatest decrease in average score, worsening by 4.3 percent year over year.

DBT

• U.S. businesses paid their bills an average of 6.8 days beyond contracted terms inJune 2011, a 12.5 percent increase when compared withJune 2010. However, according to the Q2 trend, businesses have shown relative stability, decreasing by only 0.6 percent.
• All business sectors have shown an increase in slow payment in a year-over-year comparison. The largest increase in slow payment came from the Construction industry (17 percent) and Insurance industry (15.7 percent) when compared withJune 2010. However, the Q2 trend showed that the Utilities, Insurance, Legal Services and Health Services sectors have improved their DBT by as much as 2.9 percent.
• InJune 2011, all regions showed deterioration in DBT, with Midwest businesses showing the greatest increase (23.9 percent) in slow payment compared with the previous year. However, all regions showed a relative stabilization in DBT in the Q2 trend, decreasing their slow payment by as much as 1.4 percent.

Percentage of dollars delinquent

• The national average percentage of dollars delinquent and percentage of dollars considered severely delinquent increased by 7.1 percent and 3.7 percent, respectively, when compared withJune 2010.
• The Insurance sector showed the greatest decrease in percentage of dollars delinquent and severely delinquent, reducing its debt by 38.9 percent and 45.5 percent, respectively, year over year. The trend for Q2 2011 showed that Insurance continued to reduce its delinquent debt (by 7.5 percent) and severely delinquent debt (by 8.5 percent).
• As ofJune 2011, Midwest, Southeast and Mid-Atlantic businesses have shown the greatest increase in percentage of dollars delinquent, increasing by as much as 15.9 percent when compared with the previous year. Businesses in the Northwest and the Midwest have shown the greatest increase in percentage of dollars considered severely delinquent, increasing by 35.6 percent and 18.2 percent, respectively, in the same time period. Conversely, businesses in the Southwest showed the greatest improvement in delinquent and severely delinquent dollars, reducing their debt by 16.9 percent and 24.9 percent, respectively, year over year.
• The trend for Q2 2011 showed that the Mountain region has increased its delinquent debt (by 9.7 percent) and percentage of dollars severely delinquent (by 21.3 percent). Additionally, the Northwest has continued to increase its percentage of delinquent and severely delinquent debt, rising by 4.7 percent and 22.9 percent, respectively.