You are now being redirected to Orchard Platform Markets, LLC.
If you aren’t redirected in a few seconds click here.
You are now being redirected to Orchard Indexes.
If you aren’t redirected in a few seconds click here.

Subscribe to our Newsletter


  • Investor Portal

  • Originator Database

  • Manager Database

If you forgot your login email, please contact your Orchard Account Manager or

Small Business Lending Industry Report – March 2018


Orchard’s Small Business Lending report provides a data-rich glimpse into trends among non-bank small business lenders. The report covers lenders offering ’fixed payback’ loans such as merchant cash advances as well as small business term loans. Orchard receives regular data feeds from our originator data partners, which provide detailed information on loan origination characteristics and the ongoing performance of their loan portfolios. We standardize, aggregate, and analyze this data across multiple dimensions to present valuable insights into origination volume, performance, and other characteristics. We also provide commentary and key insights on broader events in the industry.

Key Insights:

  • The Thomson Reuters/Paynet Small Business Lending Index measures the volume of new loans made to Small Businesses. The index is seasonally-adjusted. Since September 2017, origination volume has slowly increased each month to an overall growth of 12%. For the Thomson Reuters/Paynet Small Business Delinquency Index (31-90 DPD), delinquencies have upticked 15 bps since early 2016.


  • The distribution graphs display the frequency of originated loans’ APRs over different origination characteristics since 2010. The distribution charts are separated by SME loan products Fixed Payback and Fixed Term. The 0-23 Months in Business Cohort for Fixed Payback experienced a higher APR distribution compared to other cohorts while the 0-23 Months in Business cohort for Fixed Term experienced an inverse relationship with a lower APR distribution compared to other cohorts.


  • Charged-off Rate and annualized Yield Rate by Month on Book charts show the seasoning effect on SME loans. Fixed payback charged-off rate spikes at a rapid incline after a loan age of 5 months. The fixed term charged-off rate does not exceed 1.36%.


  • For the Delinquent Fixed Term SME Loans as Percentage of Total Outstanding Balances chart, the percentage of delinquent loans increased from 4.4% to 4.7% in February 2018.


  • Monthly Charged-Off and Recovery Rate by Month charts display the seasonal effects on SME loans. Months December and March’s Charged-Off rates are significantly higher than other months at 1.3-1.4%. For the Recovery Rate by Month chart, the industry experiences a high spike of recoveries for the month of September at 10.6%.


  • For the Monthly Charged-Off Rate by Months in Business chart, there is a significantly lower Charged-off rate, less than .4%, for businesses less than 24 months in business.


  • The North American Industry Classification System (NAICS) data displays different loan performance and origination characteristics within different industries. Construction, Wholesale Trade, and Transportation and Warehousing experienced higher Charged-off Rates (3.5%+) compared to other industries. In the Recovery Chart, Finance/Insurance sector had the highest recovery rate above 20%. Construction and Transportation and Warehousing have some the highest APRs for both Fixed Payback and Fixed Term.


  • Business Revenue and APR by Months in Business chart exhibits a lower APR rate at 8.49% for 0 to 23 months in business than businesses that have been in business longer and have higher reported revenue. The APR for months in business from 24 to 239 months are averaging 13.58%.


  • States IA, LA, and WV (5.5%, 4.3%, 4.0% respectively) experienced higher than normal year-to-date gross charged-off rates compared to national levels. For the 12 Month Weighted Average APR chart (Fixed Payback Only), NM, ID, KS, OK, IN had the highest reported APRs. NY’s Weighted Average APR rate of 51.67% is 300 bps lower than the national average for Fixed Payback loans.


Download The Full Report