PayNet releases AbsolutePD, for Canadian commercial lenders to provide forward looking probabilities of default on each borrower where financial statements or tax returns are unavailable.

This new tool assists Canadian commercial lenders to manage the risk of each borrower and their loan portfolios by province, industry, borrower segment or risk grade through AbsolutePD Portfolio Manager.

Due to the after effects of the recession, many lenders maintain high levels of loss reserves in their loan provisions. Excess reserves raise the cost of capital for lenders at a time when credit risk is low.

“PayNet AbsolutePD is now available to put managers in charge of their small business credit portfolios,” states William Phelan, president of PayNet. “AbsolutePD creates the probability of default for private companies by combining extensive loan payment information from our data consortium with macroeconomic factors such as Gross Domestic Product.”