One method small business owners sometimes use for injecting capital into their business is taking out a small business loan. In some instances, a small business runs into trouble paying back such loans. Recent statistics indicate that, over the past several months, it has been becoming increasingly common for American small businesses to fall into delinquency on loans.

The statistics regard various things related to small business loans for August of this year, including the delinquency rate. According to the data, that month, around 1.63 percent of U.S. small business loans were upwards of 30 days past due. This exceeded the rate from the previous month. It was the fifth month in a row the rate went up. This latest increase put the delinquency rate at the highest level it has been at since Dec. 2012.

Why do you think the small business loan delinquency rate has been trending up in the past few months?

There are a wide range of financial struggles that could be underlying a business going into a delinquency on a loan. Some are ones a business could be likely to bounce back from. Others may be ones that a small business owner feels make it so the business no longer is viable.

So, what is underlying a given small business loan delinquency can impact what approach a small business owner may want to look at for addressing the delinquency, such as whether they may want to consider ending their business through a chapter 7 bankruptcy. Skilled bankruptcy attorneys can look into a small business’ debt situation and advise the owner on what approaches are well-suited for the situation.

Source: Reuters, “U.S. small business borrowing up, as are delinquencies: PayNet,” Ann Saphir, Oct. 4, 2016