Business debt in the U.S. has surged over the past five years—fueled by pandemic disruptions, stimulus borrowing, and a volatile interest rate environment. As refinancing costs rise and payment behavior worsens, companies face mounting financial pressure across sectors. This roundup captures the most important statistics and trends shaping the commercial debt landscape in 2025.

Key Commercial Debt Statistics (2020–2025)

1. $21.55 trillion in non-financial business debt by Q4 2024 (up 27% since 2019)
2. $1.8 trillion in commercial real estate (CRE) loans set to mature by 2026
3. 23,107 business bankruptcies filed in 2024, up from 18,926 in 2023
4. 55% of B2B invoices were overdue in 2023
5. 9% of credit sales in 2023 became bad debt
6. $1.655 trillion in outstanding auto loan debt as of 2024 numbers
7. 11% delinquency rate on office-property loans as of mid-2024
8. $3,800: average household loss due to tariff-driven inflation
9. 1.28% delinquency rate on commercial and industrial (C&I) loans in Q4 2024
10. 1.0%: Annualized growth rate of U.S. nonfinancial business debt in Q4 2024, marking a significant slowdown compared to earlier quarters. ​

Trends in Business Borrowing and Defaults

A Debt Surge Followed by a Cooldown

Business debt exploded from $16.9T in 2019 to $21.55T in 2024—driven by pandemic borrowing, low interest rates, and market expansion. Growth has since moderated as companies face tighter credit and higher rates.

Bankruptcy Filings Climb Back

After record lows in 2020–21, business bankruptcy filings jumped 33.5% by late 2024. Large firms led this trend: 694 corporate bankruptcies were recorded in 2024—the highest in 14 years.

CRE Loans: The Next Time Bomb

Nearly $1 trillion in CRE loans are due in 2025 alone. With refinancing costs 75–100% higher than original terms, distressed sales and defaults are likely to accelerate.

Credit Risk and Delinquency Worsen

Overdue Invoices Widespread

In 2023, 55% of U.S. B2B sales were paid late, with 81% of companies seeing worsening delays. Average Days Sales Outstanding rose to 49 days—tying up working capital.

Bad Debt Mounts

About 9% of all credit-based B2B sales ended in uncollectible losses in 2023. Aging debt dramatically reduces recoverability—only 10% of invoices over 12 months old are likely to be collected.

Delinquencies Rising Across Loan Types

• C&I loan delinquencies rose from 0.77% in Q3 2023 to 1.28% by Q4 2024
• CRE loan delinquencies hit a 10-year high at 1.57%
  Office loan delinquency alone reached ~11%

The Collections Industry and Legal Enforcement

B2B Recovery Rates Are Low

Debt collectors recover just 20 cents per dollar on average. For older debt or legal cases, actual creditor recovery drops to 10% or less.

Legal Tools Growing—but Limited

More than 70% of B2B debt lawsuits result in default judgments, but only half of those are successfully enforced. Creditors increasingly rely on court action for high-balance debts, but delays and debtor insolvency remain obstacles.

Technology and Alternative Lending

AI Is Reshaping Access to Credit

Fintech lenders are using AI to speed underwriting and reduce bias. This has increased financing access for small businesses with unconventional credit profiles.

Nonbank Lenders Fill the Gap

24% of middle-market companies and 16% of small businesses now prefer nonbank lenders. Platforms like Mintifi and NAV-based lending are gaining traction.

Sector-Specific Struggles

• Consumer & Industrial: 28% of 2024 corporate bankruptcies came from these sectors
• Healthcare: 65 large bankruptcies in 2024, third-highest sector
• Construction & CRE: Facing high debt loads, thin margins, and project delays
• Tech & Telecom: Debt-fueled growth has turned into retrenchment and defaults

What’s Driving the Credit Crunch?

• Interest Rates: Business loans now carry double the interest burden of 2021, choking refinancing options
• Inflation: Peaked at 9.1% in 2022, causing cascading cash flow issues and slow payments
• Credit Tightening: Banks have pulled back—Federal Reserve surveys show the tightest lending standards since 2009
• Federal Debt: At $36.56 trillion, public debt pressures interest rates upward, impacting private borrowing costs

Outlook for 2025: A Return to Normal (But Higher) Defaults

The artificially low bankruptcy and default rates of 2020–21 have ended. Analysts expect speculative-grade corporate defaults to approach 5% in 2025. Small businesses—especially those with expiring pandemic-era loans—face rising failure risk as capital tightens and payment delays worsen.

Final Thoughts

The data paints a clear picture—while stimulus and low rates postponed distress, the U.S. is now facing a commercial debt reckoning. Creditors, lenders, and businesses alike must adapt to a more cautious, cash-constrained era. As interest costs climb and payment discipline erodes, early action on collections and credit terms will define financial survival in 2025 and beyond.

Sources: 

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