Arizona Small Business Defaults Fall in November
Chicago, IL, January 23, 2018 (Newswire.com) - PayNet, the leading provider of small business credit assessments on private companies, reports that in November 2017 the percentage of small businesses defaulting on loans has declined in Arizona. Of the 18 major industries, defaults fell in 12 and increased in 6 in the state compared to the prior month.
The PayNet Small Business Default Index (SBDFI) for Arizona registered at 1.80% following a 2 basis point improvement from October. Arizona's SBDFI was 2 basis points below the national SBDFI level of 1.82%. The decline in defaults over the past two months may signal better business conditions in the state. The national SBDFI declined 1 basis point year-over-year, while Arizona's SBDFI fell 6 basis points.
The three industries with the highest default rates in Arizona were Transportation and Warehousing (4.00%); Admin & Support and Waste Management & Remediation Services (3.36%); and Mining, Quarrying, and Oil and Gas Extraction (2.50%). Nationally, Transportation and Warehousing had a default rate of 4.14%, with a difference of -0.08% compared to the prior year, while Arizona had a variance of -1.16%.
The PayNet Small Business Lending Index (SBLI) for Arizona registered at 91.1, declining 0.3% from last month's state level, but 9.4% lower than this month's national SBLI level (100.6). Small business borrowers are being cautious and holding off on new investment.
"Falling defaults over recent months signal improved financial health," explains the president of PayNet, William Phelan.