California Small Business Defaults Fall in November
Chicago, IL, January 23, 2018 (Newswire.com) - PayNet, the leading provider of credit ratings on small businesses, announces that in November 2017 overall defaults decreased among California's small businesses, with default rates in 11 of the 18 major industries falling in the state.
After a 2 basis point dip from October, California's PayNet Small Business Default Index (SBDFI) at 1.60% was 22 basis points below the national SBDFI level of 1.82%. The decline in defaults over the past two months may signal improving financial health in the state. Year-over-year, California's SBDFI rose 10 basis points, whereas the national SBDFI fell 1 basis point.
Transportation and Warehousing (4.22%); Information (3.04%); and Retail Trade (1.96%) exhibited the highest default rates of all industries in California. Nationally, Transportation and Warehousing had a default rate of 4.14%, with a difference of -0.08% compared to the prior year, while California had a variance of +0.88%.
The PayNet Small Business Lending Index (SBLI) for California registered at 97.9, progressing 0.3% from the previous month's state level, but 2.6% beneath the national SBLI level of 100.6 this month.
"Recent investment and improved financial health exhibited by California's small businesses set the stage for expansion with low credit risk," asserts the president of PayNet, William Phelan.