California Small Business Defaults Up in December
Sacramento, CA, February 15, 2018 (Newswire.com) - PayNet, the premier provider of small business credit assessments on private companies, reports that in December 2017 a greater number of California's small businesses defaulted on existing loans. Of the 18 major industries, defaults worsened in 10 and improved in 8 in the state compared to last month.
In spite of a 7 basis point rise from November, California's PayNet Small Business Default Index (SBDFI) at 1.68% was still 15 basis points below the national SBDFI level of 1.83%. California's SBDFI increased 19 basis points year-over-year, while the national SBDFI has remained steady.
Transportation and Warehousing (4.09%); Information (3.71%); and Accommodation and Food Services (2.08%) displayed the highest default rates of all industries in California. Nationally, Transportation and Warehousing had a default rate of 4.00%, with a difference of -0.20% compared to the prior year, while California had a variance of +0.81%.
California's PayNet Small Business Lending Index (SBLI) came in at 97.4, declining 0.4% from the previous month's state level, but 2.9% beneath this month's national SBLI level (100.3).
"More definitive trends are needed to gauge the future economic performance for California," states William Phelan, president of PayNet.