California Small Business Defaults Up in February
SACRAMENTO, Calif., April 30, 2018 (Newswire.com) - PayNet, the leading provider of small business credit data and analysis for the commercial and industrial lending industry, announces that in February 2018 the percentage of small businesses defaulting on loans has grown in California. Of the 18 major industries, 9 increased and 9 declined.
Despite a 5 basis point climb from January, California's PayNet Small Business Default Index (SBDFI) at 1.74% was still 8 basis points below the national SBDFI level of 1.82%. Over the last year, California's SBDFI rose 15 basis points, whereas the national SBDFI dipped 4 basis points.
Information (4.80%); Transportation and Warehousing (3.91%); and Accommodation and Food Services (2.08%) exhibited the worst default rates of all industries in California. Nationally, Information had a default rate of 3.19%, with a difference of +0.64% compared to the prior year, while California had a variance of +1.55%.
Coming in at 99.3, California's PayNet Small Business Lending Index (SBLI) rose 0.3% from the previous month's state level, but was 2.5% below the national SBLI level of 101.9 this month. Small business borrowers are considering increasing investment.
"Time will tell how these conditions will affect California's economy going forward," explains the president of PayNet, William Phelan.
Categories: Small Business