Florida Small Business Defaults Up in February

Florida Small Business Credit Trends

In February 2017, small business loan defaults increased in Florida's business community, data released by PayNet show. Of the 18 major industries, 9 worsened and 8 improved in the state.

The PayNet Small Business Default Index (SBDFI) for Florida registered at 2.58% following a 9 basis point rise from January. Florida's SBDFI was 69 basis points higher than the national SBDFI level of 1.89%. Rising default rates over the past year signal heightened financial stress in the state. Over the last year, Florida's SBDFI increased 75 basis points, which was a significantly steeper rise than the 30 basis point increase displayed by the national SBDFI.

Transportation and Warehousing (6.11%); Professional, Scientific, and Technical Services (3.73%); and Finance and Insurance (3.02%) recorded the worst default rates of all industries in Florida. Nationally, Transportation and Warehousing had a default rate of 4.44%, with a difference of +1.31% compared to the prior year variance of +0.90% in Florida.

Florida's PayNet Small Business Lending Index (SBLI) came in at 81.9, down 0.8% from the previous month's state level, but 17.3% lower than the national SBLI level this month. Small business borrowers are being cautious and holding off on new investment.

"The increasing default rate over the past year has created a cautious lending environment," states the president of PayNet, William Phelan. 

Source: PayNet


Categories: Small Business, Financial News, Credit Services, Commercial Banking, Banking, Finance, Insurance

Tags: Economy, Florida Small Business Credit Trends, GDP, PayNet, Small Business Credit Report, Small Business Default Index, Small Business Lending, William Phelan

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