Georgia Small Business Defaults Up in December, Borrowing Down - PayNet
Atlanta, GA, February 15, 2018 (Newswire.com) - Data published by PayNet indicate that a greater number of Georgia small businesses defaulted on loans and the level of borrowing activity fell in December 2017.
PayNet’s Small Business Default Index (SBDFI) for Georgia registered at 2.00% after a 5 basis point rise from November. Georgia's SBDFI was 17 basis points higher than the national SBDFI level of 1.83%. Financial health is stronger than a year ago in the state despite the recent uptick in defaults. Year-over-year, the national SBDFI has remained steady, whereas Georgia's SBDFI declined 16 basis points.
The industries with the worst default rates in Georgia were Information (5.17%); Transportation and Warehousing (4.74%); and Admin & Support and Waste Management & Remediation Services (2.97%). Nationally, Information had a default rate of 3.14%, with a difference of +0.91% compared to the prior year, while Georgia had a variance of +2.33%.
The PayNet Small Business Lending Index (SBLI) for Georgia came in at 95.1, declining 1.7% from the previous month's level and 5.2% beneath this month's national SBLI level (100.3). The Index is basically unchanged from a year ago.
"Increased defaults combined with restrained borrowing signals a more pessimistic view of economic prospects," explains William Phelan, president of PayNet.