Illinois Small Business Defaults Down in November; Borrowing Up

CHICAGO, February 1, 2018 (Newswire.com) - The percentage of small firms defaulting on loans has improved in Illinois, and the level of borrowing activity increased in November 2017, data released by PayNet show. The indices suggest that financial conditions in the state may significantly improve.

After an 8 basis point dip from October, Illinois' PayNet Small Business Default Index (SBDFI) at 1.57% was 25 basis points below the national SBDFI level of 1.82%. The decrease in defaults over the past four months may signal better business conditions in the state. The national SBDFI fell 1 basis points over the last year, while Illinois' SBDFI dropped 10 basis points.

Transportation and Warehousing (3.36%); Accommodation and Food Services (2.85%); and Information (1.98%) registered the worst default rates of all industries in Illinois. Nationally, Transportation and Warehousing had a default rate of 4.14%, with a difference of --0.08% compared to the prior year, while Illinois had a variance of -0.89%.

At 114.9, the PayNet Small Business Lending Index (SBLI) for Illinois improved 1.1% from last month's state level and was 14.3% greater than this month's national SBLI level (100.6). Small business borrowers are considering increasing investment.

"Recent increased investment and improved financial health exhibited by Illinois' small businesses set the stage for expansion with low credit risk," asserts William Phelan, president of PayNet.

Source: www.PayNet.com