Illinois Small Business Defaults Up in March
Chicago, IL, May 10, 2017 (Newswire.com) - PayNet, the leading provider of small business credit data and analysis for the commercial and industrial lending industry, reports that in March 2017 overall defaults increased within small businesses in Illinois, with default rates in 10 of the 18 major industries rising in the state.
The PayNet Small Business Default Index (SBDFI) for Illinois registered at 1.74% after a 3 basis point rise from February. Compared to the national SBDFI level of 1.87%, Illinois' SBDFI was 13 basis points lower. The uptick in defaults over the past two months may signal deteriorating financial health in the state. Year-over-year, Illinois' SBDFI rose 30 basis points, which was a higher upturn than the 25 basis point increase displayed by the national SBDFI.
The industries with the highest default rate in Illinois were Transportation and Warehousing (4.27%); Manufacturing (3.51%); and Accommodation and Food Services (2.47%). Nationally, Transportation and Warehousing had a default rate of 4.49%, with a difference of +1.24% compared to the prior year variance of +1.55% in Illinois.
The PayNet Small Business Lending Index (SBLI) for Illinois was 111.8, surpassing the national SBLI level and performing similarly to the previous month's state level. Year-over-year, business investment deteriorated 5.0%.
"Despite the performance of defaults over recent months, lending appears to be turning up," says the president of PayNet, William Phelan.