Louisiana Small Business Defaults Down in September, Borrowing Up

​Data published by PayNet illustrate that the percentage of small businesses defaulting on existing loans has fallen in Louisiana and the level of borrowing activity improved in September 2017. The indices suggest that financial conditions in the state may improve.

In spite of a 5 basis point drop from August, Louisiana's PayNet Small Business Default Index (SBDFI) at 2.85% was one of the worst in the country and was 99 basis points greater than the national SBDFI level of 1.86%. However, the decline in defaults over the past five months may signal improving financial health in the state. Year-over-year, the national SBDFI increased 7 basis points, whereas Louisiana's SBDFI fell 22 basis points.

More definitive trends are needed to gauge the future economic performance for Louisiana.

William Phelan, President

Transportation and Warehousing (6.59%); Mining, Quarrying, and Oil and Gas Extraction (5.40%); and Construction (4.51%) recorded the highest default rates of all industries in Louisiana. Nationally, Transportation and Warehousing had a default rate of 4.43%, with a difference of +0.35% compared to the prior year, while Louisiana had a variance of +0.52%.

Registering at 115.1, the PayNet Small Business Lending Index (SBLI) for Louisiana increased 1.6% from the previous month's state level and was 16.1% above the national SBLI level of 99.1 this month.

"More definitive trends are needed to gauge the future economic performance for Louisiana," explains William Phelan, president of PayNet. 

Source: www.paynet.com