Massachusetts Small Business Defaults Unchanged in October - PayNet
Chicago, IL, December 18, 2017 (Newswire.com) - PayNet, the leading provider of small business credit data and analysis for the commercial and industrial lending industry, announces that in October 2017 overall defaults have not changed among Massachusetts' small businesses. Of the 18 major industries, defaults dropped in 10 and increased in 8 in the state compared to the previous month.
PayNet’s Small Business Default Index (SBDFI) for Massachusetts registered at 1.45% and was unchanged from September. Compared to the national SBDFI level of 1.84%, Massachusetts' SBDFI was 39 basis points less. The consistently unfavorable trend in default rates over the past year signals heightened financial stress in the state. Massachusetts' SBDFI increased 39 basis points year-over-year, while the national SBDFI increased 2 basis points.
The industries with the highest default rates in Massachusetts were Information (2.51%); Manufacturing (2.46%); and Transportation and Warehousing (2.15%). Nationally, Information had a default rate of 3.00%, with a difference of +0.73% compared to the prior year, while Massachusetts had a variance of +1.04%.
Coming in at 104.4, Massachusetts' PayNet Small Business Lending Index (SBLI) improved 0.4% from the previous month's state level and was 4.4% greater than the national SBLI level of 100.0 this month.
"Higher defaults often accompany more investment, leading to more GDP, more jobs, and more tax-paying," states William Phelan, president of PayNet.