Massachusetts Small Business Defaults Up in August
Chicago, IL, October 23, 2017 (Newswire.com) - In August 2017, small business loan defaults increased in Massachusetts, data published by PayNet show. Of the 18 major industries, 7 rose in the state.
PayNet’s Small Business Default Index (SBDFI) for Massachusetts registered 1.47% following a 6 basis point increase from July. Compared to the national SBDFI level of 1.84%, Massachusetts' SBDFI was 37 basis points lower. Higher default rates over the past year signals heightened financial stress in the state. Massachusetts' SBDFI increased 37 basis points year-over-year, which was a much sharper rise than the 8 basis point increase exhibited by the national SBDFI.
Manufacturing (2.59%); Public Administration (2.49%); and Information (2.36%) recorded the worst default rates of all industries in Massachusetts. Nationally, Manufacturing had a default rate of 1.89%, with a difference of +0.12% compared to the prior year, while Massachusetts had a variance of +1.22%.
Massachusetts' PayNet Small Business Lending Index (SBLI) registered at 103.5, exceeding the national SBLI level (99.3) despite declining by 0.9% from the previous month's state level. Small business borrowers are being cautious and holding off on new investment.
"The increasing default rate over the past year has created a cautious lending environment," asserts William Phelan, president of PayNet.
Source: www.paynet.com
