Michigan Small Business Defaults Down in January, Borrowing Up
Detroit, MI, March 15, 2018 (Newswire.com) - Data released by PayNet show that the percentage of small businesses defaulting on existing loans has fallen in Michigan and the level of borrowing activity grew in January 2018.
After a 6 basis point drop from December, Michigan's PayNet Small Business Default Index (SBDFI) at 1.57% was 25 basis points below the national SBDFI level of 1.82%. Financial health is weaker than a year ago in the state despite the recent downturn in defaults. Over the last year, Michigan's SBDFI increased 24 basis points, whereas the national SBDFI dropped 2 basis points.
The three industries with the highest default rates in Michigan were Accommodation and Food Services (2.97%); Transportation and Warehousing (2.62%); and Agriculture, Forestry, Fishing and Hunting (2.10%). Nationally, Accommodation and Food Services had a default rate of 2.24%, with a difference of +0.28% compared to the prior year, while Michigan had a variance of +0.86%.
At 114.5, Michigan's PayNet Small Business Lending Index (SBLI) rose 1.8% from the previous month's state level and was 12.6% above the national SBLI level of 101.7 this month.
"Small business growth bodes well for future GDP," explains William Phelan, president of PayNet.
Source: PayNet
