Michigan Small Business Defaults Down in January, Borrowing Up

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

Categories: Small Business

Tags: Banking, Credit History, Credit Trends, Economy, Local News, Michigan, PayNet, SBDFI, SBDI, SBLI, Small biz, Small Business

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