Minnesota Small Business Defaults Fall in August
Chicago, IL, October 23, 2017 (Newswire.com) - PayNet, the premier provider of small business credit assessments on private companies, reports that in August 2017 fewer of Minnesota's small businesses defaulted on existing loans, with default rates in 12 of the 18 major industries falling in the state.
Following a 5 basis point fall from July, Minnesota's PayNet Small Business Default Index (SBDFI) at 1.07% was best in the country and was 77 basis points below the national SBDFI level of 1.84%. The decline in defaults over the past two months signals continued improving financial health in the state. The national SBDFI increased 8 basis points year-over-year, whereas Minnesota's SBDFI fell 21 basis points.
The three industries with the worst default rates in Minnesota were Transportation and Warehousing (3.48%); Accommodation and Food Services (1.92%); and Finance and Insurance (1.79%). Nationally, Transportation and Warehousing had a default rate of 4.51%, with a difference of +0.48% compared to the prior year, while Minnesota had a variance of +0.22%.
At 81.5, Minnesota's PayNet Small Business Lending Index (SBLI) declined 0.4% from the previous month's state level and was 17.9% beneath the national SBLI level of 99.3 this month. Small business borrowers are being cautious and holding off on new investment.
"Falling defaults bode well for financial health," asserts William Phelan, president of PayNet.
Source: www.paynet.com
