Minnesota Small Business Defaults on the Decline in November
Chicago, IL, February 1, 2018 (Newswire.com) - PayNet, the premier provider of credit ratings on small businesses, announces that in November 2017 fewer of Minnesota's small businesses defaulted on existing loans, with default rates in 13 of the 18 major industries falling in the state.
The PayNet Small Business Default Index (SBDFI) for Minnesota was lowest in the country at only 1.03% after a 5 basis point improvement from October. Minnesota's SBDFI was 79 basis points below the national SBDFI level of 1.82%. The national SBDFI dropped 1 basis points over the last year, while Minnesota's SBDFI fell 24 basis points.
The industries with the highest default rates in Minnesota were Transportation and Warehousing (2.79%); Accommodation and Food Services (1.79%); and Finance and Insurance (1.78%). Nationally, Transportation and Warehousing had a default rate of 4.14%, with a difference of --0.08% compared to the prior year, while Minnesota had a variance of -0.76%.
Coming in at 80.5, Minnesota's PayNet Small Business Lending Index (SBLI) ranked 48th in the country, performing on par with the previous month's state level and was 19.9% beneath this month's national SBLI level (100.6).
"More definitive trends are needed to gauge the future economic performance for Minnesota," states William Phelan, president of PayNet.