Missouri Small Business Defaults on the Decline in September

Jefferson City, MO, November 21, 2017 (Newswire.com) - ​PayNet, the leading provider of credit ratings on small businesses, reports that in September 2017 overall defaults decreased within small businesses in Missouri. Of the 18 major industries, defaults dropped in 10 and increased in 8 in the state compared to last month.

Despite a 2 basis point drop from August, Missouri's PayNet Small Business Default Index (SBDFI) at 1.91% was still 5 basis points above the national SBDFI level of 1.86%. Financial health is weaker than a year ago in the state despite the recent downturn in defaults. Missouri's SBDFI rose 19 basis points over the last year, which was a much sharper climb than the 7 basis point increase displayed by the national SBDFI.

Lower default rates combined with steady borrowing signals a more positive view of economic prospects.

William Phelan, President

The industries with the worst default rates in Missouri were Transportation and Warehousing (4.36%); Information (2.86%); and Professional, Scientific, and Technical Services (2.72%). Nationally, Transportation and Warehousing had a default rate of 4.43%, with a difference of +0.35% compared to the prior year, while Missouri had a variance of -1.18%.

Registering at 86.3, Missouri's PayNet Small Business Lending Index (SBLI) increased 0.1% from the previous month's state level, but was 12.9% below the national SBLI level of 99.1 this month. The Index is basically unchanged from a year ago.

"Lower default rates combined with steady borrowing signals a more positive view of economic prospects," states William Phelan, president of PayNet.

Source: www.paynet.com