Missouri Small Business Defaults Up in July
CHICAGO, September 20, 2017 (Newswire.com) - PayNet, the premier provider of small business credit data and analysis for the commercial and industrial lending industry, announces that in July 2017 a greater number of small firms defaulted on loans in Missouri, with default rates in 12 of the 18 major industries rising in the state.
After a 3 basis point rise from June, Missouri's PayNet Small Business Default Index (SBDFI) at 1.99% was 12 basis points above the national SBDFI level of 1.87%. The consistently unfavorable trend in default rates over the past year signals heightened financial stress in the state. Missouri's SBDFI rose 37 basis points year-over-year, which was a significantly sharper rise than the 15 basis point increase displayed by the national SBDFI.
Transportation and Warehousing (4.68%); Professional, Scientific, and Technical Services (3.02%); and Construction (2.78%) registered the worst default rates of all industries in Missouri. Nationally, Transportation and Warehousing had a default rate of 4.57%, with a difference of +0.63% compared to the prior year, while Missouri had a variance of -0.16%.
At 86.1, Missouri's PayNet Small Business Lending Index (SBLI) improved 0.1% from the previous month's state level, but was 12.9% lower than the national SBLI level of 98.9 this month. The Index is basically unchanged from a year ago.
"Expansion has been stagnant over the past year, but conditions may be improving with the slight increase in lending activity despite the continued high default," explains the president of PayNet, William Phelan.