New York Small Business Defaults Fall in December
Albany, NY, February 28, 2018 (Newswire.com) - PayNet, the premier provider of credit ratings on small businesses, reports that in December 2017 fewer small firms defaulted on loans in New York, with default rates in 12 of the 18 major industries falling in the state.
Following a 5 basis point drop from November, New York's PayNet Small Business Default Index (SBDFI) at 1.77% was 6 basis points under the national SBDFI level of 1.83%. The decrease in defaults over the past three months may signal improving financial health in the state. Over the last year, New York's SBDFI increased 24 basis points, while the national SBDFI has remained flat.
Information (3.90%); Accommodation and Food Services (3.17%); and Transportation and Warehousing (2.83%) exhibited the highest default rates of all industries in New York. Nationally, Information had a default rate of 3.14%, with a difference of +0.91% compared to the prior year, while New York had a variance of +2.06%.
At 101.4, the PayNet Small Business Lending Index (SBLI) for New York increased 0.2% from the previous month's state level and was 1.1% greater than this month's national SBLI level (100.3). Small business borrowers are considering increasing investment.
"Recent increased investment and improved financial health exhibited by New York's small businesses set the stage for expansion with low credit risk," explains William Phelan, president of PayNet.