Chicago, IL, July 25, 2017 (Newswire.com) - PayNet, the premier provider of credit ratings on small businesses, reports that in May 2017 a greater number of New York's small businesses defaulted on existing loans. Of the 18 major industries, defaults rose in 11 and fell in 6 in the state compared to last month.
Following an 11 basis point rise from April, New York's PayNet Small Business Default Index (SBDFI) at 1.91% was 4 basis points greater than the national SBDFI level of 1.87%. Rising default rates over the past year signals heightened financial stress in the state. New York's SBDFI increased 52 basis points over the last year, which was a much higher rise than the 19 basis point increase exhibited by the national SBDFI.
Transportation and Warehousing (2.73%); Accommodation and Food Services (2.64%); and Agriculture, Forestry, Fishing and Hunting (2.46%) registered the worst default rates of all industries in New York. Nationally, Transportation and Warehousing had a default rate of 4.59%, with a difference of +0.99% compared to the prior year, while New York had a variance of +0.64%.
Coming in at 100.1, New York's PayNet Small Business Lending Index (SBLI) exceeded the national SBLI level (98.3) despite declining by 0.2% from last month's state level. Small business borrowers are being cautious and holding off on new investment.
"The increasing default rate over the past year has created a cautious lending environment," states the president of PayNet, William Phelan.