Ohio Small Business Defaults Down in August, Borrowing Up
Chicago, IL, October 23, 2017 (Newswire.com) - Data published by PayNet show that the percentage of Ohio's small businesses defaulting on loans has fallen and the level of borrowing activity improved in August 2017. The data suggest that financial conditions in the state are improving.
The PayNet Small Business Default Index (SBDFI) for Ohio registered 1.38% following a 4 basis point reduction from July. Compared to the national SBDFI level of 1.84%, Ohio's SBDFI was 46 basis points lower. The decline in defaults over the past three months may signal better business conditions in the state. The national SBDFI increased 8 basis points year-over-year, whereas Ohio's SBDFI dropped 8 basis points.
The three industries with the worst default rates in Ohio were Transportation and Warehousing (2.92%); Information (2.02%); and Retail Trade (1.97%). Nationally, Transportation and Warehousing had a default rate of 4.51%, with a difference of +0.48% compared to the prior year, while Ohio had a variance of +0.77%.
The PayNet Small Business Lending Index (SBLI) for Ohio was 105.3, up 1.6% from the previous month's level and 6.0% above this month's national SBLI level (99.3). Small business borrowers are cautiously increasing investment.
"Recent increased investment and improved financial health exhibited by Ohio's small businesses set the stage for expansion with low credit risk," asserts the president of PayNet, William Phelan.
Source: www.paynet.com
