Small Business Defaults in Arizona on the Rise in January
Chicago, IL, March 13, 2017 (Newswire.com) - PayNet, the leading provider of small business credit assessments on private companies, reports that in January 2017 the percentage of Arizona's small businesses defaulting on existing loans has grown. Of the 18 major industries, 8 rose in the state compared to previous month.
PayNet’s Small Business Default Index (SBDFI) for Arizona stood at 1.92% after a 6 basis point rise from December. Arizona's SBDFI was 8 basis points greater than the national SBDFI level of 1.84%. The uptick in defaults over the past three months may signal deteriorating financial health in the state. The national SBDFI rose 29 basis points year-over-year, while Arizona's SBDFI increased 27.
The three industries with the worst default Index in Arizona were Transportation and Warehousing (4.16%); Mining, Quarrying, and Oil and Gas Extraction (3.92%); and Admin & Support and Waste Management & Remediation Services (3.05%). Nationally, Transportation and Warehousing had a default rate of 4.23%, with a difference of +1.40% compared to the prior year variance of +0.39% in Arizona.
At 92.3, Arizona's PayNet Small Business Lending Index (SBLI) declined 0.5% from the previous month's state level and was 7.0% below the national SBLI level this month. However, the index is basically unchanged from a year ago.
"The performance of defaults over the past 3 months matches a sluggish lending environment," states William Phelan, president of PayNet.
Source: PayNet, Inc.
