Small Business Defaults in Georgia Down in August
Chicago, IL, October 23, 2017 (Newswire.com) - In August 2017, the percentage of Georgia's small businesses defaulting on existing loans has improved, according to data announced by PayNet. Of the 18 major industries, 12 improved and 6 worsened in the state.
PayNet’s Small Business Default Index (SBDFI) for Georgia registered 1.92% following a 3 basis point fall from July. Compared to the national SBDFI level of 1.84%, Georgia's SBDFI was 8 basis points greater. The decline in defaults over the past six months may signal improving financial health in the state. Over the last year, the national SBDFI rose 8 basis points, whereas Georgia's SBDFI dropped 18 basis points.
Information (5.14%); Transportation and Warehousing (5.13%); and Agriculture, Forestry, Fishing and Hunting (3.08%) exhibited the worst default rates of all industries in Georgia. Nationally, Information had a default rate of 2.88%, with a difference of +0.59% compared to the prior year, while Georgia had a variance of +2.57%.
The PayNet Small Business Lending Index (SBLI) for Georgia came in at 94.5, down 0.6% from last month's state level, and 4.8% below the national SBLI level of 99.3 this month. Small business borrowers are being cautious and holding off on new investment.
"Falling defaults over recent months bode well for financial health," asserts the president of PayNet, William Phelan.