Small Business Defaults in Kentucky Down in December
Frankfort, KY, February 28, 2018 (Newswire.com) - PayNet, the leading provider of small business credit data and analysis for the commercial and industrial lending industry, announces that in December 2017 the percentage of small businesses defaulting on loans has declined in Kentucky. Of the 18 major industries, defaults improved in 13 and worsened in 5 in the state compared to the prior month.
The PayNet Small Business Default Index (SBDFI) for Kentucky registered at 1.83% after an 8 basis point reduction from November. Kentucky's SBDFI was comparable to the national SBDFI level. The decrease in defaults over the past three months may signal better business conditions in the state. Over the last year, Kentucky's SBDFI rose 3 basis points, while the national SBDFI has remained steady.
The three industries with the highest default rates in Kentucky were Transportation and Warehousing (4.51%); Construction (3.64%); and Information (3.04%). Nationally, Transportation and Warehousing had a default rate of 4.00%, with a difference of --0.20% compared to the prior year, while Kentucky had a variance of -1.20%.
Kentucky's PayNet Small Business Lending Index (SBLI) was 94.3, declining 0.6% from last month's state level, but 6.0% beneath this month's national SBLI level (100.3). The Index is basically unchanged from a year ago.
"With lackluster investment and relatively low defaults, small business financial health remains above average," asserts William Phelan, president of PayNet.