Small Business Defaults in Massachusetts Down in November
Chicago, IL, February 1, 2018 (Newswire.com) - PayNet, the leading provider of small business credit assessments on private companies, announces that in November 2017 overall defaults decreased among Massachusetts' small businesses. Of the 18 major industries, defaults declined in 11 and increased in 5 in the state compared to the prior month.
Following a 2 basis point fall from October, Massachusetts' PayNet Small Business Default Index (SBDFI) at 1.40% was 42 basis points less than the national SBDFI level of 1.82%. The decline in defaults over the past two months may signal better business conditions in the state. Massachusetts' SBDFI increased 30 basis points over the last year, whereas the national SBDFI fell 1 basis points.
Public Administration (3.30%); Information (3.05%); and Manufacturing (2.23%) displayed the highest default rates of all industries in Massachusetts. In addition to having the highest mark this month, Public Administration has also had the greatest rise year-over-year of any industry in Massachusetts with a difference of +2.16%.
Massachusetts' PayNet Small Business Lending Index (SBLI) came in at 103.5, exceeding the national SBLI level (100.6) despite declining by 0.6% from the previous month's state level. Small business borrowers are being cautious and holding off on new investment.
"Falling defaults over recent months signal improved financial health," states William Phelan, president of PayNet.