Small Business Defaults in Massachusetts on the Rise in December

PayNet, the leading provider of small business credit assessments on private companies, announces that in December 2017 more of Massachusetts' small businesses defaulted on existing loans. Of the 18 major industries, 7 worsened in the state compared to the previous month.

In spite of a 7 basis point increase from November, Massachusetts' PayNet Small Business Default Index (SBDFI) at 1.47% was still 36 basis points under the national SBDFI level of 1.83%.  Over the last year, Massachusetts' SBDFI rose 37 basis points, while the national SBDFI has remained steady.

The three industries with the highest default rates in Massachusetts were Information (3.21%); Public Administration (2.78%); and Manufacturing (2.05%). Nationally, Information had a default rate of 3.14%, with a difference of +0.91% compared to the prior year, while Massachusetts had a variance of +1.72%.

Coming in at 102.9, the PayNet Small Business Lending Index (SBLI) for Massachusetts improved 0.3% from the previous month's state level and was 2.5% higher than the national SBLI level of 100.3 this month. The Index is basically unchanged from a year ago.

"Time will tell how these conditions will affect Massachusetts's economy going forward," explains William Phelan, president of PayNet.  

Source: PayNet


Categories: A&E News, Economy, Business Finance, Commercial Banking, Lending and Borrowing

Tags: Banking, Credit History, Credit Trends, Economy, Local News, Massachusetts, PayNet, SBDFI, SBDI, SBLI, Small biz, Small Business


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