Small Business Defaults in Michigan on the Rise in March
Chicago, IL, May 10, 2017 (Newswire.com) - PayNet, the premier provider of credit ratings on small businesses, announces that in March 2017 a greater number of small firms defaulted on loans in Michigan, with default rates in 10 of the 18 major industries rising in the state.
PayNet’s Small Business Default Index (SBDFI) for Michigan stood at 1.42% following a 7 basis point rise from February. Michigan's SBDFI was 45 basis points less than the national SBDFI level of 1.87%. The uptick in defaults over the past two months may signal deteriorating financial health in the state. The national SBDFI increased 25 basis points year-over-year, while Michigan's SBDFI rose 5.
The industries with the highest default rate in Michigan were Mining, Quarrying, and Oil and Gas Extraction (4.69%); Transportation and Warehousing (3.83%); and Accommodation and Food Services (2.25%). Nationally, Mining, Quarrying, and Oil and Gas Extraction had a default rate of 4.61%, with a difference of +1.81% compared to the prior year variance of +3.07% in Michigan.
Michigan's PayNet Small Business Lending Index (SBLI) registered at 107.9, exceeding the national SBLI level of 98.3 despite declining by 0.6% from last month's state level. Small business borrowers are being cautious and holding off on new investment.
"Declining investment and deteriorating financial health exhibited by Michigan's small businesses set the stage for a slowing economy," asserts the president of PayNet, William Phelan.