Small Business Defaults in Michigan Up in October - PayNet
Chicago, IL, December 18, 2017 (Newswire.com) - In October 2017, a greater number of small businesses defaulted on loans in Michigan, despite default rates in 9 of the 18 major industries falling in the state, data released by PayNet shows.
PayNet’s Small Business Default Index (SBDFI) for Michigan registered at 1.54% following a 4 basis point rise from September. Michigan's SBDFI was 30 basis points less than the national SBDFI level of 1.84%. Michigan's SBDFI rose 24 basis points year-over-year, while the national SBDFI increased 2 basis points.
The industries with the worst default rates in Michigan were Accommodation and Food Services (3.28%); Transportation and Warehousing (3.28%); and Agriculture, Forestry, Fishing and Hunting (2.37%). Nationally, Accommodation and Food Services had a default rate of 2.25%, with a difference of +0.48% compared to the prior year, while Michigan had a variance of +1.89%.
The PayNet Small Business Lending Index (SBLI) for Michigan was 111.5, outperforming the national SBLI level (100.0) and performing comparably to the previous month's state level.
"Time will tell how these conditions will affect Michigan's economy going forward," states William Phelan, president of PayNet.