Small Business Defaults in Missouri on the Decline in January

In January 2018, fewer of Missouri's small businesses defaulted on existing loans, according to data published by PayNet. Of the 18 major industries, 11 improved and 4 worsened in the state.

Following a 4 basis point drop from December, Missouri's PayNet Small Business Default Index (SBDFI) at 1.74% was 8 basis points below the national SBDFI level of 1.82%. The decrease in defaults over the past three months may signal improving financial health in the state. Over the last year, the national SBDFI dropped 2 basis points, while Missouri's SBDFI dropped 9 basis points.

Transportation and Warehousing (3.61%); Information (2.64%); and Wholesale Trade (2.21%) exhibited the highest default rates of all industries in Missouri. Nationally, Transportation and Warehousing had a default rate of 3.91%, with a difference of -0.40% compared to the prior year, while Missouri had a variance of -1.40%.

The PayNet Small Business Lending Index (SBLI) for Missouri was 86.0, performing similarly to the previous month's state level, but 15.4% below the national SBLI level of 101.7 this month.

"More definitive trends are needed to gauge the future economic performance for Missouri," asserts William Phelan, president of PayNet.

Source: PayNet

Categories: Economy

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

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