Small Business Defaults in North Carolina on the Rise in December
Charlotte, NC, February 28, 2018 (Newswire.com) - PayNet, the premier provider of small business credit assessments on private companies, reports that in December 2017 more of North Carolina's small businesses defaulted on existing loans, despite default rates in 9 of the 18 major industries falling in the state.
The PayNet Small Business Default Index (SBDFI) for North Carolina registered at 1.76% following a 5 basis point rise from November. Compared to the national SBDFI level of 1.83%, North Carolina's SBDFI was 7 basis points lower. The uptick in defaults over the past three months may signal weakening financial health in the state. Over the last year, North Carolina's SBDFI rose 4 basis points, while the national SBDFI has remained flat.
Transportation and Warehousing (4.37%); Information (3.38%); and Agriculture, Forestry, Fishing and Hunting (2.99%) displayed the worst default rates of all industries in North Carolina. Nationally, Transportation and Warehousing had a default rate of 4.00%, with a difference of --0.20% compared to the prior year, while North Carolina had a variance of -0.17%.
The PayNet Small Business Lending Index (SBLI) for North Carolina was 118.5, exceeding the national SBLI level (100.3) and performing comparably to last month's state level. Small business borrowers are considering increasing investment.
"The recent increase in risk taking and defaults results from greater investment," states William Phelan, president of PayNet.