Small Business Defaults in Texas Down in August
Chicago, IL, October 23, 2017 (Newswire.com) - PayNet, the leading provider of small business credit assessments on private companies, announces that in August 2017 the percentage of small businesses defaulting on loans has fallen in Texas. Of the 18 major industries, defaults fell in 14 and increased in only 3 in the state compared to last month.
Despite an 11 basis point decline from July, Texas' PayNet Small Business Default Index (SBDFI) at 2.88% was one of the worst nationally and was still 104 basis points higher than the national SBDFI level of 1.84%. The decline in defaults over the past seven months may signal better business conditions in the state. The national SBDFI rose 8 basis points year-over-year, whereas Texas' SBDFI dipped 7 basis points.
The industries with the highest default rates in Texas were Transportation and Warehousing (6.43%); Mining, Quarrying, and Oil and Gas Extraction (5.58%); and Manufacturing (3.84%). Nationally, Transportation and Warehousing had a default rate of 4.51%, with a difference of +0.48% compared to the prior year, while Texas had a variance of -2.02%.
Texas' PayNet Small Business Lending Index (SBLI) came in at 116.1, outperforming the national SBLI level (99.3) and performing similarly to the previous month's state level. Small business borrowers are cautiously increasing investment.
"Recent increased investment and improved financial health exhibited by Texas' small businesses set the stage for expansion," states the president of PayNet, William Phelan.
Source: www.paynet.com
