Small Business Defaults in Texas Unchanged in July
CHICAGO, September 20, 2017 (Newswire.com) - In July 2017, small business loan defaults were unchanged in Texas' business community, data released by PayNet reveal. Of the 18 major industries, 11 dropped and 6 increased in the state.
Following a 2 basis point dip from June, Texas' PayNet Small Business Default Index (SBDFI) at 2.99% was one of the worst nationally and was 112 basis points above the national SBDFI level of 1.87%. A decrease in defaults over the past seven months may signal improving financial health in the state. Over the last year, the national SBDFI increased 15 basis points, while Texas' SBDFI increased 6 basis points.
The industries with the highest default rates in Texas were Transportation and Warehousing (6.58%); Mining, Quarrying, and Oil and Gas Extraction (6.15%); and Manufacturing (4.03%). Nationally, Transportation and Warehousing had a default rate of 4.57%, with a difference of +0.63% compared to the prior year, while Texas had a variance of -2.01%.
The PayNet Small Business Lending Index (SBLI) for Texas was 115.7, exceeding the national SBLI level (98.9) and performing on par with 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 with low credit risk," states the president of PayNet, William Phelan.
Source: PayNet
