Small Business Defaults in Washington Up in August
Chicago, IL, October 23, 2017 (Newswire.com) - In August 2017, the percentage of Washington's small businesses defaulting on existing loans has increased, despite default rates in 10 of the 18 major industries falling in the state, according to data published by PayNet.
In spite of a 3 basis point climb from July, Washington's PayNet Small Business Default Index (SBDFI) at 1.41% was still 43 basis points less than the national SBDFI level of 1.84%. Over the last year, Washington's SBDFI increased 17 basis points, while the national SBDFI rose 8 basis points.
The industries with the worst default rates in Washington were Transportation and Warehousing (2.68%); Accommodation and Food Services (2.51%); and Manufacturing (1.91%). Nationally, Transportation and Warehousing had a default rate of 4.51%, with a difference of +0.48% compared to the prior year, while Washington had a variance of +0.16%.
Washington's PayNet Small Business Lending Index (SBLI) registered at 111.0, outperforming the national SBLI level (99.3) and performing similarly to last month's state level. Small business borrowers are cautiously increasing investment.
"Time will tell how these conditions will affect Washington's economy going forward," explains William Phelan, president of PayNet.
Source: www.paynet.com
