Kansas Small Business Defaults Down in January, Borrowing Up: PayNet
Topeka, KS, March 22, 2018 (Newswire.com) - Fewer of Kansas' small businesses defaulted on existing loans and the level of borrowing activity grew in January 2018, data released by PayNet show.
The PayNet Small Business Default Index (SBDFI) for Kansas registered at 2.10% following a 10 basis point reduction from December. Kansas' SBDFI was 28 basis points greater than the national SBDFI level of 1.82%. Financial health is weaker than a year ago in the state despite the recent downturn in defaults. Kansas' SBDFI rose 16 basis points over the last year, whereas the national SBDFI fell 2 basis points.
The three industries with the highest default rates in Kansas were Construction (3.37%); Transportation and Warehousing (3.32%); and Information (3.17%). Nationally, Construction had a default rate of 2.07%, with a difference of +0.02% compared to the prior year, while Kansas had a variance of +0.10%.
Registering at 102.2, Kansas' PayNet Small Business Lending Index (SBLI) rose 1.7% from last month's state level and performed similarly to the national SBLI level of 101.7 this month.
"Lower default rates combined with increased borrowing signals a more positive view of economic prospects," asserts William Phelan, president of PayNet.
Source: PayNet, Inc.
