Chicago, IL, February 1, 2018 (Newswire.com) - PayNet, the leading provider of credit ratings on small businesses, reports that in November 2017 overall defaults decreased within small businesses in Louisiana. Of the 18 major industries, defaults dropped in 16 and rose in only 2 in the state compared to the previous month.
Despite a 10 basis point drop from October, Louisiana's PayNet Small Business Default Index (SBDFI) at 2.64% was one of the worst nationally and was still 82 basis points above the national SBDFI level of 1.82%. Declining default rates over the past year signals improved financial health in the state. Over the last year, the national SBDFI fell 1 basis points, while Louisiana's SBDFI dropped 44 basis points.
The three industries with the highest default rates in Louisiana were Transportation and Warehousing (5.91%); Mining, Quarrying, and Oil and Gas Extraction (4.73%); and Construction (4.58%). Nationally, Transportation and Warehousing had a default rate of 4.14%, with a difference of --0.08% compared to the prior year, while Louisiana had a variance of -0.41%.
The PayNet Small Business Lending Index (SBLI) for Louisiana was 116.9, surpassing the national SBLI level (100.6) and performing similarly to the previous month's state level. Small business borrowers are considering increasing investment.