Chicago, IL, February 1, 2018 (Newswire.com) - PayNet, the premier provider of small business credit data and analysis for the commercial and industrial lending industry, announces that in November 2017 overall defaults increased within small businesses in Michigan, despite default rates in 12 of the 18 major industries falling in the state.
In spite of a 6 basis point rise from October, Michigan's PayNet Small Business Default Index (SBDFI) at 1.59% was still 23 basis points below the national SBDFI level of 1.82%. The uptick in defaults over the past two months may signal weakening financial health in the state. Over the last year, Michigan's SBDFI rose 29 basis points, whereas the national SBDFI dipped 1 basis points.
The three industries with the highest default rates in Michigan were Accommodation and Food Services (3.27%); Transportation and Warehousing (3.02%); and Agriculture, Forestry, Fishing and Hunting (2.41%). Nationally, Accommodation and Food Services had a default rate of 2.21%, with a difference of +0.37% compared to the prior year, while Michigan had a variance of +1.67%.
The PayNet Small Business Lending Index (SBLI) for Michigan registered at 111.7, surpassing the national SBLI level (100.6) and performing on par with the previous month's state level. Small business borrowers are considering increasing investment.
"The recent increase in risk taking and defaults results from greater investment," asserts William Phelan, president of PayNet.