Chicago, IL, February 1, 2018 (Newswire.com) - In November 2017, small business loan defaults decreased in Washington's business community, with default rates in 12 of the 18 major industries falling in the state, according to data announced by PayNet.
Following a 2 basis point fall from October, Washington's PayNet Small Business Default Index (SBDFI) at 1.39% was 43 basis points less 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. Over the last year, Washington's SBDFI increased 12 basis points, whereas the national SBDFI declined 1 basis points.
The industries with the highest default rates in Washington were Transportation and Warehousing (2.57%); Accommodation and Food Services (2.07%); and Manufacturing (2.04%). Nationally, Transportation and Warehousing had a default rate of 4.14%, with a difference of --0.08% compared to the prior year, while Washington had a variance of -0.17%.
At 109.9, the PayNet Small Business Lending Index (SBLI) for Washington surpassed the national SBLI level (100.6) despite declining by 0.1% from the previous month's state level. The Index is basically unchanged from a year ago.
"This all means less risk taking and stabilizing credit quality of small businesses," states William Phelan, president of PayNet.