Louisiana Small Business Defaults Stable in April
Chicago, IL, June 14, 2017 (Newswire.com) - PayNet, the leading provider of small business credit assessments on private companies, reports that in April 2017, overall defaults have not changed among Louisiana's small businesses. Of the 18 major industries, 12 dropped and 6 rose.
Following a similar performance to March, Louisiana's PayNet Small Business Default Index (SBDFI) at 3.10% ranked 50th nationally and was 120 basis points greater than the national SBDFI level of 1.90%. However, the uptick in defaults over the past three months may signal deteriorating financial health in the state. Louisiana's SBDFI increased 54 basis points over the last year, while the national SBDFI increased 26 basis points.
Mining, Quarrying, and Oil and Gas Extraction (7.49%); Transportation and Warehousing (6.11%); and Agriculture, Forestry, Fishing and Hunting (4.25%) displayed the worst default rates of all industries in Louisiana. Nationally, Mining, Quarrying, and Oil and Gas Extraction had a default rate of 4.46%, with a change of +1.51% compared to the prior year versus a variance of +3.72% in Louisiana.
At 111.5, Louisiana's PayNet Small Business Lending Index (SBLI) improved 0.2% from last month's level and was 13.5% above the national SBLI level this month. Year-over-year, business investment deteriorated 3.0% in the state.
"Despite the performance of defaults over recent months, lending appears to be turning up," states William Phelan, president of PayNet.
For more information on PayNet, visit www.paynet.com.
Source: PayNet
