Minnesota Small Business Defaults Fall in May
Chicago, IL, July 24, 2017 (Newswire.com) - PayNet, the leading provider of small business credit assessments on private companies, reports that in May 2017 overall defaults decreased within small businesses in Minnesota. Of the 18 major industries, defaults improved in 12 and worsened in 4 in the state compared to last month.
PayNet’s Small Business Default Index (SBDFI) for Minnesota was best in the country at only 1.06% following a 6 basis point reduction from April. Compared to the national SBDFI level of 1.87%, Minnesota's SBDFI was 81 basis points less. The decrease in defaults over the past three months may signal improving financial health in the state. The national SBDFI increased 19 basis points over the last year, whereas Minnesota's SBDFI dipped 12 basis points.
The industries with the worst default rate in Minnesota were Transportation and Warehousing (3.73%); Finance and Insurance (1.93%); and Accommodation and Food Services (1.92%). Nationally, Transportation and Warehousing had a default rate of 4.59%, with a difference of +0.99% compared to the prior year, while Minnesota had a variance of +1.63%.
Coming in at 82.9, the PayNet Small Business Lending Index (SBLI) for Minnesota fell 0.1% from last month's state level and was 15.7% below this month's national SBLI level (98.3). Small business borrowers are being cautious and holding off on new investment.
"Falling defaults over recent months signal improved financial health," asserts William Phelan, president of PayNet.
Source: www.paynet.com
