Minnesota Small Business Defaults on the Rise in January

Saint Paul, MN, March 15, 2018 (Newswire.com) - PayNet, the premier provider of small business credit data and analysis for the commercial and industrial lending industry, announces that in January 2018 overall defaults increased among Minnesota's small businesses, despite default rates in 9 of the 18 major industries falling in the state.

Despite a 2 basis point rise from December, Minnesota's PayNet Small Business Default Index (SBDFI) at 1.04% was best nationally and was 78 basis points below the national SBDFI level of 1.82%. Financial health is stronger than a year ago in the state despite the recent uptick in defaults. The national SBDFI dropped 2 basis points year-over-year, while Minnesota's SBDFI dropped 9 basis points.

Transportation and Warehousing (2.27%); Public Administration (1.90%); and Wholesale Trade (1.66%) exhibited the worst default rates of all industries in Minnesota. Nationally, Transportation and Warehousing had a default rate of 3.91%, with a difference of -0.40% compared to the prior year, while Minnesota had a variance of -1.46%.

Minnesota ranked 49th nationally with the PayNet Small Business Lending Index (SBLI) at 81.4, performing comparably to the previous month's state level and 19.9% below the national SBLI level of 101.7 this month.

"More definitive trends are needed to gauge the future economic performance for Minnesota," explains the president of PayNet, William Phelan.  

Source: PayNet, Inc.