New Jersey Small Business Defaults on the Decline in January

Chicago, IL, March 13, 2017 (Newswire.com) - In January 2017, fewer small businesses defaulted on loans in New Jersey, with default rates in 11 of the 18 major industries falling in the state, shows data announced by PayNet.

Following an 8 basis point decline from December, New Jersey's 1.54% PayNet Small Business Default Index (SBDFI) was 30 basis points under the national SBDFI level of 1.84%. The decrease in defaults over the past two months may signal improving financial health in the state. The national SBDFI increased 29 basis points over the last year, where as New Jersey's SBDFI fell 16 basis points.

Transportation and Warehousing (3.15%); Agriculture, Forestry, Fishing and Hunting (1.99%); and Professional, Scientific, and Technical Services (1.81%) displayed the highest default rates of all industries in New Jersey. Nationally, Transportation and Warehousing had a default rate of 4.23%, with a difference of +1.40% compared to the prior year variance of +0.66% in New Jersey.

The PayNet Small Business Lending Index (SBLI) for New Jersey came in at 98.9, performing on par with both last month's state level and the national SBLI level this month. Small business borrowers are cautiously increasing investment.

"Recent increased investment and improved financial health exhibited by New Jersey's small businesses set the stage for expansion with low credit risk," suggests the president of PayNet, William Phelan.  

Source: PayNet