Press Release (ePRNews.com) - Jefferson City, MO - Feb 28, 2018 - Data released by PayNet illustrate that a smaller number of small businesses defaulted on loans in Missouri and the level of borrowing activity fell in December 2017. The data suggest that financial conditions in the state may improve.
The PayNet Small Business Default Index (SBDFI) for Missouri registered at 1.76% after a 9 basis point fall from November. Missouri’s SBDFI was 7 basis points under the national SBDFI level of 1.83%. The decrease in defaults over the past two months may signal better business conditions in the state. The national SBDFI has remained unchanged year-over-year, whereas Missouri’s SBDFI dipped 3 basis points.
Transportation and Warehousing (3.75%); Information (2.52%); and Accommodation and Food Services (2.25%) exhibited the worst default rates of all industries in Missouri. Nationally, Transportation and Warehousing had a default rate of 4.00%, with a difference of –0.20% compared to the prior year, while Missouri had a variance of -0.80%.
Registering at 85.3, the PayNet Small Business Lending Index (SBLI) for Missouri declined 2.1% from last month’s state level and was 15.0% beneath the national SBLI level of 100.3 this month. Small business borrowers are being cautious and holding off on new investment.
“Falling defaults over recent months signal improved financial health,” explains William Phelan, president of PayNet.