Press Release (ePRNews.com) - Detroit, MI - Nov 21, 2017 - In September 2017, the percentage of Michigan’s small businesses defaulting on existing loans has not changed, according to data released by PayNet. Of the 18 major industries, 12 fell and 6 rose in the state.
After a similar performance to August, Michigan’s PayNet Small Business Default Index (SBDFI) at 1.54% was 32 basis points less than the national SBDFI level of 1.86%. However, the uptick in defaults over the past two months may signal weakening financial health in the state. Michigan’s SBDFI rose 23 basis points year-over-year, while the national SBDFI increased 7 basis points.
The industries with the worst default rates in Michigan were Accommodation and Food Services (3.59%); Transportation and Warehousing (3.40%); and Mining, Quarrying, and Oil and Gas Extraction (2.14%). With a 2.50% variance, Accommodation and Food Services has also had the largest increase from last year of any industry in Michigan.
The performance of defaults over the past months matches a sluggish lending environment.
Michigan’s PayNet Small Business Lending Index (SBLI) came in at 110.7, outperforming the national SBLI level (99.1) despite dropping by 0.1% from the previous month’s state level. The Index is basically unchanged from a year ago.
“The performance of defaults over the past months matches a sluggish lending environment,” states the president of PayNet, William Phelan. Source :