Press Release (ePRNews.com) - Chicago, IL - Feb 01, 2018 - Fewer small businesses defaulted on existing loans in Texas and the level of borrowing activity grew in November 2017, data reported by PayNet show. The data suggest that financial conditions in the state may significantly improve.
In spite of a 9 basis point fall from October, Texas’ PayNet Small Business Default Index (SBDFI) at 2.78% was the worst nationally and was still 96 basis points higher than the national SBDFI level of 1.82%. The decrease in defaults over the past two months may signal improving financial health in the state. The national SBDFI fell 1 basis points over the last year, while Texas’ SBDFI dropped 46 basis points.
Transportation and Warehousing (5.46%); Mining, Quarrying, and Oil and Gas Extraction (4.98%); and Manufacturing (3.35%) recorded the highest default rates of all industries in Texas. Nationally, Transportation and Warehousing had a default rate of 4.14%, with a difference of –0.08% compared to the prior year, while Texas had a variance of -2.94%.
The PayNet Small Business Lending Index (SBLI) for Texas registered at 121.7, progressing 1.8% from last month’s level and 21.0% higher than the national SBLI level of 100.6 this month. Small business borrowers are considering increasing investment.
“Recent increased investment and improved financial health exhibited by Texas’ small businesses set the stage for expansion with low credit risk,” explains the president of PayNet, William Phelan.