Press Release (ePRNews.com) - Olympia, Wash. - Feb 28, 2018 - Data released by PayNet show that a greater number of small businesses defaulted on loans in Washington and the level of borrowing activity rose in December 2017. The data suggest that financial conditions in the state may weaken.
In spite of a 2 basis point increase from November, Washington’s PayNet Small Business Default Index (SBDFI) at 1.42% was still 41 basis points below the national SBDFI level of 1.83%. Year-over-year, Washington’s SBDFI increased 10 basis points, while the national SBDFI has remained consistent.
The three industries with the highest default rates in Washington were Transportation and Warehousing (2.53%); Accommodation and Food Services (2.22%); and Information (2.15%). Nationally, Transportation and Warehousing had a default rate of 4.00%, with a difference of –0.20% compared to the prior year, while Washington had a variance of -0.27%.
Registering at 112.1, the PayNet Small Business Lending Index (SBLI) for Washington improved 1.0% from the previous month’s state level and was 11.7% greater than the national SBLI level of 100.3 this month. Small business borrowers are considering increasing investment.
“Time will tell how these conditions will affect Washington’s economy going forward,” states the president of PayNet, William Phelan.