Press Release – updated: Dec 18, 2017 09:14 CST
CHICAGO, December 18, 2017 – PayNet, the leading provider of small business credit data and analysis for the commercial and industrial lending industry, announces that in October 2017 overall defaults decreased among small businesses in California. Of the 18 major industries, defaults improved in 13 and worsened in 5 in the state compared to last month.
The PayNet Small Business Default Index (SBDFI) for California registered at 1.64% following a 3 basis point improvement from September. Compared to the national SBDFI level of 1.84%, California's SBDFI was 20 basis points lower. Financial health is weaker than a year ago in the state despite the recent downturn in defaults. California's SBDFI rose 16 basis points year-over-year, which was a significantly steeper climb than the 2 basis point increase exhibited by the national SBDFI.
The three industries with the highest default rates in California were Transportation and Warehousing (4.35%); Information (3.27%); and Accommodation and Food Services (2.06%). Nationally, Transportation and Warehousing had a default rate of 4.38%, with a difference of +0.17% compared to the prior year, while California had a variance of +0.89%.
Although the local economy is not on a par with last year's level, recent trends show that the tides may have turned in California's favor.
William Phelan, President
The PayNet Small Business Lending Index (SBLI) for California was 97.5, rising 0.1% from last month's state level, but 2.5% lower than this month's national SBLI level (100.0). Year-over-year, business investment fell 3.0%.
“Although the local economy is not on a par with last year's level, recent trends show that the tides may have turned in California's favor,” states William Phelan, president of PayNet.
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