PayNet, the leading provider of credit ratings on small businesses, announces that in April 2017 the percentage of Arizona’s small businesses defaulting on existing loans has dipped, with default rates in 14 of the 18 major industries falling in the state.
Following a 2 basis point fall from March, Arizona’s PayNet Small Business Default Index (SBDFI) at 1.83% was 7 basis points under the national SBDFI level of 1.90%. The decline in defaults over the past three months may signal improving financial health in the state. Arizona’s SBDFI increased 29 basis points year-over-year, while the national SBDFI rose 26 basis points.
The industries with the highest default rate in Arizona were Transportation and Warehousing (5.12%); Mining, Quarrying, and Oil and Gas Extraction (3.99%); and Admin & Support and Waste Management & Remediation Services (3.02%). Nationally, Transportation and Warehousing had a default rate of 4.54%, with a difference of +1.12% compared to the prior year versus a variance of +1.41% in Arizona.
Registering at 92.3, Arizona’s PayNet Small Business Lending Index (SBLI) fell 0.4% from the previous month’s level and was 6.0% lower than this month’s national SBLI level (98.2). Small business borrowers are being cautious and holding off on new investment.
“Falling defaults over recent months signal improved financial health,” said the president of PayNet, William Phelan.