Arizona Small Business Defaults on the Decline in January

Phoenix, AZ, March 14, 2018 (Newswire.com) - PayNet, the leading provider of credit ratings on small businesses, reports that in January 2018 the percentage of small businesses defaulting on loans has fallen in Arizona. Of the 18 major industries, defaults improved in 11 and worsened in 6 in the state compared to last month.

In spite of a 6 basis point drop from December, Arizona's PayNet Small Business Default Index (SBDFI) at 1.97% was still 15 basis points higher than the national SBDFI level of 1.82%. Year-over-year, Arizona's SBDFI rose 7 basis points, whereas the national SBDFI fell 2 basis points.

The three industries with the worst default rates in Arizona were Transportation and Warehousing (3.25%); Health Care and Social Assistance (2.93%); and Admin & Support and Waste Management & Remediation Services (2.87%). Nationally, Transportation and Warehousing had a default rate of 3.91%, with a difference of -0.40% compared to the prior year, while Arizona had a variance of -1.90%.

Registering at 93, Arizona's PayNet Small Business Lending Index (SBLI) increased 0.8% from the previous month's state level, but was 8.5% below this month's national SBLI level (101.7).

"Any small business growth bodes well for future GDP," asserts William Phelan, president of PayNet.

Source: PayNet