Florida Small Business Defaults on the Decline in May

Chicago, IL, July 24, 2017 (Newswire.com) - PayNet, the premier provider of small business credit assessments on private companies, reports that in May 2017 fewer small firms defaulted on loans in Florida. Of the 18 major industries, 9 dropped and 9 increased.

In spite of a 4 basis point drop from April, Florida's PayNet Small Business Default Index (SBDFI) at 2.53% was still 66 basis points above the national SBDFI level of 1.87%. The decline in defaults over the past two months may signal better business conditions in the state. Year-over-year, Florida's SBDFI rose 57 basis points, while the national SBDFI rose 19 basis points.

The three industries with the highest default rate in Florida were Transportation and Warehousing (6.15%); Health Care and Social Assistance (3.39%); and Professional, Scientific, and Technical Services (3.11%). Nationally, Transportation and Warehousing had a default rate of 4.59%, with a difference of +0.99% compared to the prior year, while Florida had a variance of +0.59%.

Florida's PayNet Small Business Lending Index (SBLI) registered at 81.1, declining 0.4% from the previous month's state level, but 17.5% beneath this month's national SBLI level (98.3). Small business borrowers are being cautious and holding off on new investment.

"Falling defaults over recent months signal improved financial health," states William Phelan, president of PayNet.  

Source: www.paynet.com