Small Business Defaults in Colorado on the Decline in May

CHICAGO, Ill., July 24, 2017 (Newswire.com) - PayNet, the premier provider of small business credit assessments on private companies, reports that in May 2017 the percentage of small businesses defaulting on loans has improved in Colorado. Of the 18 major industries, defaults dropped in 14 and increased in only 3 in the state compared to the prior month.

PayNet's Small Business Default Index (SBDFI) for Colorado registered at 1.93 percent after a 7 basis point fall from April. Compared to the national SBDFI level of 1.87 percent, Colorado's SBDFI was 6 basis points greater. The decline in defaults over the past two months may signal better business conditions in the state. Over the last year, the national SBDFI rose 19 basis points, which was a much sharper increase than the 4 basis point increase displayed by the Colorado SBDFI.

Mining, Quarrying, and Oil and Gas Extraction (6.06 percent); Transportation and Warehousing (4.43 percent); and Information (2.86 percent) recorded the highest default rates of all industries in Colorado. Nationally, Mining, Quarrying, and Oil and Gas Extraction had a default rate of 4.36 percent, with a difference of +0.80 percent compared to the prior year, while Colorado had a variance of +0.68 percent.

The PayNet Small Business Lending Index (SBLI) for Colorado was 103.5, exceeding the national SBLI level (98.3) despite dropping by 0.4 percent from the previous month's state level. Small business borrowers are being cautious regarding new investment.

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

Source: www.paynet.com