Small Business Defaults in New Jersey Down in January

Trenton, NJ, March 16, 2018 (Newswire.com) - ​In January 2018, small business loan defaults decreased in New Jersey's business community, with default rates in 14 of the 18 major industries falling in the state, data issued by PayNet shows.

Following a 4 basis point dip from December, New Jersey's PayNet Small Business Default Index (SBDFI) at 1.55% was 27 basis points less than the national SBDFI level of 1.82%. Despite the favorable improvement from the previous month, the index is basically unchanged from a year ago. Both the New Jersey and national SBDFI fell 2 basis points over the last year.

The three industries with the highest default rates in New Jersey were Transportation and Warehousing (3.19%); Public Administration (2.78%); and Information (2.70%). Nationally, Transportation and Warehousing had a default rate of 3.91%, with a difference of -0.40% compared to the prior year, while New Jersey had a variance of +0.17%.

The PayNet Small Business Lending Index (SBLI) for New Jersey came in at 95.0, increasing 0.3% from the previous month's state level, but 6.5% lower than this month's national SBLI level (101.7). Year-over-year, business investment deteriorated 4.0%.

"Lower default rates project a more positive view of economic prospects," asserts William Phelan, president of PayNet.  

Source: PayNet Inc.