Small Business Defaults in New Mexico Down in January

In January 2018, the percentage of New Mexico's small businesses defaulting on existing loans has improved, according to data released by PayNet. Of the 18 major industries, 11 fell and 7 increased in the state.

The PayNet Small Business Default Index (SBDFI) for New Mexico registered at 2.09% following a 6 basis point fall from December. Compared to the national SBDFI level of 1.82%, New Mexico's SBDFI was 27 basis points higher. The decrease in defaults over the past four months may signal improving financial health in the state. Year-over-year, the national SBDFI dropped 2 basis points, while New Mexico's SBDFI fell 14 basis points.

The three industries with the highest default rates in New Mexico were Transportation and Warehousing (4.56%); Mining, Quarrying, and Oil and Gas Extraction (3.92%); and Information (2.79%). Nationally, Transportation and Warehousing had a default rate of 3.91%, with a difference of -0.40% compared to the prior year, while New Mexico had a variance of -0.87%.

New Mexico's PayNet Small Business Lending Index (SBLI) registered at 85.2, down 0.2% from the previous month's state level, and 16.2% lower than the national SBLI level of 101.7 this month.

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

Source: PayNet, Inc.

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Tags: Banking, Credit History, Credit Trends, Economy, Local News, New Mexico, PayNet, SBDFI, SBDI, SBLI, Small biz, Small Business


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