Small Business Defaults in New Mexico Down in January

Santa Fe, New Mexico, March 16, 2018 (Newswire.com) - 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.