Small Business Defaults in Wisconsin on the Rise in August

Chicago, IL, October 23, 2017 (Newswire.com) - PayNet, the premier provider of small business credit assessments on private companies, announces that in August 2017 the percentage of Wisconsin's small businesses defaulting on existing loans has risen. Of the 18 major industries, 5 rose in the state compared to the previous month.

The PayNet Small Business Default Index (SBDFI) for Wisconsin was second best in the country at only 1.23% following a 3 basis point increase from July. Compared to the national SBDFI level of 1.84%, Wisconsin's SBDFI was 61 basis points less. Despite the unfavorable uptick from the previous month, the index is basically unchanged from a year ago. The national SBDFI increased eight basis points year-over-year, while Wisconsin's SBDFI has remained unchanged.

The industries with the highest default rate in Wisconsin were Transportation and Warehousing (3.44%); Agriculture, Forestry, Fishing and Hunting (2.28%); and Accommodation and Food Services (1.74%). Nationally, Transportation and Warehousing had a default rate of 4.51%, with a difference of +0.48% compared to the prior year, while Wisconsin had a variance of -0.69%.

Registering at 121.8, Wisconsin's PayNet Small Business Lending Index (SBLI) ranked 2nd in the country, performing on par with the previous month's state level and was 22.7% higher than the national SBLI level of 99.3 this month. Year-over-year, business investment deteriorated 3.0%.

"This collectively means increased risk taking with stable credit quality of small businesses," asserts William Phelan, president of PayNet.  

Source: PayNet