Tennessee Small Business Defaults Up in January, Borrowing Down: PayNet

NASHVILLE, Tenn., March 23, 2018 (Newswire.com) - A greater number of small businesses defaulted on existing loans in Tennessee and the level of borrowing activity worsened in January 2018, data released by PayNet illustrate.

The PayNet Small Business Default Index (SBDFI) for Tennessee registered at 1.78% after a 4 basis point rise from December. Tennessee's SBDFI was 4 basis points less than the national SBDFI level of 1.82%. The national SBDFI declined 2 basis points over the last year, while Tennessee's SBDFI declined 22 basis points.

The three industries with the highest default rates in Tennessee were Transportation and Warehousing (4.12%); Information (3.87%); and Agriculture, Forestry, Fishing and Hunting (2.56%). Nationally, Transportation and Warehousing had a default rate of 3.91%, with a difference of -0.40% compared to the prior year, while Tennessee had a variance of -0.46%.

Tennessee's PayNet Small Business Lending Index (SBLI) registered at 97.1, falling 1.9% from the previous month's level and 4.5% beneath this month's national SBLI level (101.7).

"The uptick in defaults over the past two months may signal weakening financial health in the state," asserts William Phelan, president of PayNet.

Source: www.paynet.com