Dallas, Texas - November 21, 2017 - (Newswire.com)
A greater amount of small businesses defaulted on existing loans in Texas and the level of borrowing activity improved in September 2017, data published by PayNet show. The indices suggest that financial conditions in the state may weaken.
Following a 5 basis point climb from August, Texas' PayNet Small Business Default Index (SBDFI) at 2.96% was the worst in the country and was 110 basis points greater than the national SBDFI level of 1.86%. Financial health is stronger than a year ago in the state despite the recent uptick in defaults. The national SBDFI increased 7 basis points over the last year, whereas Texas' SBDFI dipped 17 basis points.
The industries with the highest default rates in Texas were Transportation and Warehousing (6.22%); Mining, Quarrying, and Oil and Gas Extraction (5.45%); and Manufacturing (3.93%). Nationally, Transportation and Warehousing had a default rate of 4.43%, with a difference of +0.35% compared to the prior year, while Texas had a variance of -2.05%.
Registering at 117.4, the PayNet Small Business Lending Index (SBLI) for Texas increased 1.1% from the previous month's state level and was 18.5% above the national SBLI level of 99.1 this month.
"Following a period of status quo, small businesses in Texas are taking greater risk to borrow while controlling their default rates," explains the president of PayNet, William Phelan.
Press Release Service by Newswire.com
Original Source: Texas Small Business Defaults Up in September, as is Borrowing
