Small Business Defaults in Ohio Up in March

PayNet, the premier provider of credit ratings on small businesses, announces that in March 2017 overall defaults increased within Ohio’s small businesses. Of the 18 major industries, defaults worsened in 12 and improved in 6 in the state compared to last month.

In spite of a 12 basis point increase from February, Ohio's 1.55% PayNet Small Business Default Index (SBDFI) was still 32 basis points under the national SBDFI level of 1.87%.  Year-over-year, the national SBDFI increased 25 basis points, while Ohio's SBDFI rose 23.

Transportation and Warehousing (3.22%); Retail Trade (2.53%); and Mining, Quarrying, and Oil and Gas Extraction (2.29%) recorded the worst default rates of all industries in Ohio. Nationally, Transportation and Warehousing had a default rate of 4.49%, with a difference of +1.24% compared to the prior year variance of +1.21% in Ohio.

Registering at 100.9, the PayNet Small Business Lending Index (SBLI) for Ohio improved 0.6% from the previous month's state level and was 2.6% higher than this month's national SBLI level of 98.3. Year-over-year, business investment deteriorated 4.0%, reducing future growth potential.

"Time will tell how these conditions will affect Ohio's economy going forward," says William Phelan, president of PayNet.