Thinking about investing in a small business? Do not head West; go South.
At least that’s the takeaway from new data published by WAIN Street, a company whose monthly index predicts the likelihood of 18 million small businesses in a variety of sectors and geographic regions to default on financial obligations. The index aggregates micro-level indicators of credit performance such as bankruptcy and delinquency concerning U.S. businesses with a headcount of fewer than 20, but excludes sole proprietors and businesses with a single owner/operator.
WAIN Street publisher and financial analyst Vidur Dhanda reports that, overall, his Business Default Index—quoted as a seasonally adjusted, annualized default rate—showed an improvement of 0.06 percent between September and October, but says the improvement was narrow with a near equal number of businesses improving and deteriorating in credit quality.
“The improvement is remarkable considering the drama in D.C. at the start of October,” DhandaRead More »from Southern small businesses safest loan bets, data show