Jun
04
2014

Zombie Apocalypse Meets Polar Vortex for Some Struggling Small Businesses

PolarVortex

Bloomberg Businessweek published a really great article in “The New Entrepreneur” section titled “Small Business Borrowers Haunted by Polar Vortex and Zombies.”  Bloomberg references our recent Q1 2014 Experian/Moody’s Analytics Small Business Credit Index report which details the regional business credit divide between western states and the east, where the Florida housing market has been especially slow to bounce back, and businesses are having a harder time paying bills on time.

Experian and Moody’s Analytics has been tracking data since early 2010 and Florida has been among the worst performers of late. The housing collapse decimated the local construction industry and the Great Recession choked off population growth as seniors across the U.S. held off on retirement. The share of balances being paid late by small companies in Florida is stuck at 25.6%, up 0.8 percentage point from the final quarter of 2013. Eleven of Florida’s 22 metro areas, including Miami, Tallahassee, and Orlando, are in the bottom 10% of U.S. metros in terms of credit performance, and it is construction that is hurting overall credit the most.

The Sunshine State also seems to be the victim of zombie small businesses—companies that are weak enough to miss debt payments but strong enough to avoid bankruptcy.
Bloomberg Businessweek, Small Business

Click here to read the full Bloomberg Businessweek article.

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