A report suggests credit delinquencies among Canadian businesses are on the rise.
Equifax Canada’s latest quarterly business credit trends report says there was a 14.3 per cent uptick in the number of businesses that missed a payment on a credit product between the fourth quarter of 2023 and the fourth quarter of 2022.
The report found a significant surge in installment loan delinquencies, with early−stage delinquencies up by 12.5 per cent and late−stage delinquencies up by 16.3 per cent year−over−year.
Business credit card and line−of−credit delinquencies grew by 1.3 per cent year−over−year.
The report comes on top of recent data showing a 41.4 per cent surge in business insolvencies in 2023 compared with 2022.
Equifax says Canadian businesses are struggling with the impact of higher interest rates, a slowdown in consumer spending and pandemic loan repayments.
banner image: The Canadian Press
