TORONTO — A new report says more Canadian businesses are missing debt payments.
The report by Equifax Canada says overall delinquencies for businesses in the third quarter rose 3.4 per cent compared with the previous quarter, signalling potential challenges in debt repayment.
The report also says credit demand among businesses showed a seasonal drop of 1.9 per cent from last quarter, but was up 13.2 per cent year over year.
Equifax Canada says the data shows that more existing businesses are seeking credit as the end of the year approaches, which could be a sign of early financial stress.
Jeff Brown, head of commercial solutions at Equifax Canada, says the data suggests a shift in behaviour among businesses, with increased reliance on existing credit lines and cards.
Brown says that while this may reflect a cautious approach in response to rising interest rates, it also raises concerns about potential debt burdens.
This report by The Canadian Press was first published Dec. 12, 2023.
The Canadian Press
