Small business borrowing falls for 5th consecutive month – PayNet

By awrara ra

Canadian small and medium businesses continue to reduce their borrowing activity according to data released by PayNet.

For small companies, this is the fifth consecutive month of decline, a worrying trend which shows how tough the investment climate has become in the country.

Canada has been struck by drops in commodity prices, not helped by the recent wildfires that ravaged huge amounts of oil production.

PayNet’s Canadian small business lending index found that every industry saw declines except the wholesale sector. PayNet President Bill Phelan told Reuters: "What we're looking at is slower GDP and probably lower credit quality for the future in Canada.

"The contagion is broadening and impacting the smallest companies, which are the leading bellwethers for where GDP is going."

This follows news from the OECD which reported that Canada’s economy was resilient but in need of more reform in order to move away from reliance on oil exports.

Follow @BizReviewCANADA

Read the May 2016 issue of Business Review USA & Canada magazine


Featured Articles

Possibilities endless as generative AI takes centre stage

Generative AI is already playing a pivotal role in the way companies are run; the only question is how quickly it can be integrated into everyday tasks

Why companies should be preparing for scope 3 reporting

With a decision looming on the SEC’s proposed changes to climate-related disclosures, leaders should be examining supplier sustainability credentials

People over profit is steering business in a new direction

An unsettling few years has resulted in more and more companies hiring Chief People Officers to implement a culture that prioritises employee wellbeing

Databricks: The phenomenal rise of a data and AI heavyweight

Technology & AI

Business Chief expands portfolio with new look and coverage

Leadership & Strategy

Google at 25: The remarkable rise of a technology colossus

Technology & AI