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

How Elon Musk pulled off a $44bn hostile takeover of Twitter

As the world’s richest man, Elon Musk, takes over tech giant Twitter, we highlight the timeline that led to this titanic takeover

Amazon, Alphabet, Wells Fargo best workplaces, says LinkedIn

The top 50 workplaces to grow careers prioritise flexible work and tuition-support programs, as top-ranking firms Amazon and Alphabet prove, says LinkedIn

Top 10 women in technology in the US

These 10 women in tech are forging a path into bold areas of innovation and technological ambition, according to sister publication Technology Magazine

8 executive moves to crypto – from mainstream to startup

Technology & AI

Digital Twins tech ‘missing link’ in urban decarbonisation

Technology & AI

The Metaverse Foundry from Infosys is a business playground

Technology & AI