Businesses Lean on Revolving Credit Amidst Rising Financial Stress - Seite 2

Brown further emphasized the impact of early delinquencies on both financial and industrial trades. “The persistent rise in early delinquency rates in these trades suggests that businesses are struggling to meet their financial obligations,” he explained. “Typically, businesses prioritize paying their suppliers to maintain operations, but it is disturbing to see consecutive quarterly increases in delinquencies on the supplier side as well.”

MAJORITY OF CANADIAN BUSINESSES HAVE A POSITIVE OUTLOOK
Despite the challenges posed by rising interest rates and high inflation, Statistics Canada data shows that 73.5 per cent of businesses surveyed are optimistic about their future over the next 12 months.

“Equifax data also suggests some regional gains in the demand for commercial credit, which is a positive sign and speaks to the resilience and optimism of Canadian businesses,” Brown acknowledged. “However, it is essential to consider the potential consequences of the current credit landscape. Equifax Canada continues to monitor the situation closely and provides crucial data to support businesses and lenders so they can make informed credit decisions during these uncertain times.”

As borrowing behaviours continue to evolve, financial institutions and lending organizations should consider adapting their offerings to meet the changing demands of consumers and businesses. Understanding these trends can help individuals and organizations make informed decisions regarding their credit choices.

About Equifax
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 14,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.ca.

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