Canadian businesses are showing signs of financial strain as credit delinquencies increase. A new Equifax Canada report reveals a 14.3% rise in businesses missing credit payments between the fourth quarters of 2022 and 2023.
Installment loan defaults are particularly concerning, with early-stage delinquencies up 12.5% and late-stage delinquencies up 16.3%. Even credit cards and lines-of-credit show a 1.3% increase in missed payments.
This trend aligns with a 41.4% surge in business insolvencies in 2023 (compared to 2022), as reported by the Office of the Superintendent of Bankruptcy. According to Equifax, the culprits are higher interest rates, reduced consumer spending, and the repayment of pandemic-era loans.
