Credit Conditions Survey - 2016

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The Credit Condition Survey was conducted between January and March of 2017. The questions were fact-based and focused on financing sought by small enterprises (1 to 99 employees) during the 2016 calendar year.

A total of 2,111 small businesses completed the questionnaire, which included questions. This is the second largest Canadian survey on small business financing. The margin of error is 2.1% for questions addressed to all respondents. R.A. Malatest & Associates administratered the survey for Innovation, Science and Economic Development Canada.

The following tables present the key statistics from this survey.

Table 1: Request Rates, Approval Rates and Average Amounts Authorized, 2016
Type of Financing Request Rate Approval RateFootnote * Average Amount Authorized
Debt Financing 26 82 $270,000
Leasing 9 94 -
Equity Financing 3 - -
Trade Credit 7 - -
Table 2: Debt Financing (Long Term versus Short Term), 2016
Type of Debt Request Rate Approval RateFootnote * Average Interest Rate % Collateral Required Average Amount Authorized
Long TermFootnote 1 12 84 4.9 84 $480,000
Short TermFootnote 2 21 82 5.5 59 $200,000
Overall 26 82 5.3 63 $270,000
Table 3: Debt Financing By Enterprise Characteristics, 2016
Enterprise Characteristics Request Rate Approval RateFootnote * Average Amount Authorized Total Amount
authorized-to-requested ratio
Number of Employees
1 to 4 employees 23 82 $150,000 85
5 to 9 employees 23 76 $170,000 68
10 to 19 employees 32 83 $470,000 90
20 to 99 employees 39 92 $450,000 99
Region
Atlantic 26 80 $150,000 66
Quebec 28 80 $420,000 95
Ontario 23 85 $340,000 83
Manitoba-Saskatchewan 25 81 $120,000 89
Alberta 31 78 $190,000 82
British Columbia & Territories 25 86 $110,000 85
Industry
Accommodation and Food 26 80 $140,000 82
Construction 35 87 $110,000 79
Manufacturing 26 85 $290,000 84
Agriculture and Fishing, Forestry, and Oil and Mining 29 81 $500,000 88
Professional Services 24 84 $78,000 68
Transportation/Warehousing 30 89 $140,000 93
Retail and Wholesale 29 81 $240,000 86
Age of Business
3 years old or younger 35 86 $220,000 77
4 to 10 years old 31 74 $160,000 84
More than 10 years old 24 81 $270,000 87
Exporting Activities
Exporter 28 78 $300,000 88
Non-exporter 26 83 $270,000 87
Innovation
Product 34 79 $160,000 81
Process 37 81 $250,000 84
Organizational 44 76 $530,000 92
Marketing 36 81 $190,000 84
InnovatorFootnote ** 34 82 $300,000 88
Non-innovator 19 83 $220,000 82
Gender of Majority Owner
Male 25 83 $310,000 89
Female 28 85 $180,000 93
Jointly Owned 32 75 $82,000 40
Education Level of Majority Owner
Less than high school 28 88 $260,000 87
High school diploma 27 83 $160,000 79
College/Cegep/Trade school diploma 27 82 $170,000 85
Bachelor Degree 25 81 $570,000 93
Masters Degree or above 24 78 $210,000 70
Experience Level of Majority Owner
< 5 years 37 85 $180,000 90
5 to 10 years 29 78 $330,000 93
> 10 years 25 83 $260,000 84
Age of Majority Owner
Younger than 40 years old 24 89 $210,000 90
40 to 49 years old 31 83 $250,000 92
50 to 64 years old 28 80 $280,000 82
65 years old or older 12 84 $300,000 87
Table 4: Main Reason for Not Seeking Financing, 2016
Reason %
Financing not needed 85
Unaware of financing sources 3
Thought the request would be turned down 4
Applying for financing too difficult or time consuming 4
Cost of financing too high 2
Other reason 3
Table 5: Main Intended Use of Debt Financing, 2016
Intended Use %
Fixed asset 32
Working/Operating capital 49
Research and development 2
Debt consolidation 7
Enter a new market 4
Other use 6
Table 6: Sale Destinations, 2016
Destination %
Local municipality or region 76
Rest of province/territory 15
Rest of Canada 5
Rest of the world 4
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