Credit Conditions Survey - 2009

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The survey was conducted in August and September 2009. The questions focused on financing sought by small enterprises (1 to 100 employees) since August 2008. The answers refer to the 13-month period between August 2008 and September 2009.

A total of 3,200 small businesses completed the questionnaire which included 25 questions. This is the second largest Canadian survey on small business financing. The margin of error is 1.8%, 19 times out of 20 for questions addressed to all respondents. Leger Marketing administered the survey, which was largely based on Statistics Canada's triennial Survey on Financing of Small and Medium Enterprises. You can view the Survey Questionnaire.

The following tables present the key statistics from this survey.

Table 1: Request And Approval Rates And Average Amounts Authorized
Financing Type Request Rate Approval Rate Note * referrer of Table 1 Average Amount Authorized Note ** referrer of Table 1
Note * of Table 1: A request that received either full approval or partial approval was considered "approved".
Note ** of Table 1: Approved amounts were calculated using categorical answers in conjunction with adjusted mean or median values based on Statistics Canada's Survey on Financing of Small and Medium Enterprises 2007 data.
All Types 16.1% 80% $265,234
Debt Financing 14.0% 79% $238,468
Leasing 1.0% 76% $181,518
Equity Financing 1.3% 85% $251,231
Trade Credit 1.2% 82% $64,836
Table 2: Distribution Of Total Financing Authorized By Type Of Financing
Financing Type Share
Note * of Table 2: Includes financing from government institutions (e.g., no interest loans)
Debt Financing 79%
Leasing 4%
Equity Financing 7%
Trade Credit 2%
Other Note * referrer of Table 2 8%
Table 3: Debt Financing (Long Term Vs. Short Term)
Type of Debt Financing Request Rate Approval Rate Average Interest Rate Note *** referrer of Table 3 % Collateral Required Note *** referrer of Table 3 Average Amount Authorized
Note * of Table 3: Mortgages and term loans.
Note ** of Table 3: Lines of credit and credit cards.
Note *** of Table 3: Interest rates and collateral requirements are the weighted averages of related sub-categories.
Long Term Note * referrer of Table 3 8% 78% 5.5% 67% $249,360
Short Term Note ** referrer of Table 3 9% 78% 6.9% 47% $162,461
Total 14% 79% 6.2% 56% $238,468
Table 4: Debt Financing By Enterprise Characteristics
Number of Employees Request Rate Approval Rate Average Amount Authorized
Note * of Table 4: Primary includes the following: agriculture and fishing, forestry, and oil and mining.
1 to 4 10% 70% $102,373
5 to 9 16% 89% $157,607
10 to 19 19% 85% $324,016
20 to 100 27% 79% $571,423
Region
Atlantic 11% 99% $189,556
Quebec 16% 79% $173,621
Ontario 15% 77% $268,272
Manitoba-Saskatchewan 13% 87% $340,237
Alberta 16% 71% $292,454
British Columbia 12% 81% $206,119
Industry
Accommodation and Food 16% 81% $173,919
Construction 13% 99% $412,940
Manufacturing 24% 87% $202,527
Primary Note * referrer of Table 4 27% 86% $401,380
Professional Services 9% 76% $200,379
Transportation/Warehousing 20% 79% $313,851
Wholesale and Retail 15% 70% $151,986
Age of Business
3 years old or younger 30% 44% $115,898
4 to 10 years old 17% 85% $202,153
More than 10 years old 12% 82% $275,702
Exportation
Exporter 18% 84% $281,103
Non-Exporter 14% 78% $221,286
Region
Rural 17% 93% $237,607
Urban 14% 75% $238,735
Table 5: Intended Use Of Debt Financing Note * referrer of Table 5
Intended Use % Firms That Sought Debt Financing
Note * of Table 5: The sum of the percentages will not equal 100% since firms often provided multiple answers.
Note ** of Table 5: Land, Vehicles, Computer Hardware/Software, Other Machinery.
Land and Buildings 22%
Vehicles/Rolling Stock 15%
Computer Hardware/Software 6%
Other Machinery/Equipment 19%
Fixed Assets Note ** referrer of Table 5 49%
Working/Operating Capital 56%
Research & Development 3%
Debt Consolidations 10%
Refinancing Maturing Debt 6%
Intangibles (e.g., training, goodwill) 4%
Purchasing a Business 3%
Table 6: Percentage Of Small Enterprises Re-Investing Capital In The Business
Region % Firms That Re-Invested
Note * of Table 6: Primary includes the following: agriculture and fishing, forestry, and oil and mining.
Atlantic 60%
Quebec 39%
Ontario 48%
Manitoba-Saskatchewan 59%
Alberta 47%
British Columbia 53%
Industry
Accommodation and Food 48%
Construction 46%
Manufacturing 53%
Primary Note * referrer of Table 6 57%
Professional Services 43%
Transportation/Warehousing 50%
Wholesale and Retail 49%
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