Credit Conditions Survey - 2010

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The Credit Conditions Survey was conducted in May and June 2011. The questions were fact-based and focused on financing sought by small enterprises (1 to 99 employees) during the 2010 calendar year.

A total of 3,573 small businesses completed the questionnaire, which included 27 questions. This is the second largest Canadian survey on small business financing. The margin of error is 1.6%, 19 times out of 20, for questions addressed to all respondents. Leger Marketing administered the survey for Industry Canada. You can view the Survey questionnaire.

The following tables present the key statistics from this survey.

Table 1: Request Rates, Approval Rates and Average Amounts Authorized, 2010
Type of Financing Request Rate Approval Rate* Average Amount Authorized
* A request that received either full approval or partial approval was considered "approved".
Debt Financing 18% 88% $319,000
Leasing 2% 97% $189,000
Equity Financing 1%
Trade Credit 1%
Table 2: Debt Financing (Long Term Vs. Short Term), 2010
Type of Debt Request Rate Approval Rate* Average Interest Rate % Collateral Required Average Amount Authorized
* A request that received either full approval or partial approval was considered "approved".
** Non-residential mortgages and term loans.
*** Business lines of credit and credit cards
Long Term** 9% 92% 5.4% 72% $415,000
Short Term*** 11% 85% 6.2% 60% $187,000
Overall 18% 88% 5.7% 67% $319,000
Table 3: Debt Financing By Enterprise Characteristics, 2010
Enterprise Characteristics Request Rate Approval Rate* Average
Amount
Authorized
* A request that received either full approval or partial approval was considered "approved".
** A firm that developed or introduced a product, process, organizational or marketing innovation in the 2010 calendar year.
Number of Employees
1 to 4 15% 84% $177,000
5 to 9 21% 88% $327,000
10 to 19 23% 93% $300,000
20 to 99 24% 97% $883,000
Region
Atlantic 14% 97% $185,000
Quebec 25% 87% $177,000
Ontario 16% 86% $275,000
Manitoba-Saskatchewan 20% 100% $305,000
Alberta 15% 90% $338,000
British Columbia & Territories 19% 83% $777,000
Industry
Accommodation and Food 17% 84% $95,000
Construction 26% 95% $235,000
Manufacturing 28% 88% $636,000
Agriculture and Fishing, Forestry, and Oil and Mining 20% 100% $561,000
Professional Services 13% 86% $138,000
Transportation/Warehousing 23% 81% $573,000
Retail Trade 16% 86% $123,000
Wholesale Trade 18% 93% $603,000
Retail and Wholesale 17% 88% $255,000
Age of Business
3 years old or younger 23% 88% $141,000
4 to 10 years old 20% 85% $359,000
More than 10 years old 17% 90% $331,000
Exporting Activities
Exporter 21% 86% $703,000
Non-Exporter 18% 88% $266,000
Region
Rural 19% 93% $369,000
Urban 18% 86% $302,000
Innovation
Product 24% 82% $196,000
Process 20% 93% $595,000
Organizational 29% 91% $317,000
Marketing 25% 85% $432,000
Innovator** 25% 87% $394,000
Non-Innovator 15% 89% $252,000
Gender of Majority Owner
Male 19% 88% $366,000
Female 16% 87% $110,000
Jointly Owned 17% 84% $213,000
Education Level of Majority Owner
Less than high school 21% 87% $159,000
High school diploma 19% 87% $200,000
College/Cegep/Trade school diploma 19% 88% $186,000
Bachelor Degree 18% 89% $594,000
Masters Degree or above 17% 90% $658,000
Experience Level of Majority Owner
5 years or less 23% 88% $88,000
6 to 10 years 19% 84% $138,000
More than 10 years 18% 89% $363,000
Age of Majority Owner
Younger than 40 years old 23% 90% $150,000
40 to 49 years old 22% 90% $370,000
50 to 64 years old 17% 86% $286,000
65 years old or older 13% 87% $370,000
Table 4: Main Reason for Not Seeking Debt Financing, 2010
Reason %
Financing not needed 89%
Investment project postponed 1%
Thought request would be turned down 3%
Applying for financing too difficult 3%
Cost of financing too high 2%
Other reason 2%
Table 5: Main Intended Use of Debt Financing, 2010
Intended Use %
Fixed asset 34%
Working/Operating capital 54%
Research and development 2%
Debt consolidations 5%
Enter a new domestic market 1%
Enter a new global market 1%
Other use 3%
Table 6: Export Destinations, 2010
Destination %
Local municipality or region 93%
Local municipality or region only 54%
Rest of province/territory 37%
Rest of Canada 19%
United States 9%
Rest of the world 5%
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