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Credit Conditions Survey - 2012

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The Credit Conditions Survey was conducted between January and March of 2013. The questions were fact-based and focused on financing sought by small enterprises (1 to 99 employees) during the 2012 calendar year.

A total of 2,610 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 1.9% for questions addressed to all respondents. R.A. Malatest & Associates administered the survey for Industry Canada.

The following tables present the key statistics from this survey.

Table 1: Request Rates, Approval Rates and Average Amounts Authorized, 2012
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 26 89 $340,000
Leasing 8 95 $193,000
Equity Financing 4 - -
Trade Credit 8 - -
Table 2: Debt Financing (Long Term Vs. Short Term), 2012
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** 12 88 6 84 $593,000
Short Term*** 19 87 5 70 $288,000
Overall 26 89 5 76 $340,000
Table 3: Debt Financing By Enterprise Characteristics, 2012
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 was considered an "innovator".
Number of Employees
1 to 4 20 85 $153,000
5 to 9 27 92 $284,992
10 to 19 34 90 $247,297
20 to 99 38 91 $904,559
Region
Atlantic 26 96 $326,000
Quebec 28 90 $212,000
Ontario 25 83 $339,000
Manitoba-Saskatchewan 21 97 $272,000
Alberta 23 88 $323,000
British Columbia & Territories 29 94 $552,000
Industry
Accommodation and Food 17 79 $130,000
Construction 37 88 $649,000
Manufacturing 26 81 $426,000
Agriculture and Fishing, Forestry, and Oil and Mining 33 94 $539,000
Professional Services 21 84 $134,000
Transportation/Warehousing 29 91 $198,000
Retail Trade 26 89 $318,000
Wholesale Trade 19 91 $195,000
Retail and Wholesale 25 89 $305,000
Age of Business
3 years old or younger 32 82 $256,000
4 to 10 years old 25 88 $179,000
More than 10 years old 25 90 $408,000
Exporting Activities
Exporter 28 85 $403,000
Non-Exporter 25 89 $332,000
Innovation
Product 32 89 $464,000
Process 35 88 $479,000
Organizational 37 85 $519,000
Marketing 35 87 $415,000
Innovator** 32 89 $412,000
Non-Innovator 20 89 $227,000
Gender of Majority Owner
Male 27 89 $335,000
Female 24 88 $176,000
Jointly Owned 22 89 $568,000
Education Level of Majority Owner
Less than high school 19 89 $225,000
High school diploma 22 91 $257,000
College/Cegep/Trade school diploma 30 88 $279,000
Bachelor Degree 27 88 $534,000
Masters Degree or above 26 88 $291,000
Experience Level of Majority Owner
5 years or less 26 85 $161,000
6 to 10 years 23 90 $198,000
More than 10 years 27 89 $384,000
Age of Majority Owner
Younger than 40 years old 28 87 $344,000
40 to 49 years old 27 91 $184,000
50 to 64 years old 26 88 $399,000
65 years old or older 15 90 $571,000
Table 4: Main Reason for Not Seeking Debt Financing, 2012
Reason %
Financing not needed 86
Investment project postponed 2
Thought request would be turned down 4
Applying for financing too difficult 5
Cost of financing too high 2
Other reason 2
Table 5: Main Intended Use of Debt Financing, 2012
Intended Use %
Fixed asset 35
Working/Operating capital 44
Research and development 2
Debt consolidations 7
Enter a new market 10
Other use 2
Table 6: Export Destinations, 2012
Destination %
Local municipality or region 76.5
Rest of province/territory 15.7
Rest of Canada 4.5
Rest of the world 3.3
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