Credit Condition Survey - 2018

The Credit Condition Survey was conducted between January and March of 2019. The questions were fact-based and focused on financing sought by small enterprises (1 to 99 employees) during the 2018 calendar year.

A total of 1,877 small businesses completed the questionnaire. This is the second largest Canadian survey on small business financing. The margin of error is 2.3% for questions addressed to all respondents. R.A. Malatest & Associates administered 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, 2018
Type of Financing Request Rate Approval RateFootnote * Average Amount Authorized
Debt Financing 27 83 $268,000
Leasing 9 96 -
Equity Financing 3 - -
Trade Credit 6 - -
Table 2: Debt Financing (Long Term versus Short Term), 2018
Type of Debt Request Rate Approval RateFootnote * Average Interest Rate % Collateral Required Average Amount Authorized
Long TermFootnote 1 15 79 4.9 79 $400,000
Short TermFootnote 2 20 83 6.2 47 $194,000
Overall 27 83 5.7 55 $268,000
Table 3: Debt Financing By Enterprise Characteristics, 2018
Enterprise Characteristics Request Rate Approval RateFootnote * Average Amount Authorized
Number of Employees
1 to 4 employees 23 78 $118,000
5 to 9 employees 26 90 $417,000
10 to 19 employees 34 87 $289,000
20 to 99 employees 36 78 $322,000
Region
Atlantic 31 81 $185,000
Quebec 35 80 $231,000
Ontario 25 84 $370,000
Manitoba-Saskatchewan 30 95 $232,000
Alberta 26 78 $277,000
British Columbia & Territories 22 81 $173,000
Industry
Accommodation and Food 29 85 $114,000
Construction 29 87 $199,000
Manufacturing 27 84 $190,000
Agriculture and Fishing, Forestry, and Oil and Mining 29 89 $412,000
Professional Services 24 78 $163,000
Transportation/Warehousing 31 79 $143,000
Retail and Wholesale 29 89 $245,000
Age of Business
3 years old or younger 47 81 $154,000
4 to 10 years old 28 74 $120,000
More than 10 years old 27 81 $311,000
Exporting Activities
Exporter 32 73 $672,000
Non-exporter 28 84 $194,000
Innovation
Product 33 74 $156,000
Process 33 77 $281,000
Organizational 34 79 $161,000
Marketing 37 72 $132,000
InnovatorFootnote ** 32 76 $209,000
Non-innovator 23 90 $184,000
Gender of Majority Owner
Male 27 80 $329,000
Female 28 88 $129,000
Jointly Owned 30 87 $144,000
Education Level of Majority Owner
Less than high school 32 80 $160,000
High school diploma 25 84 $576,000
College/Cegep/Trade school diploma 28 87 $194,000
Bachelor Degree 31 74 $224,000
Masters Degree or above 24 88 $163,000
Experience Level of Majority Owner
< 5 years 47 88 $227,000
5 to 10 years 32 83 $116,000
> 10 years 26 82 $305,000
Age of Majority Owner
Younger than 40 years old 28 84 $238,000
40 to 49 years old 29 85 $132,000
50 to 64 years old 29 79 $209,000
65 years old or older 21 91 $683,000
Table 4: Main Reason for Not Seeking Financing, 2018
Reason %
Financing not needed 85
Unaware of financing sources 2
Thought the request would be turned down 4
Applying for financing too difficult or time consuming 4
Cost of financing too high 5
Other reason 2
Table 5: Main Intended Use of Debt Financing, 2018
Intended Use %
Fixed asset 32
Working/Operating capital 51
Research and development 1
Debt consolidation 7
Enter a new market 4
Other use 6
Table 6: Sale Destinations, 2018
Destination %
Local municipality or region 76
Rest of province/territory 16
Rest of Canada 4
Rest of the world 4
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