Language selection

Search

Credit Conditions Survey - 2019

Innovation, Science and Economic Development Canada
Small Business Branch
Research and Analysis Directorate

July 2020

PDF/Excel versions

Notes to readers

The Credit Conditions Survey was conducted between January and March of 2020. The questions were fact-based and focused on financing sought by small enterprises (1 to 99 employees) during the 2019 calendar year.

A total of 1,804 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, 2019
Type of financing Request rate
(%)
Approval rateFootnote *
(%)
Average amount authorized
($)
Debt financing 31 89 451,064
Leasing 13 96 -
Equity financing 3 - -
Trade credit 7 - -

Table 2: Debt financing (long term versus short term), 2019
Type of debt Request rate
(%)
Approval rateFootnote *
(%)
Average interest rateFootnote **** (%) Percentage of collateral required Average amount authorized
($)
Short termFootnote ** 22 92 5.8 45 211,887
Long termFootnote *** 19 86 5 80 657,972
Overall 31 89 5.3 63 451,064

Table 3: Debt financing by enterprise characteristics, 2019
Enterprise characteristics Request rate
(%)
Approval rateFootnote *
(%)
Average amount authorized
($)
Number of employees
1 to 4 employees
24 84 315,562
5 to 9 employees
28 86 257,615
10 to 19 employees
39 90 260,086
20 to 99 employees
46 97 1,021,737
Region
Atlantic
19 97 405,667
Quebec
38 92 236,388
Ontario
24 90 724,897
Manitoba-Saskatchewan
35 90 345,541
Alberta
37 81 461,804
British Columbia & Territories
34 86 405,570
Industry
Primary
43 94 783,983
Construction
31 91 203,522
Manufacturing
29 83 388,102
Wholesale and retail trade
25 89 252,782
Transportation and warehousing
34 83 1,162,435
Professional, scientific and technical services
30 85 300,323
Accommodation and food services
23 88 311,574
Other services (except public administration)
24 92 180,770
Other sectors
36 90 563,874
Age of business
2 years old or younger
39 85 734,765
3 to 10 years old
38 87 291,269
11 to 20 years old
26 89 322,837
More than 20 years old
30 90 549,985
Exporting activities
Exporter
35 90 574,689
Non-exporter
31 88 380,415
Innovation
Product
37 92 269,003
Process
31 78 214,147
Organizational
43 92 238,803
Marketing
44 86 505,639
InnovatorFootnote **
40 87 373,938
Non-innovator
22 92 573,970
Gender of majority ower
Male
31 88 545,657
Female
33 89 98,475
Jointly owned
24 95 389,537
Education level of majority ower
Less than high school
24 83 69,546
High school diploma
31 85 308,475
College/Cegep/Trade school diploma
34 86 530,669
Bachelor's degree
29 92 224,338
Master's degree or above
31 94 706,761
Experience level of majority ower
< 5 years
40 98 248,445
5 to 10 years
45 85 417,891
> 10 years
29 89 474,407
Age of majority ower
Younger than 40 years old
37 95 212,493
40 to 49 years old
38 90 358,717
50 to 64 years old
31 88 487,329
65 years old or older
18 83 1,091,391

Table 4: Main reason for not seeking financing, 2019
Reason Percentage
Financing not needed 88
Unaware of financing sources 2
Thought the request would be turned down 2
Applying for financing too difficult or time consuming 2
Cost of financing too high 2
Don't want to borrow or have debt 2
Economic instability 1
Other reason 0.3

Table 5: Main intended use of debt financing, 2019
Intended use Percentage
Working/Operating capital 44
Purchase or maintain fixed assets 29
Purchase or expand business 17
Consolidate other debt 7
Support entering new market 2
Research and development 1
Other 1

Table 6: Average percentage of total sales by destination, 2019
Destination Percentage
Local municipality or region 76
Rest of province/territory 16
Rest of Canada 5
Rest of the world 4

This analysis was prepared by the Small Business Branch.

The Research and Analysis directorate brings you the latest research and exclusive statistics on SMEs in Canada. For all questions or comments, contact our team at ic.mediarelations-mediasrelations.ic@canada.ca.

The data used for the purpose of this analysis is also available on ic.gc.ca/smeresearch.

Date modified: