BRITISH COLUMBIA – The latest data from Equifax® Canada’s Market Pulse Quarterly Business Credit Trends Report shows a 41.4 per cent rise in business insolvencies in 20B23 when compared to 2022 as well as a 14.3 per cent increase in businesses that have missed payments on a credit product from Q4 2023 vs Q4 2022.
The CEBA (Canada Emergency Business Account) loans are a contributing factor as the recent repayment deadline has proved a financial challenge coupled with higher interest rate. On January 19, 2024, CEBA loans converted to a three-year term loan with five per cent interest payable per year.
“Canadian businesses are facing a perfect storm of economic pressures,” says Jeff Brown, Head of Commercial Solutions for Equifax Canada. “The end of the initial grace period for CEBA loans, combined with high input costs, labour expenses, a slowdown…
