HomeLoansCanadian business installment loans up 74% in a year, delinquencies rising

Canadian business installment loans up 74% in a year, delinquencies rising

“Many of those businesses that had to borrow to repay their CEBA loans are facing high interest rates and will be challenged to meet their payment obligations,” said Dan Kelly, CFIB president.

Equifax Canada’s head of commercial solutions, Jeff Brown, agrees that the situation exacerbates the debt burden for businesses, with the data showing more are struggling to keep up repayments on their borrowing.

“While it may feel like CEBA is moving into the rear-view mirror, it’s truly a matter of businesses turning to new installment loans to secure their financial stability,” he said Jeff Brown. “Many businesses were focused on the forgiveness deadline and paying back debt to take advantage of this timeline. The increased reliance on these loans has also contributed to a notable rise in delinquencies, particularly in installment loans.”

Outstanding…

Read more at www.wealthprofessional.ca

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