Equifax report says Q3 business delinquencies up from previous quarter

A new report says more Canadian businesses are missing debt payments.

The report by Equifax Canada says overall delinquencies for businesses in the third quarter rose 3.4% compared with the previous quarter, signalling potential challenges in debt repayment.

The report also says credit demand among businesses showed a seasonal drop of 1.9% from last quarter, but was up 13.2% year over year.

Equifax Canada says the data shows that more existing businesses are seeking credit as the end of the year approaches, which could be a sign of early financial stress.

Jeff Brown, head of commercial solutions at Equifax Canada, says the data suggests a shift in behaviour among businesses, with increased reliance on existing credit lines and cards.

Brown says that while this may reflect a cautious approach in response to rising interest rates, it also raises concerns about potential debt burdens.

The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.