Merchant Advance Blog

Blog Article: New Data Shows Growth in Small Business Loan Activity

Canadian small business data provider and risk management institution, PayNet, has released new data showing improvement in commercial borrowing at the end of the second fiscal quarter. The Canadian Business Lending Index offers 19 distinct indices measuring lending activity of small and medium businesses in Canada: it rose to 135.8 in June from 134.0 in May.


This index shows that small business loan activity is reflective of a general trend toward organic growth and recovery from what some economists termed a mild recession in the first half of 2015.

The increase in small business loan activity was offset by slight increases in delinquency. According to Paynet, moderate loan delinquencies – those that are behind in payments by 30 days or more – edged up to 1.08 percent of loans in June from 1.01 percent the month before. Loans that were more than 90 days late similarly rose to 0.32 percent from 0.29 percent.

PayNet’s data reflects the fact that Canadian small businesses are outperforming the broader national economy, but that material strains exist in certain portions of the country – notably those affected by the decline in oil prices. This province-by-province conclusion is corroborated by other metrics such as the CFIB’s Small Business Barometer, which takes into account the expectation of growth or expansion by small business owners.

Business owners seeking a small business loan should take advantage of this transitional period in the Canadian economic climate. Merchant Advance products are designed to continually adjust to the sales volume of your business, helping mitigate the effect of the ups and downs inherent in the small business marketplace and keeping your business funded without creating undue pressure on your finances due to repayment.



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