Credit Conditions Survey - 2009

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The survey was conducted in August and September 2009. The questions focused on financing sought by small enterprises (1 to 100 employees) since August 2008. The answers refer to the 13-month period between August 2008 and September 2009.

A total of 3,200 small businesses completed the questionnaire which included 25 questions. This is the second largest Canadian survey on small business financing. The margin of error is 1.8%, 19 times out of 20 for questions addressed to all respondents. Leger Marketing administered the survey, which was largely based on Statistics Canada's triennial Survey on Financing of Small and Medium Enterprises. You can view the Survey Questionnaire.

The following tables present the key statistics from this survey.

Table 1: Request And Approval Rates And Average Amounts Authorized
Financing TypeRequest RateApproval Rate Note * referrer of Table 1Average Amount Authorized Note ** referrer of Table 1
Note * of Table 1: A request that received either full approval or partial approval was considered "approved".
Note ** of Table 1: Approved amounts were calculated using categorical answers in conjunction with adjusted mean or median values based on Statistics Canada's Survey on Financing of Small and Medium Enterprises 2007 data.
All Types16.1%80%$265,234
Debt Financing14.0%79%$238,468
Leasing1.0%76%$181,518
Equity Financing1.3%85%$251,231
Trade Credit1.2%82%$64,836
Table 2: Distribution Of Total Financing Authorized By Type Of Financing
Financing TypeShare
Note * of Table 2: Includes financing from government institutions (e.g., no interest loans)
Debt Financing79%
Leasing4%
Equity Financing7%
Trade Credit2%
Other Note * referrer of Table 28%
Table 3: Debt Financing (Long Term Vs. Short Term)
Type of Debt FinancingRequest RateApproval RateAverage Interest Rate Note *** referrer of Table 3% Collateral Required Note *** referrer of Table 3Average Amount Authorized
Note * of Table 3: Mortgages and term loans.
Note ** of Table 3: Lines of credit and credit cards.
Note *** of Table 3: Interest rates and collateral requirements are the weighted averages of related sub-categories.
Long Term Note * referrer of Table 38%78%5.5%67%$249,360
Short Term Note ** referrer of Table 39%78%6.9%47%$162,461
Total14%79%6.2%56%$238,468
Table 4: Debt Financing By Enterprise Characteristics
Number of EmployeesRequest RateApproval RateAverage Amount Authorized
Note * of Table 4: Primary includes the following: agriculture and fishing, forestry, and oil and mining.
1 to 410%70%$102,373
5 to 916%89%$157,607
10 to 1919%85%$324,016
20 to 10027%79%$571,423
Region
Atlantic11%99%$189,556
Quebec16%79%$173,621
Ontario15%77%$268,272
Manitoba-Saskatchewan13%87%$340,237
Alberta16%71%$292,454
British Columbia12%81%$206,119
Industry
Accommodation and Food16%81%$173,919
Construction13%99%$412,940
Manufacturing24%87%$202,527
Primary Note * referrer of Table 427%86%$401,380
Professional Services9%76%$200,379
Transportation/Warehousing20%79%$313,851
Wholesale and Retail15%70%$151,986
Age of Business
3 years old or younger30%44%$115,898
4 to 10 years old17%85%$202,153
More than 10 years old12%82%$275,702
Exportation
Exporter18%84%$281,103
Non-Exporter14%78%$221,286
Region
Rural17%93%$237,607
Urban14%75%$238,735
Table 5: Intended Use Of Debt Financing Note * referrer of Table 5
Intended Use% Firms That Sought Debt Financing
Note * of Table 5: The sum of the percentages will not equal 100% since firms often provided multiple answers.
Note ** of Table 5: Land, Vehicles, Computer Hardware/Software, Other Machinery.
Land and Buildings22%
Vehicles/Rolling Stock15%
Computer Hardware/Software6%
Other Machinery/Equipment19%
Fixed Assets Note ** referrer of Table 549%
Working/Operating Capital56%
Research & Development3%
Debt Consolidations10%
Refinancing Maturing Debt6%
Intangibles (e.g., training, goodwill)4%
Purchasing a Business3%
Table 6: Percentage Of Small Enterprises Re-Investing Capital In The Business
Region% Firms That Re-Invested
Note * of Table 6: Primary includes the following: agriculture and fishing, forestry, and oil and mining.
Atlantic60%
Quebec39%
Ontario48%
Manitoba-Saskatchewan59%
Alberta47%
British Columbia53%
Industry
Accommodation and Food48%
Construction46%
Manufacturing53%
Primary Note * referrer of Table 657%
Professional Services43%
Transportation/Warehousing50%
Wholesale and Retail49%