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The Credit Conditions Survey was conducted between January and March of 2014. The questions were fact-based and focused on financing sought by small enterprises (1 to 99 employees) during the 2013 calendar year.
A total of 2,545 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 1.9% for questions addressed to all respondents. R.A. Malatest & Associates administered the survey for Industry Canada.
The following tables present the key statistics from this survey.
| Type of Financing | Request Rate | Approval Rate* | Average Amount Authorized |
|---|---|---|---|
| * A request that received either full approval or partial approval was considered "approved". | |||
| Debt Financing | 30 | 85 | $280,000 |
| Leasing | 11 | 95 | - |
| Equity Financing | 4 | - | - |
| Trade Credit | 10 | - | - |
| Type of Debt | Request Rate | Approval Rate* | Average Interest Rate | % Collateral Required | Average Amount Authorized |
|---|---|---|---|---|---|
| * A request that received either full approval or partial approval was considered "approved". ** Non-residential mortgages and term loans *** Business lines of credit and credit cards | |||||
| Long Term** | 14 | 84 | 5.0 | 74 | $400,000 |
| Short Term*** | 23 | 84 | 5.9 | 56 | $220,000 |
| Overall | 30 | 84 | 5.6 | 60 | $280,000 |
| Enterprise Characteristics | Request Rate | Approval Rate* | Average Amount Authorized |
|---|---|---|---|
| * A request that received either full approval or partial approval was considered "approved". ** A firm that developed or introduced a product, process, organizational or marketing innovation in the 2013 calendar year was considered an "innovator". | |||
| Number of Employees | |||
| 1 to 4 | 24 | 81 | $120,000 |
| 5 to 9 | 32 | 83 | $180,000 |
| 10 to 19 | 35 | 86 | $260,000 |
| 20 to 99 | 43 | 93 | $680,000 |
| Region | |||
| Atlantic | 28 | 89 | $960,000 |
| Quebec | 27 | 87 | $350,000 |
| Ontario | 29 | 80 | $140,000 |
| Manitoba-Saskatchewan | 28 | 90 | $270,000 |
| Alberta | 36 | 85 | $400,000 |
| British Columbia & Territories | 36 | 86 | $350,000 |
| Industry | |||
| Accommodation and Food | 28 | 75 | $170,000 |
| Construction | 40 | 88 | $230,000 |
| Manufacturing | 37 | 89 | $250,000 |
| Agriculture and Fishing, Forestry, and Oil and Mining | 42 | 93 | $450,000 |
| Professional Services | 24 | 89 | $240,000 |
| Transportation/Warehousing | 34 | 80 | $350,000 |
| Retail Trade | 28 | 83 | $190,000 |
| Wholesale Trade | 32 | 90 | $330,000 |
| Retail and Wholesale | 31 | 83 | $260,000 |
| Age of Business | |||
| 3 years old or younger | 40 | 83 | $160,000 |
| 4 to 10 years old | 35 | 82 | $150,000 |
| More than 10 years old | 29 | 86 | $330,000 |
| Exporting Activities | |||
| Exporter | 36 | 90 | $310,000 |
| Non-Exporter | 30 | 84 | $270,000 |
| Innovation | |||
| Product | 42 | 82 | $240,000 |
| Process | 38 | 80 | $270,000 |
| Organizational | 46 | 83 | $450,000 |
| Marketing | 38 | 81 | $200,000 |
| Innovator** | 38 | 86 | $270,000 |
| Non-Innovator | 21 | 83 | $270,000 |
| Gender of Majority Owner | |||
| Male | 32 | 87 | $350,000 |
| Female | 23 | 86 | $60,000 |
| Jointly Owned | 31 | 77 | $190,000 |
| Education Level of Majority Owner | |||
| Less than high school | 32 | 91 | $140,000 |
| High school diploma | 31 | 79 | $190,000 |
| College/Cegep/Trade school diploma | 31 | 86 | $220,000 |
| Bachelor Degree | 30 | 85 | $350,000 |
| Masters Degree or above | 26 | 91 | $400,000 |
| Experience Level of Majority Owner | |||
| 5 years or less | 37 | 77 | $350,000 |
| 6 to 10 years | 36 | 85 | $150,000 |
| More than 10 years | 29 | 85 | $300,000 |
| Age of Majority Owner | |||
| Younger than 40 years old | 36 | 87 | $220,000 |
| 40 to 49 years old | 33 | 80 | $190,000 |
| 50 to 64 years old | 29 | 89 | $350,000 |
| 65 years old or older | 24 | 78 | $230,000 |
| Reason | % |
|---|---|
| Financing not needed | 86 |
| Unaware of financing sources | 3 |
| Thought request would be turned down | 3 |
| Applying for financing too difficult | 2 |
| Cost of financing too high | 2 |
| Other reason | 3 |
| Intended Use | % |
|---|---|
| Fixed asset | 40 |
| Working/Operating capital | 49 |
| Research and development | 2 |
| Debt consolidations | 5 |
| Enter a new market | 3 |
| Other use | 2 |
| Destination | % |
|---|---|
| Local municipality or region | 75 |
| Rest of province/territory | 16 |
| Rest of Canada | 5 |
| Rest of the world | 4 |