Alternate Format
PDF Version (86 KB, 4 pages)
Excel Version (44 KB)
The Credit Conditions Survey was conducted between January and March of 2016. The questions were fact-based and focused on financing sought by small enterprises (1 to 99 employees) during the 2015 calendar year.
A total of 2,090 small businesses completed the questionnaire, which included 24 questions. This is the second largest Canadian survey on small business financing. The margin of error is 2.1% for questions addressed to all respondents. R.A. Malatest & Associates administered the survey for Innovation, Science and Economic Development Canada.
The following tables present the key statistics from this survey.
Type of Financing | Request Rate | Approval Rate* | Average Amount Authorized | Amount authorized-to-requested ratio |
---|---|---|---|---|
* A request that received either full approval or partial approval was considered "approved". | ||||
Debt Financing | 23 | 88 | $350,000 | 90 |
Leasing | 8 | 94 | - | 93 |
Equity Financing | 2 | - | - | - |
Trade Credit | 6 | - | - | - |
Type of Debt | Request Rate | Approval Rate* | Average Interest Rate | % Collateral Required | Average Amount Authorized | Amount authorized-to-requested ratio |
---|---|---|---|---|---|---|
* 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** | 11 | 89 | 5.0 | 92 | $530,000 | 90 |
Short Term*** | 17 | 84 | 5.3 | 78 | $260,000 | 88 |
Overall | 23 | 88 | 5.1 | 82 | $350,000 | 90 |
Enterprise Characteristics | Request Rate | Approval Rate* | Average Amount Authorized | Amount authorized-to-requested ratio |
---|---|---|---|---|
* 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 2015 calendar year was considered an "innovator". | ||||
Number of Employees | ||||
1 to 4 employees | 21 | 83 | $90,000 | 88 |
5 to 9 employees | 21 | 89 | $480,000 | 88 |
10 to 19 employees | 25 | 89 | $680,000 | 93 |
20 to 99 employees | 33 | 97 | $550,000 | 97 |
Region | ||||
Atlantic | 21 | 94 | $110,000 | 96 |
Quebec | 28 | 86 | $440,000 | 88 |
Ontario | 19 | 89 | $280,000 | 91 |
Manitoba-Saskatchewan | 24 | 97 | $230,000 | 89 |
Alberta | 26 | 81 | $390,000 | 90 |
British Columbia & Territories | 22 | 91 | $440,000 | 94 |
Industry | ||||
Accommodation and Food | 16 | 79 | $140,000 | 82 |
Construction | 23 | 96 | $160,000 | 94 |
Manufacturing | 24 | 83 | $270,000 | 90 |
Agriculture and Fishing, Forestry, and Oil and Mining | 24 | 85 | $780,000 | 98 |
Professional Services | 23 | 93 | $180,000 | 97 |
Transportation/Warehousing | 26 | 89 | $150,000 | 92 |
Retail and Wholesale | 24 | 85 | $240,000 | 82 |
Age of Business | ||||
3 years old or younger | 31 | 76 | $260,000 | 81 |
4 to 10 years old | 26 | 84 | $370,000 | 91 |
More than 10 years old | 21 | 91 | $360,000 | 92 |
Exporting Activities | ||||
Exporter | 27 | 90 | $220,000 | 89 |
Non-exporter | 23 | 87 | $360,000 | 91 |
Innovation | ||||
Product | 30 | 84 | $350,000 | 86 |
Process | 32 | 85 | $200,000 | 85 |
Organizational | 36 | 87 | $390,000 | 86 |
Marketing | 29 | 81 | $190,000 | 85 |
Innovator** | 29 | 85 | $340,000 | 88 |
Non-innovator | 17 | 93 | $370,000 | 95 |
Gender of Majority Owner | ||||
Male | 24 | 88 | $420,000 | 89 |
Female | 20 | 87 | $130,000 | 96 |
Jointly Owned | 21 | 95 | $270,000 | 90 |
Education Level of Majority Owner | ||||
Less than high school | 27 | 88 | $240,000 | 93 |
High school diploma | 21 | 88 | $650,000 | 89 |
College/Cegep/Trade school diploma | 27 | 88 | $300,000 | 91 |
Bachelor Degree | 21 | 85 | $240,000 | 88 |
Masters Degree or above | 22 | 91 | $340,000 | 94 |
Experience Level of Majority Owner | ||||
< 5 years | 34 | 84 | $60,000 | 95 |
5 to 10 years | 26 | 88 | $220,000 | 89 |
> 10 years | 23 | 88 | $410,000 | 90 |
Age of Majority Owner | ||||
Younger than 40 years old | 25 | 82 | $150,000 | 88 |
40 to 49 years old | 26 | 89 | $380,000 | 92 |
50 to 64 years old | 21 | 90 | $340,000 | 91 |
65 years old or older | 19 | 87 | $700,000 | 89 |
Reason | % |
---|---|
Financing not needed | 89 |
Unaware of financing sources | 2 |
Thought request would be turned down | 3 |
Applying for financing too difficult | 2 |
Cost of financing too high | 2 |
Other reason | 2 |
Intended Use | % |
---|---|
Fixed asset | 45 |
Working/Operating capital | 41 |
Research and development | 2 |
Debt consolidations | 6 |
Enter a new market | 3 |
Other use | 3 |
Destination | % |
---|---|
Local municipality or region | 80 |
Rest of province/territory | 13 |
Rest of Canada | 4 |
Rest of the world | 3 |