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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 |