Businesses’ changing credit usage a worrying trend: Equifax

TORONTO –

Equifax Canada says new knowledge suggests a major shift in credit score utilization amongst companies within the first quarter of 2023.

The company says the most recent numbers spotlight rising monetary stress within the industrial and monetary trades, and forged doubt on the soundness of the Canadian economic system.

Equifax says companies’ complete excellent stability on bank-issued instalment loans declined by 2.4 per cent from the primary quarter final 12 months.

However, bank card balances grew by 15 per cent and features of credit score elevated by 11 per cent.

Equifax Canada’s head of business options Jeff Brown says in a press launch that the decline in installment loans and the shift in direction of bank card utilization could possibly be impeding companies’ development potential and hindering their capacity to make bigger investments.

The first quarter additionally noticed a slowdown in new business openings, which Equifax says is a regarding pattern.

This report by The Canadian Press was first printed June 20, 2023.