Loan defaults are increasing
The Canadian Press – March 19, 2024 / 5:54 am | History: 477746
Photo: The Canadian Press
A new report suggests loan defaults among Canadian companies are on the rise. Equifax logos are displayed on paper in Toronto on October 17, 2019. THE CANADIAN PRESS/Christopher Katsarov
A new report suggests loan defaults among Canadian companies are on the rise.
Equifax Canada’s latest quarterly business credit trends report shows that the number of businesses that missed a payment on a credit product increased by 14.3 per cent between the fourth quarter of 2023 and the fourth quarter of 2022.
The report found a significant increase in installment loan delinquencies, with early-stage delinquencies increasing by 12.5 percent and late-stage delinquencies increasing by 16.3 percent year-on-year.
Delinquencies on business credit cards and lines of credit rose 1.3 percent year-over-year.
The new report complements recent data from the Office of the Superintendent of Bankruptcy showing a 41.4 percent increase in corporate bankruptcies in 2023 compared to 2022.
Equifax says Canadian businesses are grappling with the impact of higher interest rates, a slowdown in consumer spending and pandemic-related loan repayments.
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