Canada: Small business lending increases during February

Canadian small business lending increased slightly during February, according to new data released in April. The PayNet Small Business Lending index crept up to 112.0 in February, from 110.2 in January.

Meanwhile, lending to medium-sized business rose from 187.5 to 190.2. However, these figures are considerably lower compared to this time last year, with lending to small and medium businesses down 5% and 18% year-on-year, respectively.

Although lending has been increasing, the number of small businesses that were delinquent by more than 30 days jumped up to 0.89 percent from 0.81 percent during January, the first time that the delinquency rate has increased in more since January 2017.

Despite these figures, PayNet President Bill Phelan noted that business financial health remains strong.

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