Posthaste: 'Using a credit card to keep the lights on' — New report shows 'alarming' shift in business borrowing

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Posthaste: 'Using a credit card to keep the lights on': New report shows 'alarming' shift in business borrowing

“The decline in instalment loans and the shift towards credit card usage could be impeding their growth potential and hindering their ability to make larger investments.”Brown said late delinquencies in industrial trades have risen by 9 per cent within a 60-day window, annually, and are now nearing pre-pandemic levels.

“This will challenge the financial health of businesses and has the potential for ripple effects on the overall economy.” “This is a concerning trend. Given the likelihood of more interest rate hikes, it really raises concerns about the overall economic outlook for business owners in Canada,” said Brown.Canadians on average are spending 21.5 per cent more each month on their credit cards compared to before the pandemic, the agency said in its

 

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