Equifax Reports Rising Small Business Debt Amid Improved Credit Activity
Equifax Inc. reports a 19.6% year-over-year increase in average business debt to $30,855 in Q3 2025, with new firms seeing an 83% surge. The Canadian Small Business Health Index rose by 2.83%, indicating improved business sentiment. However, the manufacturing component declined by 11.2% to 80.2%. Delinquency rates in the financial and insurance sectors increased by 17.5%. Rising raw material costs and elevated debt levels continue to challenge small businesses.
Equifax Inc. has released its Q3 2025 Quarterly Business Credit Trends, reporting signs of economic stabilization in Canada supported by easing inflation and recent interest rate cuts. The average business debt increased by 19.6% year-over-year to $30,855, with newly established firms seeing an 83% surge in balances. Industrial trade originations rose by 26%. The Canadian Small Business Health Index, a joint initiative between Equifax Canada and the Business Development Bank of Canada, increased by 2.83% compared to the previous quarter, reflecting improved business sentiment. The manufacturing sector showed a significant increase in credit demand, attributed to rising raw material costs, including a 13.8% jump in gold and metal ore prices and a 1.6% month-over-month rise in the Raw Materials Price Index. The Industrial Product Price Index increased by 6.0% year-over-year. Credit demand inquiries in the sector grew by 8.83% year-over-year. However, the manufacturing component of the Small Business Health Index declined to 80.2% in Q3, down by 11.2% from last year. Delinquency rates in the financial and insurance industry for accounts 60+ days past due increased by 17.5% year-over-year. Elevated debt levels and sector-specific challenges continue to affect small businesses despite improved sentiment and increased credit activity. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Equifax Inc. published the original content used to generate this news brief via GlobeNewswire (Ref. ID: GNW9595302-en) on December 02, 2025, and is solely responsible for the information contained therein. © Copyright 2025 - Public Technologies (PUBT)
