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Equifax Canada data shows average debt per business up 7.3 per cent as financial delinquencies reach a multi-year high; pressure builds among higher-risk businesses
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Equifax Canada Market Pulse — Q2 2026 Quarterly Business Credit Trends Release
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TORONTO, Sept. 14, 2026 (GLOBE NEWSWIRE) — Canadian businesses are carrying more debt and showing increasing signs of payment stress with banks and lenders, according to new Equifax Canada Q2 2026 Commercial Credit Trends data. In addition recent changes to trade tariffs are creating additional uncertainty for organizations managing elevated debt and cash flow challenges.
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Average commercial debt per business rose 7.3 per cent year-over-year to $30,581 in the second quarter, while the 60+ day delinquency rate on financial credit products reached its highest level since 2019 at 4.0 per cent, up 19.7 per cent year-over-year. “The data continues to show an important divide in how Canadian businesses are managing their financial obligations,” said Jeff Brown, Head of Commercial Solutions at Equifax Canada. “Businesses appear to be doing a better job of staying current with suppliers they depend on to keep operating, all the while payment pressure with banks and lenders continues to build. This suggests many businesses are still making difficult choices about where their cash goes.”
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Trade tariffs bring uncertainty for key industries
Recent changes to trade tariffs are affecting selected Canadian exports and creating additional pressure for businesses and sectors already managing elevated debt and cash-flow challenges. Business restructuring proposals surged 30.32 per cent year-over-year. At the same time, late payments to suppliers continued to decrease. The 60+ day delinquency rate for industrial trade credit fell 24.4 per cent year-over-year to 4.26 per cent. “This is a period of significant economic and market uncertainty. Equifax Canada is committed to helping lenders make smart lending decisions so that businesses will have the access to capital they need to keep our economy strong,” noted Brown.
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Debt growth increasingly concentrated among higher-risk businesses
The increase in business debt is not being felt evenly across the market. High-risk businesses (which are those with the Equifax Business Failure Risk Score between 1026 and 1060) carried the largest average debt load, at $125,517 per business, up 48.2 per cent year-over-year. Businesses in the highest-risk tier saw average balances more than double, increasing 103.1 per cent to $42,986.
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Debt also grew sharply among Canada’s youngest businesses. Companies 12 months old or younger, who often have higher start-up costs, recorded a 71.7 per cent year-over-year increase in average debt balances, reaching $48,173.
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“These are the businesses we need to watch closely,” said Brown. “Rising debt is not necessarily a sign of financial distress on its own, particularly for a young or growing business. The concern is when rapidly increasing balances are combined with greater difficulty staying current on financial obligations.”
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Businesses also continued to shift away from revolving credit. Average line-of-credit balances declined 14.6 per cent year-over-year to $17,570, while average commercial credit card balances fell 8.9 per cent to $5,412. In contrast, average installment loan balances increased 6.9 per cent to $131,107 which may suggest that businesses are seeking out other debt consolidation solutions.