PayNet reported commercial borrowing by small- and medium-sized businesses in Canada rose slightly in the first quarter. Canadian Business Lending Index rose to 206 in the first quarter from 204 in the fourth quarter. The positive in this number is the quarterly increase and the lower decreases.
According to William Phelan, president of PayNet, which tracks commercial borrowing by millions of small and medium-sized businesses in Canada shows this growth is due to more discretionary money in the hands of consumers as a result of the lower energy prices such as gasoline to fuel their cars and natural gas to heat homes.
PayNet’s CFLA Business Credit Delinquency Trends Index captured this weakness in the first quarter, with the index jumping to 2.73% in March, and the average delinquency rising nearly 0.6%-points between the end of the fourth quarter of 2014 and the end of the last quarter.
According to PayNet:
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