A new survey published by alternative lending platform Lendified this week finds that Canadian small businesses are in a bit of a rut.
The Lendified Index, published Wednesday (Oct. 14), found that 70 percent SMEs in the nation are either not growing or in decline. The data was outlined in the company’s first-ever Canadian Small Business Index.
Researchers found that 38 percent of small businesses saw no growth in the last year, and nearly one-third are either struggling or saw declining growth.
[bctt tweet=”38% of Canadian small businesses saw no growth in the last year.”]
Other findings include revelations regarding the top concerns among Canadian small businesses: acquiring new customers, maintaining existing customers and managing cash flow. About half of small businesses in the nation also reported relying on their own personal credit lines for their businesses’ cash flow management needs, and that the personal credit card is their preferred source of credit.
According to Lendified, that statistic reveals a significant gap of unmet cash flow needs for SMEs.
“As it relates to business financing, the polling results clearly highlight the fast pace at which small business people need to operate their business,” said Lenfidied CEO Troy Wright in a statement. “Their personal credit card is the most easily accessible — if expensive — way to maintain cash flow when operating at that speed. And in the case of a business loan from a bank, it can take up to eight weeks if a business qualifies.”
“That’s far too slow to meet the cash flow and management needs of a small business operator,” he added.
On a positive note, researchers found that 17 percent of SMEs in the nation are planning to expand their staff in the next year.
The research analyzed 350 businesses with fewer than 20 employees, with interviews conducted in September. Wright said that the index was launched to more adequately understand the needs of small businesses in Canada.
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