Canadian small and medium-sized business owners are feeling the strain of rising costs, slowing demand and uncertainty about managing credit, according to new research from Equifax Canada.
The Equifax Canada Small and Medium Business Owners Survey found that 43 per cent of respondents cited the cost of goods as their top concern heading into the final quarter of 2025. Another 35 per cent pointed to declining consumer demand, while about one in four named issues such as supplier product availability (26 per cent), credit availability from banks or suppliers (25 per cent) and the ability to repay government-backed loans (25 per cent).
Wages were ranked as the most significant expense for 22 per cent of those surveyed, followed by insurance, taxes and supplies, each at 13 per cent. Bank fees, interest rates and fuel costs were also identified as major pressures.
“Small businesses are being squeezed from every direction,” said Jeff Brown, head of commercial solutions at Equifax Canada.
“When wages top the list of pain points and credit conditions remain tight, owners need a crystal-clear picture of their business credit profile to negotiate better terms, manage debt, and preserve cash flow.”
Despite widespread financial pressure, many business owners reported uncertainty about managing credit. While 79 per cent of respondents said they know a business can obtain its own credit report, only 59 per cent knew how to access it.
“Most business owners believe credit matters — three-quarters say their credit report impacts their ability to borrow — yet many don’t know what’s driving their score,” said Brown.
The survey showed that 70 per cent of business owners have checked their credit report, but only 25 per cent have done so within the past month. Nearly 20 per cent said they have never checked their report. Engagement levels varied by age, with 94 per cent of owners under 35 saying they had reviewed their reports, compared to 58 per cent of those aged 35 and older.
Overall, 74 per cent of small and medium-sized business owners agreed that their credit report affects their ability to obtain financing, and 73 per cent said credit access is essential for achieving financial goals. However, only 62 per cent expressed confidence in their understanding of what influences their credit score.
“The gap between awareness and action is what stands out. The goal of Equifax is to bridge that gap with education and access to valuable insights for business owners,” Brown added.
Equifax said its Business Credit Report compiles information from banks, industry groups, collection agencies and corporate registries to help business owners make faster and more informed decisions. The company has also developed a How to Check Your Business Credit Report Guide to assist entrepreneurs.
The survey was conducted online by Leger between Oct. 3 and Oct. 6, 2025, among 100 small and medium-sized business owners across Canada.
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