Canadian entrepreneurs are entering the final quarter of 2025 under mounting financial pressure, citing rising costs, slowing demand and uncertainty around credit management, according to new research from Equifax Canada.
The Equifax Canada Small and Medium Business Owners Survey found that 43 per cent of respondents identified the cost of goods as their biggest concern for Q4. Another 35 per cent pointed to weak consumer demand, while roughly one in four cited challenges such as supplier product availability (26 per cent), credit access from banks or suppliers (25 per cent) and repayment of government-backed loans (25 per cent).
Wages ranked as the most significant expense for 22 per cent of business owners, followed by insurance, taxes and supplies at 13 per cent each. Bank fees, interest rates and fuel also weighed heavily on budgets.
“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.”
The survey revealed a gap between awareness and action on credit management. While 79 per cent of respondents know a business can obtain its own credit report, only 59 per cent know how to access it. Three-quarters believe their credit report affects borrowing ability, yet many lack confidence in understanding what drives their score.
Although 70 per cent of owners have checked their business credit report, only 25 per cent have done so in the past month, and nearly 20 per cent have never checked it. Younger owners under 35 are more engaged, with 94 per cent saying they have checked their reports compared to 58 per cent of those aged 35 and older.
Overall, 74 per cent agree that their credit report impacts financing access, and 73 per cent say credit is vital to achieving financial goals. Still, only 62 per cent feel confident in their understanding of credit score factors.
“The gap between awareness and action is what stands out,” Brown said. “The goal of Equifax is to bridge that gap with education and access to valuable insights for business owners.”
Image credit: Depositphotos.com
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