Canadian Small Business Investment Increases in November

PayNet, the leading provider of small business credit data and analysis, reports that the PayNet Canadian Small Business Lending Index (CSBLI) increased 1 percent from 115.3 in October 2017 to 116.9 in November 2017. Compared to the same month one year ago, the CSBLI is down 1 percent.

“Following six straight months of declining originations, the uptick in Canadian small business borrowing in November is an early sign that small businesses are willing to increase borrowing and investment levels as they enter 2018,” said PayNet President William Phelan. “Small business originations in 2017 has mirrored overall trends in the economy – robust in the first half followed by a weak third quarter.”

Year-over-year, the strongest individual sectors were Construction (17 percent), Retail (13 percent), and Transportation (27 percent). While the consumer outlook remains solid heading into 2018, the expectation of a slowdown in housing starts in part due to the introduction of stricter mortgage underwriting standards in 2018, calls into question the sustainability of continued originations growth from the construction sector. One notable exception to the domestic strength story has been Accommodation and Food Services, which showed a decrease of 12 percent. Agriculture (-3 percent) and Manufacturing (-10 percent) also lagged. Regionally, conditions in most provinces and regions remain in a good position heading into 2018. Originations trends have been positive in every province with the exception of Saskatchewan in recent months.

Strong growth of the Canadian economy in 2017 is also reflected in delinquency readings. The PayNet Canadian Small Business Delinquency Index (CSBDI) showed that financial health continues to improve for Canadian small businesses as loans 30 days past due decreased again from 0.88 percent in October 2017 to 0.86 percent in November 2017. Compared to November 2016, delinquency decreased from 1.05 percent, marking the eighth consecutive year-over-year decrease after 25 months of year-over-year increases. Compared to October 2017, Agriculture and Accommodation & Food decreased by 22 and 5 basis points, respectively. Manufacturing, however, continues to show signs of stress, with delinquency again increasing by 8 basis points. Regionally, delinquency rates on loans 30 days past due have declined in every province over the last six months.

“A deep dive into the report shows small businesses can be a growth leader for the economy,” added Phelan. “Their investment and strong health will help GDP accelerate in 2018.”

About PayNet, Inc. Canada

PayNet, Inc. Canada is the premier provider of risk management tools and market insight to the commercial credit industry, collecting real-time loan information from leading Canadian lenders and turning it into actionable intelligence. The company's proprietary database -- updated weekly -- is a growing collection of commercial loans and leases, worth over $92 billion. Using state-of-the-art analytics, PayNet converts raw data into real-time market intelligence and predictive information that subscribing lenders use to manage risk, lower operating costs, originate more loans and improve their business strategy. For more information visit and