Commercial borrowing by small and medium-sized businesses in Canada jumped in the final quarter of last year to hit a record high. The PayNet Canadian Business Lending Index (CBLI), which measures the volume of new commercial loans and leases to small businesses reached 223 in Q4 2013 and increased 7% quarter over quarter from a restated 209 in Q3 2013.

"Capital investment in Q4 2013 was once again solid and indicates that the Canadian economy will continue to grow over the next 6 months," notes Anthony Zambon, Director, PayNet Canada.

The CFLA Business Credit Delinquency (BCD) moderate loan delinquencies are hovering at 1.54% (vs. 1.47% in the U.S.)  This is up 3 points from the last report and is in line with an increase in risk taking.  The CFLA BCD severe loan delinquencies fell to 0.25% (vs. 0.29% in the U.S.) since last quarter.

"The CFLA BCD Trends measure small business financial stress and provide an early warning of future insolvency. The balance sheets of these small and medium-sized businesses are in very good shape, so that is a very favorable sign for the Canadian economy.  When Canadian businesses expand their capital expenditures, they are planning for lasting growth prospects," notes Zambon.