Business owners struggle with rising expenses and credit know-how amid shifting economic pressur
Rising costs and tightening credit conditions are squeezing Canadian entrepreneurs as they head into the final months of 2025, with nearly half naming the cost of goods as their top concern, according to new research from Equifax Canada.
The Equifax Canada Small and Medium Business Owners Survey, conducted by Leger, found that 43 percent of small and medium business owners cite the cost of goods as their biggest challenge entering Q4, while 35 percent worry about softening consumer demand.
Other significant concerns include supplier product availability, credit access from banks or suppliers, and the ability to repay government-backed loans, each cited by about a quarter of respondents.
Expenses are cutting deep into margins, with wages reported as the most impactful cost by 22 percent of business owners, followed by insurance, taxes, and supplies.
Bank fees, interest rates, and fuel also weigh heavily on balance sheets.
“Small businesses are being squeezed from every direction,” said Jeff Brown, head of Commercial Solutions at Equifax Canada.
Brown emphasized that when wages top the list of pain points and credit conditions remain tight, owners need a clear picture of their business credit profile to negotiate better terms, manage debt, and preserve cash flow.
Despite widespread recognition of the importance of credit, the survey reveals a gap in financial literacy and proactive credit management.
While 79 percent of respondents know a business can obtain its own credit report, only 59 percent know how to access it.
Furthermore, although 70 percent have checked their business credit report, only a quarter have done so in the past month, and nearly 20 percent have never checked it at all.
Younger owners under 35 are more engaged, with 94 percent having checked their reports, compared to 58 percent of those aged 35 and over.
Overall, 74 percent of business owners agree that their Business Credit Report affects their ability to access financing, and 73 percent say credit access is vital to achieving financial goals.
However, only 62 percent feel confident in their understanding of what influences their business credit score, highlighting a persistent financial literacy gap.
