For decades, BPF Solutions have been helping small and medium-sized businesses across Canada. We are dedicated to supporting you and your business during the pandemic crisis and the recovery of the economy. We know that this is a difficult time. The information and support you need to run your business change rapidly, and it can be hard to keep track and make sense of it all.
A recent survey conducted by CFIB revealed that 1 in 6 business owners or about 181,000 Canadian small business owners are considering closing down their doors forever as a result of the pandemic. This is in addition to the 58,000 businesses that have closed already. Many of these businesses have a dire need for capital and financing solutions.
With a recent surge in the supply of COVID-19 vaccines and a decrease in the number of new cases of COVID and every Canadian jurisdiction is making plans for a gradual reopening. At the same time, the Big Six banks blew past earnings expectations in a big way. An improving credit picture was the story, with banks booking less money than expected in new provisions for credit losses and some banks releasing modest sums from previously booked loan-loss reserves.
So, what does this mean to businesses across Canada?
While a wave of pandemic-related loan losses has largely failed to materialize, the banks haven’t seen much lending growth up until now. Canada’s hot housing market has bolstered mortgage businesses, but the country’s slower vaccination rollout and prolonged lockdowns have held back business loans.
As the economy comes back in the fall 2021 and into next year, we are expecting to see more business loan growth over the balance of this year and into next year. While mortgages have been strong during the pandemic business loans have been held back to minimize the risk.
At the start of the pandemic lenders set aside record amounts of capital to absorb defaults that they were expecting to see. However, this wave of pandemic-related loan losses has largely failed to materialize, leaving banks with additional capital available to lend as the economy opens up.
This gives you an opportunity to assess short- and long-term capital requirements for your business and seek out expert advice on how you can benefit from potential business loan injections for your business.
Get a FREE one-on-one expert to advice from our business consultants and advisors. Let BPF Solutions help you with financing solutions for your business.