One in four business owners have been required to personally guarantee business financing with their own home and assets; younger entrepreneurs show greater reliance on credit as a financial safety net
TORONTO, Oct. 22, 2026 (GLOBE NEWSWIRE) — The financial pressures facing Canadian small businesses are extending beyond the business itself, with some owners relying on personal credit and assets to support their companies, according to a new Equifax Canada survey.
One in four surveyed business owners (26 per cent) say they have been required to provide a personal guarantee to obtain business financing, potentially putting personal assets such as savings or a family home on the line to help keep their business afloat. Separately, one in five surveyed owners (21 per cent) say they have applied for or opened a personal line of credit as a financial safety net for their business during the past two years.
Customers, costs and cash flow add to the pressure
The survey found that finding or retaining customers is the most cited challenge facing small businesses, identified by 53 per cent of owners surveyed. Rising operating costs followed closely with 48 per cent of owners citing this as their top challenge.
Other top challenges identified by those surveyed include: managing workload, stress or mental health (42 per cent), competition (38 per cent), and a lack of capital or cash flow (30 per cent).
“Running a small business has always involved financial risk, but these findings highlight how closely business and personal finances can become connected,” said Jeff Brown, Head of Commercial Solutions at Equifax Canada.
Business principals stretched thin, rely on personal credit
According to Equifax data, business principals are business owners who disproportionately depend on personal credit to fund and run their businesses. They rely heavily on personal credit, carrying higher credit utilization (31 per cent higher than consumers), higher balances (105 per cent higher balance on their personal credit), and managing 44 per cent more trades compared to the average consumer.
In addition, business owners are also demonstrating increased use of certain credit products, with high percentages of use for both Revolving credit and HELOC (Home Equity Line of Credit) usage. “This data clearly demonstrates a disproportionate dependence on personal credit to secure timely funding and sustain their operations. To put this in perspective, if businesses are relying on HELOCs to sustain operations – and they are doing this amid challenging real estate market fluctuations – this could put them in a difficult situation. When owners are using personal credit or pledging personal assets to support their business, the financial health of the company can have implications well beyond the business itself, ” notes Brown.
Younger entrepreneurs relying on credit
Among younger business owners surveyed (those aged 18 to 34 years old), 54 per cent say they have been required to provide a personal guarantee, compared with just 15 per cent of owners aged 55 and older.
The same proportion of younger owners — 54 per cent — say they have applied for or opened a personal or business line of credit as a financial safety net for their business during the past two years, compared with 15 per cent among owners aged 55 and older.
Among the smaller group of surveyed owners who have used a personal line of credit or provided a personal guarantee for their business, 45 per cent report that doing so has affected their personal finances. Reported impacts include reduced personal credit availability (20 per cent), greater difficulty qualifying for a car loan (20 per cent), difficulty obtaining other personal credit (15 per cent) and difficulty qualifying for a mortgage (13 per cent).
“The findings suggest that younger business owners are managing several pressures simultaneously: maintaining customers and revenue, absorbing higher costs and, in some cases, finding additional financing to bridge cash-flow gaps,” notes Brown.
Business credit awareness remains uneven
Despite the financial pressures facing business owners, many are not actively monitoring their business credit profile.
Just over half or 54 per cent of surveyed owners say they have checked their business credit report at least once, including 34 per cent who have done so within the past 12 months. Fifteen per cent say they do not know how to access their business credit report, while 10 per cent were unaware their business had a separate credit report.
At the same time, there is considerable interest in making business credit information easier to access. Nearly two-thirds (64 per cent) of business owners surveyed say they would be interested in being able to monitor their business credit score directly through their bank’s commercial banking platform. Among surveyed owners who have checked their business credit report within the past year, interest in monitoring their business credit score through their bank rises to 86 per cent.
Younger owners also show greater interest in access to business credit information. Nearly three-quarters (74 per cent) of surveyed owners under age 55 say they would be interested in accessing their business credit score through their bank, compared with 52 per cent of those aged 55 and older.
Last month Equifax Canada reported on the state of businesses with its latest Commercial Credit Trends which also showed that there is a divide in how Canadian businesses are managing their financial obligations, with businesses making difficult choices about where their cash goes.
“You cannot manage what you cannot see,” said Brown. “Understanding a company’s commercial credit profile can help business owners better understand how lenders may view their business and the financing options that may be available to them. Making that information easier to access could help owners make more informed financial decisions.”
Equifax is committed to partnering with small business lenders to support the growth and long-term health of Canadian small businesses, empowering Canada’s financial ecosystem with data and insights to move the Canadian economy forward, including the Equifax Business Credit Report which provides a vital financial business snapshot.
* An online survey was conducted via Leger’s LEO panel from September 21 to September 25, 2026, among n=107 Canadian business owners, co-owners, and operators aged 18 and older. For comparison purposes, a probability sample of n=107 respondents yields a margin of error no greater than ±9.5%, 19 times out of 20.
About Equifax
At Equifax, we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 15,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.ca.
Contact:
Andrew Findlater
SELECT Public Relations
afindlater@selectpr.ca
(647) 444-1197
Angie Andich
Equifax Canada Media Relations
MediaRelationsCanada@equifax.com
