Equifax Inc. has released its Q1 2025 Business Credit Trends and Insights Report, revealing growing financial pressures on Canadian businesses. The Canadian Small Business Health Index, which measures business credit health and sentiment, fell to 99.3, marking a 1.5 percent decline from the previous quarter. This decrease indicates a loss of momentum, despite the index still being slightly above its level from a year ago. The report highlights a 14.6 percent year-over-year increase in business delinquencies, with over 309,000 businesses, or 11.3 percent of credit-active businesses, missing at least one credit payment in Q1 2025. Credit demand has also slowed, with a six percent decline in businesses applying for new credit compared to the same period in 2024. Key sectors like Accommodation & Food Services and Retail are particularly affected, experiencing missed payment rates of 16.9 percent and 13.2 percent, respectively. Equifax data suggests these sectors are facing challenges due to weak consumer spending, rising operating costs, and growing household debt levels.