Bank loan approval rate for small Canadian businesses is roughly 80 percent, says Hughes
The idea that banks are prejudiced against Canadian small businesses has become a popular notion over the past few months. According to CEO of the Canadian Bankers Association Nancy Hughes, though, banks don't have any issues with small businesses in particular. Rather, they judge a business by its risk, not its size, says Hughes.
Speaking to the Montreal Gazette, Hughes says that the bank loan approval rate for small businesses is currently 80 percent - consistent with rates from 10 years ago. Approval rate is determined by the risk involved to the lender, not a business' size. She insists that SMEs have as much access to credit as larger firms with the same risk profile.
Further, she says that a majority of Canadian small business owners have reported that their bank worked with them to survive the downturn. According to a survey conducted by the Canadian Bankers Association, 90 percent of SMEs reported they received bank funding.
According to a recent report from the Canadian Federation of Independent Businesses, Credit Union is the best bank for small Canadian business owners to get funding from.
