According to a recent Amex survey, 60% of Canadian Small and Medium Enterprises (SMEs) believe that with their current cash flow, they can’t maintain business for more than six months
In a first for American Express outside of the United States, the company is announcing the international expansion of its existing business financing product suite with the launch of Business Loans in Canada and Australia. American Express Business Loans, in partnership with ODX, will offer unsecured business loans of between $5,000 and $250,000 CAD to a select group of its small and medium enterprise customers in Canada. This move further showcases American Express’ continued commitment to backing Canadian businesses by providing them with the access to the capital they need to grow and recover from the unprecedented challenges of the COVID-19 pandemic.
- Only 40% of SMEs believe that with their current cash flow they can maintain operations for more than six months.
- However, despite considerable challenges, many feel optimistic about the 2021 outlook, with only 12% feeling pessimistic about what the year holds for their business.
- While many SME owners have ideas for growth and feel inspired to reinvest in themselves and their business, they see access to capital from financial lenders as an essential factor in being able to do so.
- One-third of Canadian SMEs have had to take extraordinary steps, putting up personal assets like their homes and businesses to survive.
- 43% made personal sacrifices to ensure their businesses stay successful, including forgoing personal purchases and vacations.
- When asked when they last treated themselves to a special purchase, only 35% said that they’ve treated themselves during the COVID-19 pandemic.
- Many Canadian SMEs are looking to access business loans to ensure survival (31%), expand (30%), innovate (18%), or cover essential costs (15%). However, many have identified roadblocks in the usual loan process.
- In fact, while 2 of 5 of SME owners sought loans, only 1 in 5 described the process as hassle free.