Businesses are feeling the pinch and are struggling to pay the bills as Canadians pull back on spending due to the ongoing economic uncertainty.

More than 286,000 Canadian businesses missed at least one credit payment in the second quarter of 2025, up 5.6 per cent compared to last year, according to the

Equifax Inc.

’s Canada Business Credit Trends Report released on Tuesday.

“Small businesses are navigating a complex environment,” Jeff Brown, head of commercial solutions at Equifax Canada, said in a release. “We’re seeing sectors under stress, particularly those that represent industries tied to international trade and discretionary spending, while other businesses are holding steady or even improving. It’s a reminder that depending on your industry, the circumstances seem to be quite different across sectors.”

Overall, the Canadian Small Business Health Index, a quarterly measure of health among small and mid-sized businesses, declined by 1.6 per cent in the quarter, though lower inflation and interest rate cuts have offered some relief, the report said.

The businesses hit hardest in the second quarter were those that rely on consumers for success, with the average credit card spend falling 0.4 per cent as delinquency levels in the accommodation and food services industries rose 29.5 per cent. Delinquencies in the retail trade climbed 13.3 per cent.

“Despite headline inflation easing, the cost of essentials like groceries and rent continued to climb, impacting household budgets, which could potentially leave less room for discretionary spending,” Brown said. “This shift in consumer spending toward essentials could be causing financial strain and delinquency in businesses that provide non-essential goods and services.”

Canada’s trade war with the United States, high inflation and elevated interest rates have impacted businesses across the country.

The Canadian Federation of Independent Business predicted in

a recent report

that 19 per cent of small businesses impacted by tariffs would not last six months if the status quo remains, while 38 per cent won’t last a year.

Still, Brown believes businesses have not seen the worst of it just yet.

“The true economic impact of today’s trade tensions and rising unemployment will not be felt all at once,” he said. “For many regions and sectors, the full effects may only materialize as the year’s economic headwinds continue to unfold.”

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Tesla Inc.’s stock jumped more than seven per cent on Monday morning after Tesla chief executive Elon Musk bought $1 billion in the electric vehicle maker’s stock following the announcement of an his unprecedented pay package.

The pay package could be worth more than $1 trillion if the company hits a series of ambitious targets in terms of market value and performance.

The stock had fallen 45 per cent on the year in April, but is now poised to turn into the positive.

For Musk, the move is a show of faith in the company he built.

Read more here.

  • Today’s data: Housing starts for August, Consumer price index for August, U.S. retail sales for August,
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  • Trump says companies should report earnings every six months

Those looking at a mid-year financial check in before the holiday season may find that progress toward financial goals has stalled. There are several possible reasons for this. For one, micro expenses that add up, such as memberships, delivery fees and streaming services, can amount to hundreds of dollars per year.

Read more here.

Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at

wealth@postmedia.com

with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).

McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s

Financial Post column

can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus, check out his

mortgage rate page

for Canada’s lowest national mortgage rates, updated daily.

Financial Post on YouTube

Visit the Financial Post’s

YouTube channel

for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff, Canadian Press and Bloomberg.

Have a story idea, pitch, embargoed report or a suggestion for this newsletter? Email us at

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