SME Financing in Canada, 2003 — Figure Descriptions

Figure 1: Percentage of SMEs Requesting Debt Financing in 2001

• 82% of SMEs did not request debt financing in 2001
• 18% of SMEs requested debt financing in 2001

Debt Instrument Usage in 2001

Type of Loans	Percentage
Term Loans	33
New Lines of Credit	32
Mortgage Loans	16
Increase in Current Lines of Credit	9
Demand or Short-term Loans	8
New Credit Card	3

[Back to Figure 1]

Figure 2: Percentage of SMEs Requesting Lease Financing in 2001

• 93% of SMEs did not request lease financing in 2001
• 7% of SMEs requested lease financing in 2001

Lease Financing Usage in 2001

Type of Financing	Percentage
Autos and Light-duty Vehicules	29
Heavy-duty Vehicules	20
Computers/Equipment	11
Office Equipment	8
Construction Machinery	7
Manufacturing Machinery	6
Other	17

[Back to Figure 2]

Figure 3: Percentage of SMEs Using Financial Instruments in 2000, by Type

Type of Financing	Percentage
Commercial Loans and Lines of Credit	49
Trade Credit from Suppliers	39
Personal Savings of Owner(s)	35
Personal Credit Cards of Owner(s)	33
Business' Retained Earnings	31
Commercial Credit Cards	26
Personal Lines of Credit of Owner(s)	21
Leasing	16
Personal Loans of Owner(s)	14
Loans from Friends and Relatives of Owner(s)	10
Government Loans and Grants	7
Loans and Investments from Other Individuals	4
Other Sources	4
Loans from Employees	3
Factoring	3

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Figure 4: Authorizations of Commercial Debt by Financial Service Providers as of December 31, 2001

Financial Service Providers	Total Authorizations	Authorizations Under $1 Million
Domestic Banks	68%	48%
Other Banks	10%	6%
Credit Unions/Caisses Populaires	4%	18%
Leasing Companies	1%	1%
Finance Companies	7%	24%
Portfolio Managers	2%	1%
Insurance Companies	8%	2%
Total	$855.5 Billion	$147.7 Billion

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Figure 5: Types and Amounts of Risk Capital Financing by Stage of Development — Technology-Driven Businesses

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Figure 6: Canadian VC Activity, 1998–2002

Years	Amounts Invested ($ Millions)	Funds Raised ($ Millions)	Number of Investments
1998	1559	1600	974
1999	2650	2000	983
2000	5778	3800	1335
2001	3800	4600	968
2002	2466	3200	814

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Figure 7: Distribution of Canadian SMEs, 2001

Provinces	Distribution
British Columbia/Yukon	13.5%
Alberta/NWT	12.9%
Manitoba/Saskatchewan/Nunavut	8.9%
Ontario	35.2%
Quebec	23.3%
Atlantic Provinces	6.1%
Total SMEs in Canada	1.5 Million

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Figure 8: Distribution of Canadian SMEs by Sector in 2001

Sector	Distribution
Agriculture	13%
Primary	2%
Manufacturing	5%
Wholesale/Retail	16%
Professional Services	13%
KBI Sector	5%
Other Sector	47%

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Figure 9: Distribution of Canadian SMEs by Size of Business (by Number of Employees) in 2001

Number of Employees	Distribution
0	44%
1 to 4	37%
5 to 9	14%
20 to 99	5%
100 to 499	<1%

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Figure 10: Distribution of SMEs by Employment Size by Sector in 2001

Sector	Number of Employees
	0	1 to 4	5 to 19	20 to 99	100 to 499
Agriculture	64%	32%	3%	1%	<1%
Primary	36%	45%	16%	3%	<1%
Manufacturing	28%	35%	22%	13%	2%
Wholesale/Retail	32%	40%	20%	8%	<1%
Professional Services	55%	36%	7%	2%	<1%
KBI Sector	47%	44%	6%	3%	<1%
Other Sectors	41%	38%	16%	5%	<1%

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Figure 11: Gross Domestic Product of Canada, 1998–2002

	1998				1999				2000				2001				2002
	I	II	III	IV	I	II	III	IV	I	II	III	IV	I	II	III	IV	I
Gross Domestic Product, Chained $ (1997)	1.3	0.3	1.1	1.7	1.5	1.1	1.4	1.5	1.0	0.5	1.3	0.5	0.2	0.1	-0.1	0.7	1.5
Final Domestic Demand, Chained $ (1997)	0.3	0.8	0.3	0.6	1.4	1.5	1.0	1.2	0.8	0.8	1.2	0.5	0.7	0.6	0.5	0.1	0.9

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Figure 12: Interest Rate Variations, 1998-2002

	1998				1999				2000				2001				2002
	I	II	III	IV	I	II	III	IV	I	II	III	IV	I	II	III	IV	I	II
Bank of Canada Rate	4.83	5.00	5.25	5.33	5.17	4.83	4.75	4.92	5.25	5.83	6.00	6.00	5.58	4.83	4.17	2.67	2.25	2.50

[Back to Figure 12]