Canadian small businesses face potential cutbacks and closures if they cannot access funding, according to new research from payments platform Adyen.
The survey found 19% of owners anticipate operational cutbacks, including layoffs or delayed wages, if needed financing is unavailable. Another 17% say their business could close or go bankrupt, while 36% could postpone or cancel growth plans.
Access to sales revenue is also a pressure point. One-quarter of respondents say they could cover operating expenses for less than a month without sales payouts. More than half say faster payouts would help their business.
The findings highlight an opening for embedded finance. Among businesses with 26–250 employees, 23% would consider financing through an existing technology or software provider, compared with 8% overall.
Half of respondents would draw on personal savings if they needed funding today; 34% would seek a bank loan.
Adyen positions faster payouts and financing integrated into business platforms as ways to address these gaps.
The October survey included 1,015 Canadian business owners and self-employed Canadians from the Angus Reid Forum, representing businesses with up to 250 employees.
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