Canadian commercial lending rises in first quarter -PayNet

Wed May 29, 2013 4:59am EDT
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* Canadian business lending index rises 4 pct in Q1 from Q4

* Borrowing up 29 pct year-over-year

* Commercial loan delinquencies also rise

By John Tilak

TORONTO, May 29 (Reuters) - Commercial borrowing by small and medium-sized businesses in Canada climbed in the first quarter, driven by robust domestic and global demand, a PayNet survey showed on Wednesday.

PayNet, which tracks commercial financing for millions of North American small and medium-sized businesses, said its Canadian Business Lending Index rose to 194, the highest level since it was created in 2005.

The index rose 4 percent in the first quarter from the fourth quarter and was up 29 percent year-over-year.

"The demand for our goods and services, and our resources is definitely fueling the increase in investment by Canadian businesses," Anthony Zambon, director of PayNet Canada, said.

"The data shows small- and medium-sized businesses are resilient and continuing to invest, with the prospect of supporting economic growth in the near future."   Continued...