Short answer: to check a business customer's credit in 2026, confirm the legal entity first, then look at how the business pays its lenders as well as its suppliers. Trade references alone can miss stress that shows at the bank first. In Q2 2026, the 60+ day delinquency rate on Canadian business financial credit reached 4.0%, its highest level since 2019, while 60+ day delinquency on supplier (industrial trade) credit fell 24.4% year over year (Equifax Canada, September 14, 2026).
Key takeaways
Equifax Canada's Q2 2026 Commercial Credit Trends release describes a divide in how Canadian businesses are managing their obligations. Payments to suppliers improved. Payments to banks and lenders got worse.
| Measure (Canada, Q2 2026) | Level | Year over year |
|---|---|---|
| 60+ day delinquency, business financial credit | 4.0% (highest since 2019) | Up 19.7% |
| 60+ day delinquency, industrial trade (supplier) credit | 4.26% | Down 24.4% |
| Average commercial debt per business | $30,581 | Up 7.3% |
| 60+ day delinquency, commercial credit cards | 4.07% | Up 24% |
| Average debt, businesses 12 months old or younger | $48,173 | Up 71.7% |
| Business restructuring proposals (Office of the Superintendent of Bankruptcy) | Part of 1,281 business insolvency filings | Proposals up 30.3%; bankruptcies down 8.1% |
Source: Equifax Canada, Q2 2026 Quarterly Business Credit Trends, September 14, 2026. Ontario had the highest provincial financial-trade delinquency rate at 4.44%, followed by Alberta (3.93%) and Manitoba (3.68%).
When cash is tight, a business decides which bills to pay first. Suppliers who keep inventory, materials and services arriving tend to be paid, because without them the business stops operating. A loan payment, a credit card balance or a line of credit can fall behind for longer before anything visible happens.
Equifax Canada's Jeff Brown described it as businesses "prioritizing the payments most essential to keeping the business operating." For a credit manager, landlord or lender, that means a reference from a supplier is now a narrower view than it used to be. It shows how a customer pays one kind of creditor. It doesn't show what the customer owes elsewhere, or how those accounts are going.
The restructuring numbers point the same way. More insolvent businesses are filing proposals to restructure rather than going straight to bankruptcy, so a customer can keep trading while it works through a proposal with its creditors.
Supplier accounts keep goods moving, so they're often paid first when cash is tight.
These steps apply whether you're opening a new account, approving a commercial tenant or taking on a partner. Each one answers a different question, and together they show how the business manages all of its obligations, not just one.
| What you see | What it can mean | What to ask |
|---|---|---|
| Clean trade references, weaker bank rating | Suppliers are being paid first while lender accounts slip | How are the business's loans and lines of credit performing? |
| Several new security registrations in recent months | New borrowing, refinancing or assets pledged to cover existing debt | What was financed, and what's left unencumbered? |
| A young business with fast-growing debt | Normal start-up borrowing, or obligations growing faster than revenue | Who is behind the business, and is a guarantee appropriate? |
| Judgments or collection claims from other creditors | An isolated dispute, or a pattern of unpaid obligations | Are they resolved, and are they recent? |
| A filed proposal or notice of intention | The business is restructuring its debts under insolvency law | How would new credit be treated, and who is the trustee? |
Trade references are a useful start, and they're inexpensive. A commercial credit report is broader because it's built from registries, institutions and current sources rather than from contacts the customer chose.
| Question | Trade references | Commercial credit report |
|---|---|---|
| How does the business pay its suppliers? | Yes, for the suppliers listed | Yes, with current supplier and landlord ratings |
| How does it manage its bank accounts and borrowing? | No | Yes, through bank ratings |
| Is it the legal entity you're contracting with? | No | Yes, from the corporate profile |
| What has it already pledged? | No | Yes, from security registrations |
| Are there legal actions, judgments or insolvency filings? | No | Yes |
A credit file is a snapshot. Given how quickly lender delinquency moved in 2026, it's worth refreshing it when:
Quality Credit Reporting has prepared investigative credit reports for businesses in Canada and the U.S. since 1992. Our Commercial / Individual Reports cover companies and the people behind them: corporate profile, current bank and supplier ratings, security registrations, legal actions, judgments and collections. A specific investigator prepares each report and can walk you through what was found. You can request a sample report to see the format.
Confirm the company's legal name and status in the federal or provincial corporate registry, then review its bank ratings, trade references, personal property security registrations, legal actions and insolvency filings. A commercial credit report from a licensed credit reporting agency brings these sources together in one document.
Not on their own. Trade references show how a business pays the suppliers it chose to list. In 2026, Canadian businesses have been paying suppliers more reliably while falling behind with lenders, so bank ratings, lien registrations and legal records add information that references can't.
It's the share of balances that are at least 60 days past due. Equifax Canada reported a 4.0% rate on business financial credit products in Q2 2026, the highest since 2019.
Information about a company is generally treated differently from information about an individual. Reports that include personal information about owners or guarantors usually require that person's consent and a permitted purpose under provincial consumer reporting and privacy laws. Your credit application should include the consent you need.
At least once a year for active accounts, and whenever a customer asks for more credit, pays later than usual, changes ownership or renews a lease or supply agreement.
This article is general information, not legal, accounting or financial advice. Figures are from the sources linked above as published on the dates shown.
Related reading: the importance of a commercial credit application, what to look for in a corporate profile and what a land title sub-search can reveal.