New Adyen Data Reveals Canadian Small Businesses Risk Layoffs and Closures as Funding and Cash Flow Gaps Widen, New Adyen Data Shows
TORONTO, Nov. 02, 2026 (GLOBE NEWSWIRE) -- Adyen, the global financial technology platform of choice for leading businesses, today shares new data that finds amid rising costs, tariff pressures and softer consumer spending, Canadian small businesses are heading into the holiday season with little room for financial disruption.
An Adyen survey of 1,015 Canadian small and medium-sized business owners found 71% say recent economic conditions such as tariffs, interest rates and inflation have affected their operations. Four in ten (40%) cite rising supply costs and a third (34%) shrinking profit margins, while 29% have lost sales or revenue due to lower consumer spending. The findings come as small business confidence dropped 10 points to 47.9 in September, according to the CFIB Business Barometer, and Canada lost 68,000 jobs in September, a second straight monthly decline. As margins shrink, how quickly businesses can access cash matters more than ever: more than half (53%) of owners say receiving payouts faster would make a difference to their business.
For many businesses, those pressures are steadily eroding the cash cushion they rely on to cover day-to-day costs. One in four (25%) surveyed owners say their business could cover wages, rent, supplies and other operating costs for less than a month without sales payouts, and 14% could last a week or less. Contrary to the assumption that cash flow is mainly a challenge for the smallest operators, the pressure intensifies as businesses grow: nearly half (47%) of businesses with 26–250 employees say the time it takes to receive funds from sales often causes cash flow challenges, more than double the rate of sole traders (20%). Among those larger businesses, 79% say faster payouts would have an impact, including 30% who say it would be significant.
When cash runs short, many owners are shouldering the financial risk personally rather than turning to traditional lenders. Half (50%) would use personal savings if they needed funding today, compared to 34% who would seek a bank loan, 17% who would seek a credit union loan and 12% who would borrow from family or friends. Personal guarantees or financial exposure (28%) and too much paperwork (25%) are the top barriers to accessing capital.
As businesses grow and their funding needs become more complex, many are beginning to look beyond traditional lenders altogether. Among businesses with 26–250 employees, 32% cite strict collateral requirements and 31% slow approval timelines as barriers to capital, and nearly one in four (23%) would turn to financing through a technology provider or software platform they already use, compared to 8% of business owners overall.
The consequences of these funding gaps would ripple out to the employees and communities that depend on these businesses. Small businesses (those with 1–99 employees) employ 46.6% of Canada’s private-sector workforce, according to Innovation, Science and Economic Development Canada. If unable to secure funding when needed, 36% of surveyed owners could delay, halt or cancel growth plans, 19% anticipate operational cutbacks such as layoffs or delayed wages (rising to 41% among businesses with 26–250 employees), and 17% say their business could close or go bankrupt.
“Canadian businesses are under real pressure right now, but there’s a clear opportunity in these findings,” said Sander Meijers, Canada Country Manager at Adyen. “Owners are telling us that faster access to their own revenue and simpler paths to funding would make a real difference, especially as they grow. Financing built into the platforms businesses already use is a modern evolution of business banking, and it can help keep teams employed, growth plans on track and local economies moving.”
Through its financial products, Adyen enables the platforms it powers to offer faster access to sales revenue and embedded financing, giving the businesses on those platforms the means to manage day-to-day operations, navigate cash flow challenges and pursue growth without waiting on traditional financing.
Methodology
These findings are from a survey conducted by Adyen in October 2026, among a sample of 1,015 Canadian small and medium-sized business owners and self-employed Canadians who are members of the Angus Reid Forum and are involved in their business’s payments, cash flow, financing or banking decisions. Respondents represent businesses with up to 250 employees. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-3.1 percentage points, 19 times out of 20.
About Adyen
Adyen (ADYEN:AMS) is the financial technology platform of choice for leading companies. By providing end-to-end payments capabilities, data-driven insights, and financial products in a single global solution, Adyen helps businesses achieve their ambitions faster. With offices around the world, Adyen works with the likes of Meta, Uber, H&M, eBay, and Microsoft.