A large number of Canadian businesses are struggling to pay their debts, according to a new report.

Equifax Canada's report shows that business delinquencies rose 3.4 percent in the third quarter from the previous quarter, indicating potential problems with debt repayment.

It is also stated in this report that credit demand among businesses has decreased by 1.9% compared to the last quarter, but has increased by 13.2% compared to last year.

Data shows that as the end of the year approaches, more businesses are seeking credit, which could be a sign of financial stress.

Jeff Brown, head of business solutions at Equifax Canada, says the data reflects a shift in business behavior and an increased reliance on existing lines of credit and cards, leading to higher debt burdens.

Credit card debt rose 15 percent to more than $100 billion for the first time in history, an Equifax report showed. In addition, total liabilities also increased by six percent to more than $2.37 trillion.

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