The data released by a Chicago-based PayNet Inc. shows that smaller Canadian companies have significantly lower delinquency rates than their counterparts in the United States.

But PayNet president William Phelan says some of these Canadian firms that should be receiving loans to survive and expand are still going begging.

Phelan says in the past year, when the recession was at its worst, Canadian lenders saw delinquency rates actually fall slightly to 2.5 per cent.

That is partly due to conservative lending practices in Canada, according to the head of an association representing small business in Canada.

But she adds that tight credit is also preventing many firms from attaining their potential and is hurting job creation.