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About Quick Tips

At every Synergy48 Group meeting members share useful information from their industry that may be of value to other members’ clients. Sometimes it’s just a quick tip like this one.

Small Business Risk Review 2019

A quick summary of a recent webinar from Creditor Watch.  Some interesting stats and risk areas to watch out for when extending credit in your business

  • Y2018 v 2019          29% increase in defaults over this period
  • Q4 2018 v Q4 2019          there was a 15% increase in defaults

The industries recording the largest number of defaults 2018 v 2019 were:

  • Transport (64%)
  • Heath care (79%)
  • Real Estate Services  (61%)

Payment Terms – the slowest payers are (on average):

  • IT, media & telco    (62 days)
  • Financial Services   (63 days)
  • Construction   (64 days)

In relation to Court Actions, Victoria was the lowest with only a 4% increase on 2018 whilst NSW (39%), WA (33%) and SA (57%) were the worst.  Australia as a whole had a yearly increase of 9% in Court Actions

  • The total number of insolvencies 2018 v 2019 showed a decrease of 14% year v year.
  • The industry with the largest percentage of defaults for the year was Mining (74%) increase
  • The number of bankruptcies over the same period showed a decrease of 19%
  •  This is a 25 year low for bankruptcies
  • 25% of all bankruptcies are business related
  • Natural disasters often lead to a spike in bankruptcies.  Expect a rise in the coming 6 to 12 months due to the fires

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