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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