Our latest episode of Business Insights is the second in a three-part series on how SMEs can best prepare themselves for uncertainty using the 3 Ps of preparation: processes, policies and procedures, and protection.

Our guest for the series is an expert in helping businesses with best-practice preparation: Natalie Ledlin, Solicitor Director at Ledlin Lawyers. 

In our second episode on policies and procedures, Natalie takes us through setting up payment terms, credit policies and limits, and collection procedures, as well as prioritising payments and ensuring privacy of data.

Contact information: [email protected]

In this challenging economic climate, it is more crucial than ever that businesses are well prepared for whatever impacts come their way.

Our latest episode of Business Insights is the first in a three-part series on how SMEs can best prepare themselves for uncertainty using the 3 Ps of preparation: processes, policies and procedures, and protection.

Our guest for the series is an expert in this area: Natalie Ledlin, Solicitor Director at Ledlin Lawyers. 

In our first episode on processes, Natalie takes us through the key legal considerations around customer onboarding, credit policies, prioritising payments and privacy of data.

Contact information: [email protected]

In our latest episode, we present the January Business Risk Index results and analysis. CreditorWatch CEO Patrick Coghlan and index creator James O'Donnell from Open Analytics discuss the key insights.

Key Business Risk Index insights for March:

Trade receivables and credit enquiries up, indicating the economy many have reached a turning point for trade activity.

Multiple adverse impacts will likely temper this positive data over the coming months.

The Business Risk Index national default rate was up marginally to 5.8 percent, from 5.7 per cent in February, however CreditorWatch forecasts a continued rise across 2022.

Credit enquiries were at 219,428 for March – the highest monthly number since July 2021 and second highest since March last year.

Court actions were at their highest point since March 2021 indicating that enforcements and collection activities are returning to normal levels.

Trade payment defaults are at their equal highest point since October 2020, another leading indicator of rising insolvencies.

The probability of default for the hospitality industry jumped from 6.7 per cent to 7.2 per cent from February to March. Arts and Recreation and Transport have also deteriorated.

Trade payment default rates in the Lismore region have increased from February to March but remain well below the national average.

The net result of the CreditorWatch Business Risk Index and our broader credit indicators is that the economic outlook is bumpy, with multiple negative impacts conspiring to drag on growth.

 

Register to be the first to receive monthly insights from the Business Risk index at creditorwatch.biz/businessriskindex.

In this episode of Business Insights, we take you through how to improve the strength of your ledger, with CreditorWatch’s Trade Consultant for DebtorLogic, Lucinda Judd. In these times of uncertainty for businesses, ensuring that your customers are reliable and able to pay on time is critically important for your cash flow.

CreditorWatch’s DebtorLogic tool can help in two ways: by helping to identify those customers that are most likely to pay late or not at all and also allowing you to target those businesses in your industry that show the best payment behaviour.

To find our how DebtorLogic can help your business improve the quality of its ledger, get in touch with Lucinda at [email protected].

The Personal Property Securities Register (PPSR) is an essential facility for all businesses leasing or selling goods or services on credit. But it is also widely misunderstood by small business owners. In this episode of Business Insights, Paul Mead, PPSR Sales Specialist (NSW) and Jason Sutherlin, PPSR Sales Specialist (Victoria) discuss the essential elements to consider when registering assets on the PPSR.

Key points:

The purpose of the PPSR

Why searching on the PPSR is important for businesses

Types of property not covered

Key considerations for businesses when registering personal property on the register

Why it is important to register within set time frames the different types of property

Read more on how to protect your assets using the PPSR here.

In the latest episode of Business Insights we speak to CreditorWatch's Victorian Sales Manager Hilbert Klaster about supplier hopping - the practice of moving from one supplier to another, leaving a trail of unpaid debts - why it is on the rise and how businesses can avoid being caught up in it.

Key points:

What is supplier hopping?

Why it is on the rise.

How can you identify a supplier hopper?

What can creditors do to protect themselves from the effects of supplier hopping?

What should creditors do if they suspect a debtor/customer is supplier hopping?

The Australian economy is rife with uncertainty due largely to the ongoing impacts of the COVID-19 pandemic and its multiple variants, such as supply chain disruptions and labour shortages, but also the war in Ukraine, floods on the east coast, rising inflation and the impending Federal Election.

In our latest Business Insights episode, CreditorWatch CEO Patrick Coghlan and Shift CEO Jamie Osborn unpack what all this means for business operators and how they can best prepare themselves. They also discuss the main takeaways from CreditorWatch's Outlook 2022 - Australia's 'phantom' lockdown threatens sustained economic recovery whitepaper.

Key points:

Managing uncertainty and driving success as a business operator

Whether we will see a K-shaped recovery, with big winners and big losers

The prospects for SMEs for the remainder of the year

The biggest challenges currently confronting the business community

Download our Outlook 2022 whitepaper to read the business forecasts from a host of Australian business leaders including Ray White Chief Economist Nerida Conisbee and Managing Director of Open Analytics, James O'Donnell as well as Patrick and Jamie.

In our latest episode, we present the January Business Risk Index results and analysis. CreditorWatch CEO Patrick Coghlan and index creator James O'Donnell from Open Analytics discuss the key insights.

There was a small increase in trade activity for February - an encouraging sign but it is too early to tell if it is the beginning of a sustainable pick up in trade activity. The impact of the east coast floods is yet to be seen in CreditorWatch’s data, but it will undoubtedly drag down trade activity.

Credit enquiries were at 211,357 for February – the highest monthly number since November 2021 and second highest since July.

Court actions have seen a significant increase in the last quarter when compared to the corresponding period last year. We are seeing early signs of enforcements and collections activities returning to normal.

External administrations increased 29 per cent from January to February.

Trade payment defaults jumped 35 per cent from January to February.

The net result of the CreditorWatch Business Risk Index and our broader credit indicators is that trade activity remains subdued with the impending economic impacts of the east-coast floods expected to exacerbate this.

Register to be the first to receive monthly insights from the Business Risk index at creditorwatch.biz/businessriskindex.

In our latest episode, we present the January Business Risk Index results and analysis. CreditorWatch Head of Content Michael Pollack and index creator James O’Donnell from Open Analytics discuss the key insights.

In our latest episode, we present the December Business Risk Index results and analysis. CreditorWatch Head of Content Michael Pollack and index creator James O’Donnell from Open Analytics discuss the key insights.

December trading activity was the lowest since the pandemic began due to the impacts of Omicron. Down 45 per cent on December 2020.

We expect trade activity to continue to slide over H1 2022.

WA continues to be the best performing state as a function of its economy continuing to operate throughout 2021 while many other states were in lockdown.

Queensland and Victoria are struggling to recover from a decline in the tourism trade and extended lockdowns respectively.

Newcastle was the biggest improver among metropolitan areas as its two largest industries, manufacturing and construction, continued to operate unaffected by Omicron in December.

Meanwhile Melbourne continues to decline on the Business Risk Index as the hangover from extended lockdowns remains.

Defaults, external administrations, payment arrears and court actions have dropped. This is typically the case in December so we will be keenly watching the January data for the size of the bounce.

Register to be the first to receive monthly insights from the Business Risk index at creditorwatch.biz/businessriskindex.