The Small Business Risk Review Q1 2017 Report courtesy of CreditorWatch reveals a concerning increase in small business payment default dollar values. Data solicited from more than 50,000 customers serves as the foundation of the report. Highlighting this trend is a 206 per cent increase in the third quarter of 2016 combined with a spike in the number of defaults. Following suit is the proportional spike in NSW and VIC court action over a six month period. The likelihood of payment defaults have been correlated to larger states within Australia along with occurrences within six to twelve months of default registration. Supplies and SMEs in comparison to large corporations are at greater risk of defaulted payments. The Managing Director at CreditWatch recommends careful risk assessment by creditors in the case of customers with prior defaults.
Key Takeaways:
- THERE HAVE BEEN MORE DEFAULTS ON LOANS THAN USUAL BY BUSINESSES
- THE PATTERN OF DEFAULT IS CONTINUING AND RESULTING FROM THE PREVIOUS YEARS
- THE SMALL BUSINESS ARE MORE LIKELY TO LOSE INCOME THAN THE LARGER ONES BECAUSE THE ARE LEDDIK
“Key insights from CreditorWatch’s Small Business Risk Review Q1 2017 Report* showed the average dollar value of payment defaults registered with CreditorWatch had a small rise on the back of significant increases over the last five quarters.”
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