* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Saturday, September 27, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Cardi B Adds More Dates to Little Miss Drama Tour: ‘Y’all Making Me Work’ – Yahoo

    Cardi B Extends Little Miss Drama Tour: “Y’all Making Me Work

    ‘Today’: Sheinelle Jones Thanks Katie Couric for Support After Husband’s Death – CBS 19 News

    Sheinelle Jones Expresses Heartfelt Thanks to Katie Couric for Support After Husband’s Passing

    Sate your hunger at DBA’s Taste of Downtown – Bakersfield.com

    Indulge Your Cravings at DBA’s Taste of Downtown!

    Caesars Entertainment (CZR): Assessing Valuation After Times Square Casino Setback and Mounting Investor Concerns – simplywall.st

    Caesars Entertainment Faces Times Square Casino Hurdles as Investor Concerns Mount

    Why Hilaria Baldwin Has Found the ‘DWTS’ Process ‘Embarrassing’ At Times – WFXG

    Hilaria Baldwin Opens Up About the Embarrassing Moments on Her ‘DWTS’ Journey

    Harvest Fest 2025 – yadkinripple.com

    Celebrate the Bounty: Harvest Fest 2025 is Coming!

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Autonomous Solutions shows off cutting-edge technology for the public – Cache Valley Daily

    Autonomous Solutions Unveils Cutting-Edge Technology for the Public

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    What are we really gaining from technology? – Fast Company

    What Are We Really Gaining from Technology?

    TOMI Environmental Solutions, Inc. Expands SteraMist iHP Technology Services in Healthcare Sector with New Provider Partnership – Quiver Quantitative

    TOMI Environmental Solutions Accelerates SteraMist iHP Technology Expansion in Healthcare with New Provider Partnership

    Indiana County Technology Center’s Joint Operating Committee looks to the future as program plans began to take shape – Indiana Gazette Online

    Indiana County Technology Center’s Joint Operating Committee Charts an Exciting Path Forward as New Program Plans Take Shape

    Meta to expand Montgomery data hub, pushing total investment to $1.5 billion – Alabama Department of Commerce

    Meta to Supercharge Montgomery Data Hub with $1.5 Billion Investment

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Cardi B Adds More Dates to Little Miss Drama Tour: ‘Y’all Making Me Work’ – Yahoo

    Cardi B Extends Little Miss Drama Tour: “Y’all Making Me Work

    ‘Today’: Sheinelle Jones Thanks Katie Couric for Support After Husband’s Death – CBS 19 News

    Sheinelle Jones Expresses Heartfelt Thanks to Katie Couric for Support After Husband’s Passing

    Sate your hunger at DBA’s Taste of Downtown – Bakersfield.com

    Indulge Your Cravings at DBA’s Taste of Downtown!

    Caesars Entertainment (CZR): Assessing Valuation After Times Square Casino Setback and Mounting Investor Concerns – simplywall.st

    Caesars Entertainment Faces Times Square Casino Hurdles as Investor Concerns Mount

    Why Hilaria Baldwin Has Found the ‘DWTS’ Process ‘Embarrassing’ At Times – WFXG

    Hilaria Baldwin Opens Up About the Embarrassing Moments on Her ‘DWTS’ Journey

    Harvest Fest 2025 – yadkinripple.com

    Celebrate the Bounty: Harvest Fest 2025 is Coming!

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Autonomous Solutions shows off cutting-edge technology for the public – Cache Valley Daily

    Autonomous Solutions Unveils Cutting-Edge Technology for the Public

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    What are we really gaining from technology? – Fast Company

    What Are We Really Gaining from Technology?

    TOMI Environmental Solutions, Inc. Expands SteraMist iHP Technology Services in Healthcare Sector with New Provider Partnership – Quiver Quantitative

    TOMI Environmental Solutions Accelerates SteraMist iHP Technology Expansion in Healthcare with New Provider Partnership

    Indiana County Technology Center’s Joint Operating Committee looks to the future as program plans began to take shape – Indiana Gazette Online

    Indiana County Technology Center’s Joint Operating Committee Charts an Exciting Path Forward as New Program Plans Take Shape

    Meta to expand Montgomery data hub, pushing total investment to $1.5 billion – Alabama Department of Commerce

    Meta to Supercharge Montgomery Data Hub with $1.5 Billion Investment

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

SME activity hits 7-year low amid payment defaults

September 13, 2023
in Business
SME activity hits 7-year low amid payment defaults
Share on FacebookShare on Twitter

The August CreditorWatch Business Risk Index (BRI) unveiled a challenging business landscape for SMEs in Australia.

The most concerning development was the significant decline in the average value of Business-to-Business (B2B) invoices, which nosedived by 36% year-on-year, hitting its lowest point since January 2017.

These findings highlight a challenging landscape for Australian businesses. They are currently facing a dual challenge of decreasing orders and mounting cost pressures, all amid a backdrop of shrinking consumer demand. This combination is cascading through the supply chain, causing a dip in order values and impacting overall revenue. Furthermore, key indicators such as a 28% year-on-year increase in external administrations, the highest since October 2015, and a 30% year-on-year rise in trade payment defaults, are signaling the hurdles that businesses are navigating. While credit enquiries surged by 65% year-on-year, they have recently trended downwards, reflecting a decline in overall business activity. Court actions are on the rise, though still below pre-COVID levels. 

Furthermore, the national business failure rate is predicted to escalate from the current 4.54% to 5.76% over the next year, reflecting the tough economic climate. Notably, businesses in the food and beverage sector face the highest risk of payment defaults at 7%, followed by the transport and warehousing industry at 4.5%. The construction sector has experienced a consistent upward trend in external administrations since May 2021, surpassing pre-COVID levels. 

SME activity hits 7-year low amid payment defaults

Despite these challenges, specific regions in South Australia, such as Norwood-Payneham-St Peters, Ballarat in Victoria, and Unley in South Australia, exhibit lower business failure risks. Conversely, regions with higher insolvency risks are concentrated around Western Sydney and South-East Queensland, with Merrylands-Guildford in NSW forecasted to experience a default rate of 7.77% in the near future, followed by Canterbury and Bankstown, also in Western Sydney. The decline in invoice values reflects the ongoing economic challenges experienced by Australian SMEs. Cost pressures and a decrease in consumer demand have translated into fewer orders, affecting revenue across the supply chain. Additionally, various critical business indicators, including external administrations, trade payment defaults, credit inquiries, and court actions, further underscore the growing challenges that SMEs are confronting.

Rise in External Administrations: External administrations have surged by 28% year-on-year, reaching their highest point since October 2015.

Trade Payment Defaults Spike: Trade payment defaults, often serving as early warnings of business failure, have witnessed a 30% year-on-year increase.

Surge in Credit Inquiries: Credit inquiries have soared by an astounding 65% year-on-year, though recent trends indicate a decline, mirroring the broader decrease in business activity.

Increasing Court Actions: Court actions have been on the rise, although they are yet to reach pre-COVID levels.

Projected Business Failure Rate: CreditorWatch’s forecast for the national business failure rate over the next 12 months anticipates an increase from the current rate of 4.54% to 5.76%, signifying a challenging path ahead for SMEs.

Challenges Across Industries:

Food and Beverage Services: This sector faces the highest risk of payment defaults at 7.0%, primarily due to high operating costs and declining discretionary spending.

Transport, Postal, and Warehousing: The transport sector closely follows with a 4.5% risk of payment defaults. The slowdown in online shopping growth has impacted this industry.

Construction: Rates of external administration in the construction sector now exceed pre-COVID levels, underlining the ongoing challenges faced by this industry.

Regional Variances:

South Australia has exhibited pockets of resilience, with three of the six lowest-risk areas in the nation located within the state.

Norwood-Payneham-St Peters in inner Adelaide stands out as the lowest-ranked region in Australia for business failures.

In contrast, areas with the highest insolvency risk continue to cluster around Western Sydney and South-East Queensland.

Declining invoice values amidst economic challenges

Despite the demanding conditions imposed by lockdowns, Australian consumers exhibited robust per capita spending during the 2020 and early 2021 period. A surge in construction and renovation activities led to elevated average invoice values during this time. However, as the construction and retail sectors experience a significant slowdown, the average invoice sizes are on a decline. This trend serves as an indicator that unemployment may rise in the coming period, as many businesses are scaling down their need for additional labor.

Increasing B2B trade payment defaults

CreditorWatch’s Trade Payments Default Index highlights an alarming trend of businesses lodging defaults against their debtors at record rates. Anneke Thompson, a noted expert, observes that as the average invoice sizes decrease, it is logical to expect a reduction in cash flow among a growing number of businesses. This, in turn, results in more instances of late payment of invoices. Unfortunately, this situation has a cascading effect, as businesses experiencing delayed payments are at a heightened risk of becoming late payers themselves. Recent data from the past few months confirms that this cycle is already in motion.

CreditorWatch CEO, Patrick Coghlan, says the impact of contractionary monetary policy and inflation on consumers, is clearly being felt by businesses.

“Twelve rate rises in just over a year was always going to have a major effect on consumer sentiment and force people to tighten their belts, having a particularly big impact on those businesses exposed to discretionary spending,” he says. “I’m very sorry to say that we’re far from the peak of business failures.”

CreditorWatch Chief Economist, Anneke Thompson, says the good news is that monetary policy tightening has worked to slow consumer and business spending.

“This, in turn, is driving inflation down,” she says. “The unfortunate reality is that this will also result in business failures, particularly for those businesses that were already only marginally profitable when interest rate settings were low.”

Despite the challenges posed by lockdowns, the decline in the average size of invoices is a growing concern. As the construction and retail sectors experience significant slowdowns, the demand for additional labor diminishes, potentially leading to higher unemployment.

The increase in trade payment defaults can be attributed to reduced cash flow among SMEs. Late payments create a ripple effect, as businesses receiving late payments may also struggle to meet their own financial obligations.

As SMEs fall further behind in payments, coupled with declining consumer and business activity, CreditorWatch anticipates a significant uptick in business failures over the next year. The Australian Tax Office’s stricter approach to collecting overdue GST payments exacerbates the pressure on SMEs’ cash flow.

With interest rates expected to remain at current settings until at least mid-2024, consumers are likely to continue curtailing their spending as a larger portion of their income goes toward interest payments and rent. This scenario is poised to drive business failure rates even higher, especially in regions with highly leveraged households or those grappling with high rents relative to incomes.

Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Dynamic Business – https://dynamicbusiness.com/topics/news/sme-activity-hits-7-year-low-amid-payment-defaults.html

Tags: -yearactivitybusiness
Previous Post

App Army Assemble: Six Ages 2: Lights Go Out -based strategy game worth the cost?”

Next Post

Is AI data retention in models like ChatGPT a privacy threat?

Hypertension – World Health Organization (WHO)

Hypertension – World Health Organization (WHO)

September 26, 2025
In Kansas City, Secretary Rollins Speaks on State of Farm Economy, Announces Suite of Actions to Support American Farmers – USDA (.gov)

Secretary Rollins Launches Bold New Initiatives to Boost Kansas City’s Farm Economy and Empower American Farmers

September 26, 2025
Cardi B Adds More Dates to Little Miss Drama Tour: ‘Y’all Making Me Work’ – Yahoo

Cardi B Extends Little Miss Drama Tour: “Y’all Making Me Work

September 26, 2025
Vandalia Health Mon Stonewall Jackson Memorial Hospital to host blood drive Sept. 29 – Mon Health

Vandalia Health Mon Stonewall Jackson Memorial Hospital to Host Life-Saving Blood Drive on September 29

September 26, 2025
Special congressional election sees 3% voter turnout in Nashville: Week in politics – The Tennessean

Nashville’s Special Congressional Election Draws Just 3% Voter Turnout

September 26, 2025
Ecological burns slated for Corvallis area this weekend – NPR for Oregonians

Ecological Burns Set for This Weekend to Revitalize Corvallis Habitats

September 26, 2025
Beijing International Week for Science Literacy Wraps Up with Focus on AI-Driven Communication – The Korea Herald

Beijing International Week for Science Literacy Wraps Up Highlighting AI-Powered Communication Innovations

September 26, 2025
Science & Society: September 2025 – Yale School of Public Health

Science & Society: September 2025 – Yale School of Public Health

September 26, 2025
New Mexico Prickly Pear Festival expands to two-day event – Albuquerque Journal

New Mexico Prickly Pear Festival Grows into Exciting Two-Day Celebration

September 26, 2025
Autonomous Solutions shows off cutting-edge technology for the public – Cache Valley Daily

Autonomous Solutions Unveils Cutting-Edge Technology for the Public

September 26, 2025

Categories

Archives

September 2025
MTWTFSS
1234567
891011121314
15161718192021
22232425262728
2930 
« Aug    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (838)
  • Economy (859)
  • Entertainment (21,734)
  • General (17,259)
  • Health (9,902)
  • Lifestyle (871)
  • News (22,149)
  • People (860)
  • Politics (869)
  • Science (16,068)
  • Sports (21,358)
  • Technology (15,841)
  • World (842)

Recent News

Hypertension – World Health Organization (WHO)

Hypertension – World Health Organization (WHO)

September 26, 2025
In Kansas City, Secretary Rollins Speaks on State of Farm Economy, Announces Suite of Actions to Support American Farmers – USDA (.gov)

Secretary Rollins Launches Bold New Initiatives to Boost Kansas City’s Farm Economy and Empower American Farmers

September 26, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version