Slater Byrne Recoveries and it’s financial advisory partners have performed an analysis of the current state of Australian businesses from an insolvency and overall economic perspective.
The Report analyses industries within Australia where operating businesses are predicted to face financial hard times within the next 12 months.
Nationally, the top 5 industries at risk of default within the next 12 months are:
- Professional, Scientific and Technical Services
- Retail Trade
- Transport, Postal & Warehousing
One of the top three causes of high commercial risk is inadequate cash flow. Aside from this, you may also be part of the industries at risk of default when you have disorganized financial reports that you are unable to keep track of who’s paying and who’s not. You will need to have a better organised debt management system where invoices are sent out on time and to the correct debtors. An organise debt management system must also be able to keep track of the clients who are not delaying payment or not paying at all.
Another sign is when your Clients are too slow to pay that you have been covering shortfalls by borrowing money. Not having enough cash flow because of unpaying clients may turn the table around, and you will become the debtor because you will be unable to pay your loans as they become due. Explore the 5 tell-tale signs of financial distress in this article.
One way to combat the affects is to be vigilant in accounts receivable and professional assistance with your collections.
Liam White joined the Slater Byrne Recoveries team in early 2013. He has worked across the credit & dispute resolution industry for a number of years. He is currently working in a Marketing/Head of Sales capacity at Slater Byrne Recoveries.