Findings from the Small Business Risk Review have been released for the first quarter of 2017.
The latest quarterly analysis of aggregated and trade payment data reveals a need for businesses to be more vigilant of their customers.
Court actions in Victoria and New South Wales have risen 6 months after a significant increase of the average payment default (+206%) occurred in Q3 2016.
Managing Director of CreditorWatch, Colin Porter said “Anyone in the position of providing credit to a customer that has defaulted on payment with another supplier should be concerned and trade with caution.”
The number of unincorporated entities (sole traders, trusts and partnerships) changing status from “active” to “cancelled” continues to grow with a 76% reported increase in Q1 2017.
“If you’re not monitoring your customers for important changes such as defaults, court actions and other tell-tale failure signs, then I strongly suggest you consider doing so” adds Porter.