How did your industry fare in Quarter 2 2020?
We’ve revamped our Business Risk Review to bring you monthly insights and data from CreditorWatch’s 50,000+ strong database. In addition, at the end of every quarter, CreditorWatch will do a deep dive into key industries and reveal the stats that Australian businesses need to know.
Every industry has been affected in some way by COVID-19 in Q2, whether it’s been by changing the way they offer goods and services, meeting unprecedented consumer demand or dealing with slow-paying debtors. In fact, all industries except Mining reported a drastic increase in how late their payments were. Across all industries, on average, payment times rose by 342.7%.
The stats below are warning signs along the road to administration. However, temporary government relief measures and Safe Harbour legislation are propping up businesses that are at risk of falling insolvent.
Over the last three months, between 300-400 businesses have gone “missing” from administration statistics, meaning there is risk of a sudden surge in numbers once these relief measures cease.
Compare your industry in Q2 2020 to Q2 2019 below or head back to the blog for more Small Business Risk Review data.
Manufacturing
| Payment Defaults YoY | 39.1% decrease |
| Court Actions YoY | No change |
| External Administrations YoY | 20.7% increase |
| Number of Days Payment Overdue – June 2019 vs June 2020 | 11 to 31 days overdue |
Helpful resource: Learn how this Victorian manufacturing company uses CreditorWatch and ApplyEasy to assess the creditworthiness of customers before doing business with them.
Construction
| Payment Defaults YoY | 9% decrease |
| Court Actions YoY | 23.4% |
| External Administrations YoY | 55.9% decrease |
| Number of Days Payment Overdue – June 2019 vs June 2020 | 15 to 53 days overdue |
Helpful resource: Do you know how to mitigate the risk of using subcontractors in construction? Check out our free guide.
Wholesale Trade
| Payment Defaults YoY | 16.2% decrease |
| Court Actions YoY | 23.4% decrease |
| External Administrations YoY | 30.2% decrease |
| Number of Days Payment Overdue – June 2019 vs June 2020 | 10 to 36 days overdue |
Helpful resource: Registering on the PPSR is a vital way wholesalers can protect their security assets. Read our white paper on how you can protect your wholesale business in a time of crisis.
Retail
| Payment Defaults YoY | 1.6% increase |
| Court Actions YoY | 6.2% increase |
| External Administrations YoY | 5.6% decrease |
| Number of Days Payment Overdue – June 2019 vs June 2020 | 9 to 42 days overdue |
Helpful resource: As one of Australia’s most prominent retailers, Officeworks has had a busy period accommodating the influx of professionals working from home during the pandemic. Find out how they do their due diligence in their case study.
Accommodation and Food Services
| Payment Defaults YoY | 50% decrease |
| Court Actions YoY | 39.7% decrease |
| External Administrations YoY | 55.6% decrease |
| Number of Days Payment Overdue – June 2019 vs June 2020 | 23 to 52 days overdue |
Helpful resource: Use CreditorWatch’s Payment Predictor to identify and avoid slow-paying businesses in the accommodation and food industry.
Transport, Postal and Warehousing
| Payment Defaults YoY | 20.8% decrease |
| Court Actions YoY | 18.2% increase |
| External Administrations YoY | 49.1% decrease |
| Number of Days Payment Overdue – June 2019 vs June 2020 | 12 to 90 days overdue |
Helpful resource: Keep an eye on your risky debtors even when you’re on the road with CreditorWatch’s business monitoring tools.
Financial and Insurance Services
| Payment Defaults YoY | 47.1% decrease |
| Court Actions YoY | 41.2% decrease |
| External Administrations YoY | 2.3% increase |
| Number of Days Payment Overdue – June 2019 vs June 2020 | 10 to 75 days overdue |
Helpful resource: Streamlining manual processes helps save time and effort, which is why Prospa uses PPSRLogic to cut 7 minutes off the time it takes to create a PPS registration. Watch this video to find out how.
Health Care and Social Assistance
| Payment Defaults YoY | 26.7% increase |
| Court Actions YoY | 12.5% decrease |
| External Administrations YoY | No change |
| Number of Days Payment Overdue – June 2019 vs June 2020 | 7 to 52 days overdue |
Helpful resource: How often do you check in on the health of your database? Validating and cleaning up your data with a Portfolio Health Check helps you identify risky customers sooner.
Arts and Recreation Services
| Payment Defaults YoY | 333% increase |
| Court Actions YoY | 13.3% increase |
| External Administrations YoY | No change |
| Number of Days Payment Overdue – June 2019 vs June 2020 | 6 to 60 days overdue |
Helpful resource: The Arts industry has reported a huge 333% increase in payment defaults compared to Q2 2019. Find out how registering a default can help you get paid faster.
