Higher interest rates, fuel costs and shifting economic conditions are changing Australia’s credit-risk landscape. The latest CreditorWatch outlook reveals where insolvency and default risk is emerging, which sectors warrant closer attention and the early-warning signals finance and credit leaders should be watching now.
Expert analysis from Ivan Colhoun, Chief Economist at CreditorWatch, and James O’Donnell, Managing Director at Open Analytics.
Single-director companies recorded a 6.99 per cent 90-day default rate in the analysed non-bank asset-finance pool, compared with 4.70 per cent for sole traders.
Transport, postal and warehousing recorded the highest industry default rate in the asset-finance data pool at 6.4 per cent, narrowly ahead of food and beverage services at 6.3%.
In many sectors, businesses with an ATO tax default above $100,000 have a 20 to 30 per cent probability of insolvency over the following 12 months.
Risk does not move evenly across every sector, customer or portfolio. Get the data and analysis you need to identify changing conditions, challenge assumptions and strengthen your credit-risk approach.
