(24 August 2018 – Australia) Nearly 10,000 small to medium businesses are on the brink of insolvency new data has revealed.
Data from one of Australia’s biggest insolvency firms, SV Partners shows there are 9,948 businesses with annual turnover of less than A$50 million that are at ‘high risk’ of insolvency, with political uncertainty and a downturn in property markets pinned as the main contributing factors.
Patrick Coghlan, managing director of credit reporting agency CreditorWatch, says there has definitely been a significant increase in the number of insolvencies for both incorporated and unincorporated businesses.
Mr Coghlan puts this down to the ever-present issue of payment times, saying a lot of SMEs are still finding it hard to get payments from suppliers on time.
Lengthening payment terms is also a constant theme highlighted in East & Partners SME research, with small businesses often feeling the squeeze from both customers and suppliers.