More and more Australian businesses are facing insolvency risk as trade payment defaults reached a record high in June due to the impacts of inflation and interest rate hikes.
According to a new report by CreditorWatch, a credit reporting agency, business-to-business trade payment defaults rose to 1,586 cases in June, up 52 percent from a year ago.
Credit enquiries, which occur when a creditor checks a potential customer’s credit report, surged by 161 percent in the year to June as companies tighten their due diligence processes and credit policies when conducting business.
While external administrations dropped during the month, they were 13 percent higher than the previous year’s figures and were likely to go up further in the coming months….