Credit managers are more upbeat about future economic conditions and 41 per cent report an increased demand for credit, according to an annual survey by Veda, the leading provider of credit information and analysis in Australia and New Zealand. Released to coincide with the 2015 Australian Institute of Credit Management (AICM) Conference, the Veda National Credit Managers Survey 2015 assesses the status of credit management in Australian businesses.
Veda National Credit Managers Survey 2015 Key Findings
- Only 30 per cent of credit managers indicated a negative impact from general economic conditions over the past six to 12 months, down from 60 per cent in 2014
- 47 per cent of participants expect future economic conditions to have a positive impact on business, up from 27 per cent in 2014
- The number of credit applications has risen for 41 per cent of credit managers and fallen for 19 per cent, leaving a net increase of 24 per cent, down from 27 per cent in 2014
- 70 per cent of credit managers indicated they had increased or tightened collections activity over the past six months; 59 per cent plan to do so over the next six months
- 65 per cent indicated that credit management resided in the finance department
- 87 per cent of credit managers indicated that they believe by 2020, credit management will always be involved in acceptance of customers
- 49 per cent agreed with the proposition that the credit management process will be automated by 2020
- 45 per cent of respondents believed the biggest future challenge of credit managers was to position credit management as a strategic partner
Moses Samaha, Veda’s General Manager, Commercial and Property Solutions, said the survey showed a continuing improvement in optimism since 2013. “Almost half (47 per cent) of credit managers surveyed indicated economic conditions would have a positive future impact on their business, up from 2014 when only 27 per cent were optimistic about the upcoming six to 12 months, and just 16 per cent of participants in 2013.
The Veda National Credit Managers Survey 2015 reported that demand for credit was rising for 41 per cent of respondents (down from 45 per cent in 2014) and falling for 19 per cent of respondents (up from 18 per cent in 2013).
The majority of the 250 participating credit managers were from the manufacturing, finance and insurance, construction, and wholesale trade industries. The 2015 survey had a special focus on the changing role of credit management. Participants were asked a series of questions about the impact of technology and the future role of credit management by 2020.
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