illion (formerly Dun & Bradstreet Australia) has been assessing the risk to Australian businesses for over 130 years and there are four key barometers we watch:
- The state of the Australian Receivables ledger and hidden risk
- How fast companies pay each other
- The amount of business start-ups, and
- The amount of tendering
illion sees rapid changes in all four measures.
‘Hidden risk’, the debt from people who are currently paying you on time but are exhibiting risky behaviour in the market, has increased to 6% of debt – a very sharp rise. Hidden risk is the key risk, where the increase in receivables and bad debt will originate, and is something illion can help to identify and manage.
The state of the Australian Receivables ledger and ‘hidden risk’
As well as monitoring late payment, it is critical to examine the risk in the ledger. Each month illion receives thousands of Receivables ledgers and illion has aggregated them and analysed by risk to show its view of the risk and opportunity on the Australian balance sheet.
Pressure in the system is building with the age profile of overdues deteriorating on prior year, and a dramatic increase in the risk of customers who may currently be paying on time.
illion can provide these analyses through our Portfolio Insight product for an individual Accounts Receivable ledger so that our customers can understand their risk and opportunity to maximise cashflow.
To read the full report, please click here