Veda, Australasia’s provider of commercial and consumer data intelligence and insights, announced on December 11th the results of its 2011 Credit Management in Australia report. As the countdown to 2012 continues, the decline in consumer spending is unsurprisingly hitting businesses’ cash flow, forcing credit managers to revaluate their payment plans and get tough on terms.
The results unveiled that 74% of businesses have experienced issues such as slower payments and cash flow problems in the last year and 72% of respondents said their business employed external collection agencies to retrieve outstanding debts in the last year.
Veda’s 2011 Credit Management in Australia report presents insights into how global and local economic factors are affecting the credit management processes of Australian businesses. The company conducted the survey among 220 credit managers from a cross-section of Australian industry. Veda works closely with a large proportion of Australia’s credit professionals which gives the company a detailed understanding of local credit management issues within a national and global context.
“Torn between imposing stricter payment plans and being forced to attract more high risk business, Australia’s credit managers are rapidly shaking off their ‘enforcer’ image as the bad guy chasing debts, evolving into business advisors taking a collaborative role in helping customers manage their credit,” said Moses Samaha, Veda’s Head of Commercial Risk.
Other key findings from the report include:
- To reduce their exposure to credit risk, 89% of respondents have undertaken measures to reduce their exposure to credit risk in the last year.
- Almost a third of respondents (31%) are facing pressure to open new accounts with high risk in a bid to increase revenue and increase cash flow.
- Obtaining credit guarantees from company directors is now a top priority for 67% of Australian businesses, compared to 37% in 2009.
- More than half of businesses surveyed intend to register security interests on debtors when the Personal Property Securities Register (PPSR) comes into effect in January 2012.
The 2011 Credit Management in Australia report was conducted by the Veda Commercial Risk team over a two week period in September 2011 through a combination of face to face interviews and online surveys.
To receive a copy of the report please email firstname.lastname@example.org.