CreditorWatch monthly Business Risk Index

CreditorWatch has published its latest monthly Business Risk Index (BRI) for February, with data on invoice payment defaults, a key measure of business stress, showing a 47 per cent increase for the 12 months to February 2025 as higher costs of inputs and softer demand over much of last year meant more businesses struggled to pay their trading partners.

CreditorWatch CEO Patrick Coghlan says it is a precarious time for businesses as many were already doing it tough, while the shadow of US tariffs now looms. “The expected slowdown in economic growth from the widespread US tariff regime will, unfortunately but inevitably, result in higher insolvencies.

After a tough couple of years managing higher inflation, interest rate increases and lower demand, I certainly hope Australia businesses are spared the worst of it. We encourage businesses to take steps now to manage that risk, whether it is reviewing credit policies, running a portfolio health check or monitoring customers more closely.”