Late payments continue to be on the rise, impacting various industries differently in the Australian economy. illion’s trade bureau helps report on these shifts by monitoring payment behaviour between businesses and suppliers.
Over the last 12 months, the Construction and Manufacturing industries have been stand outs, with a 49% and 31% increase in late payment times respectively.
Find the full breakdown of these industries, including by business type, in our Australian Economic Snapshot below.
Find out more in our Economic Snapshot.
Behind the Data: The who, what, where, when and why behind the data
Who: The analysis has been compiled by illion’s Head of Analytics Louis Tsang
What: The analysis and data is sourced from illion’s proprietary trade bureau. The trade bureau can show payments between businesses and suppliers and can highlight how late a company is paying another company beyond agreed terms.
Where: The focus is on Australian companies, but similar trends have been observed in NZ. illion has the largest commercial trade bureau program in Australia.
When: Over the past 12 months, the increasing trend of late payments has been observed across multiple industry segments. illion expects this trend to continue in the short term.
Why: Trade late payments is a strong leading indicator of risk and business failures. Businesses tend to fall behind in payments to other businesses and suppliers as they begin to struggle. Monitoring your portfolio using this risk metric will give you a heads up on any emerging risks.
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