Industry commentators are predicting that business insolvencies will steadily increase across 2022.
Court actions have been back at pre-pandemic levels, having jumped 58% over November, December and January compared to the year prior, as banks and the ATO end the Covid reprieve.
The perfect storm including supply chains issues with China’s management of Covid, the war in Ukraine, international tensions, inflation, the Great Resignation, and interest rate rises predicted to reduce discretionary household income by around 10% means that business costs are increasing whilst customer sentiment may be about to experience a downturn.
If you find yourself in a precarious situation, involve us sooner rather than later to work through options.
And even if these issues are not affecting you, remember that they may be affecting your customers, suppliers and others that you deal with so be wary of credit arrangements and continually assess your exposure to risk and keep it at comfortable levels.