There area number of positive signs that Australia’s economy has rebounded from the significant impacts of Covid.
However, amid the positive economic outlook lies a number of uncertainties that may continue to be disruptive for business. Most obviously is the ongoing Covid Pandemic, which despite being relatively under control within our borders, continues to run rampant internationally. Latest information provided by the government indicates international travel will not occur (on a large scale) in2021. The ongoing impact this will have on a number of key Australian Industries (tourism, education etc) has the potential to flow into broader economic challenges.
Perhaps more significantly, is the number of Government policies, swiftly implemented to protect businesses and the economy, which are now being phased out. This unwinding of Government support has the potential to put many businesses under financial pressure, and could result in an increase in businesses becoming insolvent, or going into administration.
Daniel Turk, Partner – Commercial at Turks Legal, outlines the upcoming threats to business:
For businesses, managing the risk of a customer insolvency is a critical part of protecting your own balance sheet. Keeping a close eye on debtors, minimising credit terms, and maintaining regular communication with customers are all simple ways to monitor and minimise risk. Businesses with exposure to significant creditors(by number or value), now might be the right time to consider a Trade Credit Insurance policy to give you more certainty on your debt ledger.
Please contact Charles for more information at email@example.com or on +61 2 8274 8138