I recently watched a presentation by NCI’s Economic Expert, Stephen Koukoulas. Various charts detailing statistics since 2009, showed a roller coaster ride on many economic factors. In fact, many of these charts showed significant falls in 2020, significant increases during 2021 and 2022, and now significant falls in 2023.

The broadly based but moderate slowing in the Australian economy continues to impact the NCI Trade Credit Risk Index. The TCRI rose 1 per cent in the September quarter to reach its highest level in three years, which was during the early stages of the COVID pandemic. It has risen in six of the past seven quarters.

You might be wondering, "I already have trade credit insurance, so why should I bother with the Personal Property Securities Act (PPSA)?" The answer is that compliance with the PPSA should be seen as a complement to your credit insurance. Together they work to reduce the risk of loss.

The broader economic slowdown has impacted the hospitality sector with consumer spending on food and in bars, restaurants and cafes slowing down as the impact of interest rate increases and cost of living pressures hit household budgets.

It has been a very busy few months in the Trade Credit Insurance industry along with the wider Australian economy. Our Trade Credit Risk Index rose in Q2 to its highest level since 2020, an indication that the economy is starting to feel the pinch.

China, our foremost trading partner, receives a lion's share of our natural resources, maintaining its position as the world's second-largest economy. However, the narrative is shifting in 2023.

Many businesses are shocked when they receive a letter from a liquidator advising one of their customers have become insolvent and they won’t be paid. The trade receivables of a business can often be their largest asset. It is also the greatest means of cashflow and ability to pay your supplies.

The NCI Trade Credit Index increased in the June quarter 2023 as the effects of the broader economic slowdown and tighter monetary policy settings from the Reserve Bank of Australia impacted the cash flows and profitability of the business sector.

Do you have equipment on order or are you looking to purchase new gear soon?
We encourage businesses to chat to their finance brokers and accountants on how to take advantage of the government instant asset write off. With these ending in just under six months, there’s potential for businesses to see significant savings with some strategic planning.