Competitive pressures, an extended period of under-investment in plant and equipment, high levels of debt, intense international competitive pressures and rising energy costs were the main factors that drove the Whyalla steelworks into administration in February 2025.

Global demand for steel is heavily influenced by changes in the business cycle. This is particularly as it relates to the construction sector, both for dwellings and non-residential buildings and infrastructure but it is also a critical input into the manufacture of cars, trucks, ships, whitegoods and machinery and the like.

As we enter 2025, it’s clear that businesses need to be more proactive than ever when it comes to managing overdue debts. The start of a new year offers a chance to reset your financial strategies, and getting ahead of collections now can make all the difference for your cash flow throughout the year. Late payments are still on the rise, and with insolvencies continuing at a high rate, there’s no time like the present to tackle overdue accounts head-on.

The end of January saw liquidators appointed to a relatively recently established wood products company on the outskirts of Melbourne. Unfortunately, a couple of its suppliers fell foul of the PPSR’s rule that registrations against companies acting as the trustee of a Trust, should be lodged against the ABN of the Trust rather than the ACN of the trustee.

NCI is thrilled to announce we have acquired a 40% stake in EFCIS, a UK-based specialist Trade Credit Insurance broker. This strategic partnership strengthens our ability to support clients with trade credit solutions across multiple regions, reinforcing our commitment to providing seamless global coverage and expert credit risk management solutions.

The annual NCI client survey was undertaken at the end of 2024, with one intriguing question being asked specifically to credit managers across Australia and New Zealand. The question:
‘What is your biggest business concern for 2025?’

TCRI decreased as anticipated in Q4, aligning with seasonal trends.

Stepping into 2025, Australian businesses face an increasingly complex landscape shaped by internal pressures and external uncertainties. Businesses must be prepared to tackle the challenges of customer insolvencies and bad debts head-on while safeguarding their own financial health.

As 2024 comes to a close, the Australian economy is navigating a complex landscape. Businesses are experiencing an increase in insolvencies and delays in payments.