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A Word From The Managing Director: Kirk Cheesman

2 Minute Read
Written by Kirk Cheesman
28 May 2024

A Word From The Managing Director: Kirk Cheesman

The company default landscape in Australia has experienced a significant shift, with March 2024 witnessing a record number of insolvencies. According to recent data from ASIC, this surge underscores the increasing financial distress among businesses and individuals alike.

When comparing our NCI Claims data with ASIC insolvencies, we observe a significant increase in both. This graph highlights the strong correlation between these two elements. The reasons behind this spike are multifaceted, including lingering economic impacts from global events, rising interest rates, and the increasing cost of living. Which is likely to continue for the remainder of 2024.

So, what does this mean for you?

  1. Credit assessment and opening new accounts or increasing existing client credit levels requires further scrutiny!
  2. Be vigilant in keeping to your processes when accounts become overdue and implement appropriate collection activities.
  3. Consider seeking additional security, or at minimum, ensure you register your security interests (over goods provided) on the PPSR.

As companies and individuals grapple with these financial challenges, the role of effective debt collection becomes paramount. At NCI, we understand the critical importance of managing and recovering debts efficiently. Our specialised services are designed to alleviate the burden of unpaid debts, allowing businesses to maintain cash flow and focus on their core operations. Being a third party, we can undertake the collection actions, whilst you seek to keep an ongoing commercial relationship with the client (if you want to!) into the future.

With the EOFY fast approaching, now is the perfect time to address any outstanding overdue debts. Our expertise in debt recovery can help you minimise losses and reduce bad debt provisions for 30 June reporting.

Free Economic Update webinar:

NCI invite you all to join our upcoming webinar featuring NCI’s esteemed economist, Stephen Koukoulas, alongside our very own Prudence Chang. This insightful event will delve deep into the recent federal budget, providing analysis of its key elements and discussing its far-reaching implications for Australian trade credit suppliers. This webinar is a must-attend for anyone involved in trade credit, finance, or business management, as it will equip you with the knowledge and strategies needed to adapt and thrive in the current economic climate. Don’t miss this opportunity to gain expert insights and stay ahead of the curve, register here.

Kind regards,


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