Business chases debt in 2011
14/12/2011
Australian businesses are reducing their exposure to credit risks as they struggle with cash flow problems, a report has found.
According to the Veda 2011 Credit Management in Australia report, 74 per cent of businesses have experienced issues such as slower payments and cash flow problems in the last year and 72 per cent of respondents said their business employed external collection agencies to retrieve outstanding debts in the last year.
Additional findings revealed 31 per cent of respondents are facing pressure to open new accounts with high risk in a bid to increase revenue and increase cash flow while obtaining credit guarantees from company directors is now a top priority for 67 per cent of Australian businesses, up from 37 per cent in 2009.
Source: Australian Banking & Finance
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