December’s Credit Insights Report highlights both the challenges and opportunities businesses are facing. Rolling annual sales have declined, particularly when adjusted for inflation, with industries like construction under pressure. However, regions such as Christchurch are showing resilience and growth.
Arrears are rising, with 60DPD+ and 90DPD+ surpassing seasonal expectations. Liquidation and insolvency rates are also up, with winding-up applications increasing nearly 29% year-on-year, largely driven by the IRD’s tax collection efforts.
In this environment, credit risk management has never been more critical. The businesses best positioned for long-term success are those that are challenging their processes, improving risk management, and diversifying their services. While the outlook may seem grim, remember it’s always darkest before the dawn. Addressing these challenges now will make businesses stronger when conditions improve. Simply “hunkering down” and avoiding necessary change may stall recovery when the market stabilises.
The facts are clear: businesses that stay informed, manage credit risks proactively, and adapt their strategies will be better equipped to thrive once things improve.
Read the full report for a deeper look at the current economic environment. CreditWorks offers real-time data, tools, and reports to help businesses manage risk and better understand their customers’ credit profiles.
CreditWorks Group provides extensive, real-time credit data and historical insights, helping businesses understand the deeper credit risks and payment behaviours of their customers. Our secure and comprehensive services ensure that companies can make informed decisions based on a complete picture. Discuss with us today how we can help you with comprehensive credit reporting and monitoring of your customers.
Please note that due to the vast amount of data required to produce these reports, most of which is accessed from a multitude of external sources, there is an inevitable time delay in their generation. However we prefer to defer their publication in favour of ensuring greater accuracy.