March data paints a mixed picture. Sales are holding steady with a 4.8% increase in invoice volumes, indicating demand remains strong in certain parts of the market. But behind that growth, pressure is building.
DSO has climbed to 47.2 days, the highest level in years. This delay in payments means less working capital and more exposure to credit risk. Arrears are rising, with more businesses slipping into the 60 and 90-day categories, especially in labour hire, manufacturing, and sub-trades.
Construction remains active, but momentum is slowing in some areas. Building consents have dipped slightly, and residential activity is under pressure. Insolvency activity is trending up, with early signs of distress in Auckland and Wellington.
Economic conditions remain tough. High interest rates and reduced government support are squeezing margins and liquidity. The result is a growing divide with strong sales on the surface and financial stress underneath.
Now more than ever, businesses need to look beyond top-line growth. Monitoring payment behaviour, credit risk, and early signs of distress is crucial to protecting cashflow.
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.