In the first half of 2023, illion observed a considerable increase in average late payments by both Australian and New Zealand businesses.
However, lower business confidence and a poorer business outlook in Australia compared to New Zealand is now being reflected in late payment metrics.
Discover what our latest bureau data is revealing in our Economic Snapshot below.
Behind the Data: The who, what, where, when and why behind the data
Who: The analysis is compiled by our Head of Analytics at illion Louis Tsang.
What : The analysis and data is sourced from illion’s proprietary trade bureau. The trade bureau can show payments between businesses and suppliers and can highlight how late a company is paying another company beyond agreed terms.
Where : illion’s trade bureau program covers both Australia and New Zealand businesses.
When : Similar increasing risk trends have been observed in 2023, but starting to diverge across the two countries in 2024, reflecting the differences in the two economies and how business outlook differs.
Why : Trade late payments is a strong leading indicator of risk and in particular business failures and insolvencies. Businesses tend to fall behind in payments to other businesses and suppliers as they struggle and monitoring your portfolio using this risk metric will give you a heads up on emerging risks.
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