With the Australian monetary cash rate projected to remain low for the foreseeable future and global economic growth trending at a lower than average pace, what does this mean for the confidence of the ‘everyday Australian’?
Despite the recent attempts to stimulate the economy by the RBA by the easing of monetary policy, the available data is actually projecting much of the same consumer conservativism.
An alarming statistic published recently showed personal insolvencies increasing by 13.7% in the June quarter of 2016 compared to the June quarter of 2015; figures of this nature have not been seen since 2009. In addition to this, business investment numbers are currently trending well below expectation leaving a big question mark over the heads of many.
Additional factors such as the lower exchange rate is said to be assisting the traded sector, however this is still not enough to improve sentiment on a holistic scale.
In the Credit and Mercantile industry, it seems evident that there is still an abundance of debt circulating within the economy, however, the measures of which are needed to collect the debts are becoming increasingly more complex for the creditor. In addition to this, a new regime is set to come into effect on 12 November 2016 whereby additional provisions have been made to protect consumers and small businesses from ‘unfair’ new contracts; no longer will the excessive indemnities contained within a new contract be the panacea of recovery.
It is no secret that debts have become increasingly more difficult to collect. The Australian love for credit does not seem to be going out of fashion anytime soon, so it has never been more important to seek help from professionals of whom are adequately exposed and educated in this forever changing industry; especially if cash flow is still the king in your organisation.
If your aged trial balance is now resembling a horror story, please do not hesitate to contact me on (07) 3102 6672 to have an obligation free discussion about our services.
NCS Collections Manager
Call 07 3102 6672