Australian Credit Bureau Illion has recently reported in their February 24 Economic Snapshot that a slow down in spending by Australian consumers at Cafes and Restaurants during recent months is beginning to show a significant rise in the average number of days to pay their suppliers.
Illion reports that over the last 4 months, Australian consumers have been spending 15 – 20% less at cafes and restaurants as the cost-of-living crisis continues to bite. Interestingly, Australians have continued their normal spending habits at pubs and bars however.
This slowdown has flowed through the café and restaurant sector putting pressure on cashflow and their ability to pay their suppliers. The is displayed in the number of businesses late to pay their suppliers increasing 48% year on year.
Who’s next in the line of suppliers that this wave might hit?
If you don’t like to gamble with cashflow, there are few things you can do to minimize the risk of a default by one of your customers.
- Have robust terms of trade – Set-out your expectations with new customers, making sure your terms of trade are appropriate for your business. Our business solution specialists can help.
- Credit check your new customers – Make sure you know who you are doing business with and ensure they are likely to meet their obligations. For just a few dollars we can give you a report that takes away the guess work.
- Don’t ignore unpaid invoices– Load your overdue debts and let us take care of it. Sometimes a single phone call or letter from EC Credit Control is all that is needed to make you the number 1 priority for payment from your customers.
And don’t forget, for every debt you load with EC Credit Control before 31 March 2024, you go in the draw to win a Weber Baby Q BBQ.
To sign-up and begin loading your overdue debts, simple hit the button below and follow the prompts.
For more information and any questions about our debt resolution services please contact us via the form below.
