Insolvency risk management should be core to business operations because default rates will rise steeply as mortgage holders come off fixed-rate loans, according to the latest CreditorWatch data.
It said external administrations have returned to pre-pandemic rates and defaults will hit 5.8 per cent this financial year so businesses need to actively minimise risk exposure.
FY24 will be difficult for Australian businesses and consumers, CreditorWatch chief executive Patrick Coghlan said. By September 2023, the full impact of the RBAs 12 cash rate rises will have been passed on and its going to affect about 40 per cent of Australian households. In the second half of this calendar year, we have more people moving off fixed rates than in the…
Read the full article at: https://www.accountantsdaily.com.au/business/18835-businesses-should-plan-for-rising-default-rates-insolvency-risk