Welcome FROM CEO The COVID-19 crisis is creating economic conditions
deep knowledge from industry experts to provide
never before seen by today’s credit professionals.
an unsurpassed analysis in respect of: z Historic insolvency trends
After an unparalleled run of growth, the Australian
z Trends in the lead indicators of insolvency
economy is facing significant contraction. For
z What these trends mean for you
almost 30 years credit growth in Australia has
Produced amid the most rapidly changing
been a constant. A generation of business leaders
economic conditions imaginable, this report
are unaware of the impact of a downturn or worse.
provides a valuable longterm resource for the
The economic threat posed by the Corona virus
interpretation of emerging trends along with
pandemic only serves to highlight the critical
insights central to determining how these may
value credit professionals provide to commerce
impact your credit operation. The report will
and enterprise through their ability to navigate
become a foundation against which trends and
uncertainty whilst managing cashflow, the
changes in years to come can be reliably measured.
lifeblood of all businesses. This, the inaugural Insolvency Risk Report, aims to
About the AICM
provide a comprehensive and detailed overview
Without our members, businesses are exposed to
of the underlying trends affecting credit and
reputational damage, poor cashflow management,
insolvency risk in Australia in 2020.
inefficient processes, the risk of regulatory intervention and the risk of not getting paid for
Commissioned in late 2019, the report came
hard won sales and services delivered.
about as a result of AICM members advising that uncertain economic headwinds would be the
The Australian Institute of Credit Management
number one challenge they expected to face in
(AICM) is Australia’s leading professional
the current year. We did not foresee the pandemic
membership body for over 2,600 commercial and
and the serious impact it will have on Australia’s
consumer credit professionals, and the only credit
financial security amid an already misfiring
industry-specific Registered Training Organisation
economy.
in the country. We are the voice of the credit management profession.
Drawing on the AICM’s extensive network of regulators, specialist industry bodies and
Our members are the custodians of cash flow.
key credit industry stakeholders, this report
They assess and mitigate credit risk in all sectors
summarises data from relevant public and private
and manage credit terms for the supply of goods,
sector sources, complimented by insights and
services and finance.
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AICM Insolvency Risk Report 2020
