Debts Hit Small Firms Survey

We are often told we must be busy right now. Fair comment. But if we are busy then how is this affecting our clients?

A recent survey by Veda Advantage was reported in the Dominion Post on 10 Oct 2011. The report reads:

"The country's small and medium size businesses in the construction, property/business and manufacturing industries have been the hardest hit by bad debtors this year"

"Most bad debts were under $10,000 but 17 per cent of firms surveyed advised they were carrying bad debts worth more than $10,000."

We would agree with these results although our sample size is a little smaller. The report also goes on to say:

"It was disturbing 48 per cent of firms said they did not run a trade credit process, meaning they were not assessing risk when they advanced credit and they were not keeping a close eye on a client's ongoing ability to pay."

Again, we would agree that these numbers are disturbing although we have found a number of our client's are now much careful with who they deal with and are obtaining credit reports and taking notice of industry scuttlebug. We also have a number of client's who contact us for any market infomation we may have. We have no problem with this and welcome this opportunity.


The other issue of concern for businesses in the construction industries is how many do not seem to be taking advantage of the Construction Contracts Act. For more infomation about the act see my blog How to save yourself from the next Signature Homes debacle