Australian businesses worry about cash flow, with 31% indicating it is the issue most likely to impact their operations, according to Dun & Bradstreet’s latest Business Expectations Survey.
This follows last month’s company insolvencies report from ASIC, which revealed that inadequate cash flow or high cash use was the most common cause of business failure in the 2013–14 financial year.
D&B’s Business Expectations Survey show that 35% of businesses have had a customer or supplier become insolvent or otherwise unable to pay them during the year.
Trade suppliers are the most likely to be overlooked by businesses unable to meet all of their payment obligations, followed by a credit card and phone bill.
Here’s the full list:
Overall, business owners are optimistic about seeing a jump in sales during the run-up to Christmas, with retailers and the services industry lifting their forecasts for the final quarter of the year despite signs that consumer confidence in Australia is faltering.
The Dun & Bradstreet’s survey shows 47% of businesses expect higher sales levels compared to last year, while 11% forecast a decline and 42 per cent similar trade.
This positive outlook has lifted the sales expectations index to 36.2 points, up from 7.9 points at the same time last year.
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