Struggling companies are turning to debt collection agencies as a means to keep their company afloat in this struggling economic climate.
Australian debt collection agency, Dun & Bradstreet, reported a 20% rise in debt referrals during the first quarter of 2009, with average value of the debt increasing from $800 for the first quarter of 2008, to $1100 for the corresponding time frame in 2009. It is also worth noting that most debts are being referred 90 days after their due date – down from 120 days previously.
It is also interesting to note that while New South Wales and Victoria remain the largest areas of referral, the biggest increases in referrals have come from the Northern Territory (up 53%), Queensland (up 52%) and Western Australia (up 42%.) Companies in New South Wales have the largest average value of debt at $1300.*
*All figures were compiled by Dun & Bradstreet, a debt recovery agency in Australia.
