MARKET INSIGHTS FROM EQUIFAX AND WHAT THEY MEAN FOR SER PARTNERS

Michael Calagis
15 May 2025

SER’s National Credit Manager, Michael Calagis, recently attended the Equifax Quarterly Insights Webinar.

HERE ARE SOME RELEVANT TAKEAWAYS:

1. Asset finance applications fell 2.3% year-on-year — a smaller drop than previous quarters, indicating early signs of stabilisation.
2. South Australia led the country with a 12% rise in applications, while most other states were flat or down.
3. Business credit scores fell by an average of 10 points over the year. SMEs now average 789 vs 807 for large corporates.
4. Insolvencies rose 28% year-on-year. Construction leads in volume, followed by hospitality and retail — though hospitality is worst-affected on a per capita basis.
5. The ATO has listed 30,000 entities with an average default of $410K. Encouragingly, 28% of these are removed within six months when businesses engage to resolve or manage their debt.

WHAT THIS MEANS FOR YOU
In a climate of tighter credit and rising financial pressure, vendor finance plays a critical role in supporting sales and managing risk. Here are five key tips:

1. Use credit checks wisely – Declining scores make it vital to vet a customer’s credit early, if you are unsure about a customer’s credit you can arrange a pre-approval with our staff.
2. Offer flexible finance – SER can structure funding to suit tougher conditions and help you attain credit approval for your clients.
3. Monitor high-risk sectors – Pay close attention to customers in the construction, hospitality, and retail sectors. SER will usually find a solution but may not be able to auto-approve deals in these industries.
4. Lean on SER’s experience – With SER’s 25+ years in vendor finance and over 120 years in managerial experience, we can help you navigate credit challenges.
5. Encourage ATO engagement – Customers with tax debts should act early; many defaults are resolved through communication.

For more tailored finance solutions or support assessing customer risk, reach out to your SER contact today.