Credit and Collections Australia: Liquidity, Insolvencies and the ANZ Outlook

Jul 20, 2026 By Peter Morgan

Credit and collections used to sit quietly behind the month-end close. That is no longer true. Across Australia and New Zealand, late payments, trade defaults, tax arrears and elevated insolvencies are forcing CFOs, credit managers and boards to treat debtor management as a front-line liquidity discipline, not a back-office task.

For finance leaders, the pressure is practical. Cash conversion matters again. Customer risk is harder to read. Credit teams are being asked to protect margin, support sales and use data more intelligently, often with leaner headcount. The Australian Institute of Credit Management (AICM), commercial credit bureaus and major advisory firms are all pointing in the same direction: disciplined credit policy, stronger collections capability and better use of payment data are now core finance priorities.

14,722 companies entered external administration in Australia in 2024-25, up 33.2% year on year, per ASIC.

46 days median days sales outstanding across 500+ Australian listed companies in FY25, per KPMG working capital analysis.

3,080 formal corporate insolvency appointments in New Zealand in 2025, up 12% year on year, per Deloitte analysis of Companies Office data.

Why credit and collections matter more now

The cycle has shifted. After a long period of low rates and relatively forgiving debtor markets, Australian and New Zealand businesses are operating with higher funding costs, slower consumer demand in parts of the economy and more visible stress in trade credit.

CreditorWatch, one of Australia’s most widely cited commercial risk data providers, has reported late business-to-business payments at multi-year highs, with a growing share of invoices slipping beyond 60 days overdue. That matters because long-dated arrears are a leading indicator of insolvency, often appearing well before formal appointments accelerate. CreditorWatch

At the same time, ASIC reports that 14,722 companies entered external administration in Australia in 2024-25, up 33.2% from 11,053 in 2023-24. The rate has moderated in recent months, with ASIC noting insolvencies levelling out at around 1,200 to 1,300 per month, but the absolute level remains elevated relative to recent years. ASIC

Across the Tasman, Deloitte’s New Zealand Insolvency Trends 2025 report recorded 3,080 formal corporate appointments in 2025, a 12% year-on-year increase and the highest level in 15 years. Construction, hospitality and other consumer-exposed sectors remain under pressure, with tighter financial conditions and higher operating costs cited as key drivers. Deloitte New Zealand

For CFOs, the message is clear. Profit on paper is not the same as cash in the bank. Credit and collections are where that gap shows up first.

AICM: the profession at the centre of the shift

If one body sits at the centre of credit and collections in Australia, it is the Australian Institute of Credit Management.

Founded in 1937, AICM describes itself as Australia’s leading professional member body for commercial and consumer credit management. It supports education, certification, advocacy and professional standards for credit teams across the country. Its Certified Credit Executive (CCE) program recognises current knowledge and practice in the credit industry and is offered only through AICM. AICM

Nick Pilavidis FICM CCE has led AICM as Chief Executive Officer since 2014. Under his leadership, the institute has focused on member value, sector advocacy and the modernisation of credit practice, including digital invoicing, data-led decision making and stronger governance across commercial credit functions. Pilavidis is also Australia’s independent member on the Australia-New Zealand Electronic Invoicing Board (ANZEIB), reflecting AICM’s push to improve invoice accuracy, payment visibility and administrative efficiency across the region. AICM

That matters commercially. Weak invoicing and poor master data create disputes, delay payment and inflate days sales outstanding. AICM’s work on eInvoicing and digital credit management is not a side issue. It is part of the infrastructure needed for faster, more reliable cash conversion.

AICM’s annual National Conference has run for more than 20 years and is widely regarded as Australia’s largest gathering of credit and finance professionals. The 2026 event, themed Credit in Motion: Lead the Change, will be held in Brisbane from 14 to 16 October 2026, with early bird registration open to members and non-members. The program covers regulation, technology, leadership and practical credit management, and includes Australia’s only credit-specific trade expo. AICM

The Australian Credit Forum provides another important industry connection point. Established in the early 1970s, it brings senior credit professionals and related specialists together to exchange ideas, strengthen credit knowledge and consider legislative changes that may affect credit policy and practice. Australian Credit Forum For employers, active participation in professional forums can be a useful signal that a credit leader is current, connected and serious about standards.

What the credit reference agencies are showing

Australian CFOs and credit managers now have access to far richer payment and failure data than a decade ago. Established providers including CreditorWatch, Illion and Equifax Australia feature prominently in commercial credit decisions, while newer entrants are widening the market.

CreditorWatch: trade defaults and early warning signals

CreditorWatch publishes one of the most closely watched proprietary datasets in the market, including trade payment defaults, late payment trends and business risk index commentary.

Its research has highlighted several themes relevant to credit teams:

Late payments reaching a six-year high, with more invoices moving beyond 60 days overdue.
Trade payment defaults and ATO tax defaults acting as leading indicators ahead of formal insolvency.
Sector stress spreading beyond construction and hospitality into areas such as transport, retail and essential services during recent cost shocks.

CreditorWatch reported 14,716 business insolvencies in FY25, up 33% year on year, with hospitality, construction and other services accounting for more than half of failures. While payment defaults eased at points in 2025, insolvencies remained historically elevated, reinforcing the need for proactive credit monitoring rather than reactive collections. CreditorWatch

For credit managers, the practical lesson is to treat bureau alerts, default registrations and deteriorating payment behaviour as workflow triggers, not background noise.

Illion: portfolio risk and payment pattern analytics

Illion, one of Australia’s established commercial credit bureaus, provides tools such as illion Direct for onboarding, portfolio monitoring and predictive late payment and failure scoring. Its platform combines company financial data, payment patterns, collections activity and director intelligence to help credit teams assess risk before extending terms and to monitor portfolios as conditions change. Illion

That is particularly useful for businesses with large debtor ledgers, multiple entities within customer groups, or exposure across both Australia and New Zealand.

Equifax: benchmarking receivables performance

Equifax Australia’s Debtor IQ platform combines bureau data with a company’s own receivables ledger to benchmark customer payment behaviour, identify high-risk accounts and track collections performance over time. Features include portfolio risk scoring, industry payment comparisons and segmentation by region, sector or business unit. Equifax Australia

For CFOs, the value of these platforms is not simply “checking a customer”. It is building a repeatable view of which accounts are drifting, which sectors are slowing, and where internal process failure is contributing to delayed cash.

CreditProtect: Colin Porter’s next-generation bureau

Australia’s credit data landscape is not standing still. In June 2025, CreditProtect launched as a new commercial credit bureau aimed squarely at SMEs that want affordable, self-service credit intelligence without legacy bureau complexity.

The company was founded by Colin Porter, the fintech entrepreneur also known for founding CreditorWatch and Avenue Bank. On launch, Porter said CreditProtect was entering the market to offer “real value, powered by data and scale”, with an AI-optimised platform designed to give smaller businesses access to insights “captured through AI” at a more affordable price point. CFOtech Australia

CreditProtect is backed by strategic investment and data support from Experian, drawing on illion commercial data alongside official sources such as the Australian Business Register, courts and ATO tax default information. Its reports include company records, court judgments, payment defaults, director details and credit score movements, and are approved for use with leading trade credit insurers including QBE, Allianz Trade and Atradius. CreditProtect

For credit teams, the emergence of CreditProtect adds another layer of choice in how businesses onboard customers, monitor exposure and justify discretionary limits. It also reflects a broader trend: credit decisioning is becoming faster, more digital and more accessible outside large enterprise finance functions.

Debt recovery and receivables management across ANZ

Credit policy and collections do not end at the ledger. When accounts move into arrears or formal recovery, Australian businesses rely on a mature ecosystem of debt recovery firms, digital receivables platforms and hybrid collection models that blend technology with experienced people.

ARMA Group and Credit Clear: listed fintech meets collections scale

ARMA Group (often written A-R-M-A) is one of Australia’s better-known receivables management businesses. Founded in 2015 with a focus on digitising collections and improving customer experience, ARMA joined Credit Clear Limited (ASX: CCR) when the listed group completed its acquisition in February 2022. ARMA now operates within the Credit Clear group alongside its digital, legal and related recovery services. ARMA Group

Andrew Smith, ARMA co-founder, is now CEO and Managing Director of Credit Clear. Credit Clear In ASX disclosures, the group describes him as a leading voice in Australia’s collections sector, with deep industry networks and a technology-driven approach to receivables management. Credit Clear’s FY25 results reported record revenue of $46.9 million, up 12% year on year, with underlying EBITDA up 76% to $7.4 million as the hybrid digital-plus-collections model scaled. Credit Clear ASX reporting

ARMA’s published positioning is instructive for CFOs and credit leaders. The business describes a shift “to a more digital method” of collecting payments, combining AI, behavioural analytics and respectful customer engagement to protect both debtor outcomes and client brand reputation. On its website, Smith is quoted saying: “We’re going through a shift in the ways companies collect payments to a more digital method. By implementing AI solutions and engaging with respect and empathy we preserve not only customer integrity but the brand reputation of our clients.” ARMA Group

ARMA says it supports more than 1,000 Australian organisations across banking and finance, energy and water, health, education, infrastructure, insurance and telecommunications. That scale matters for employers hiring into credit and collections: the market now rewards leaders who understand both policy governance and digital customer experience.

Capital Credit Solutions: debt acquisition and ethical recovery

Capital Credit Solutions, founded in 2019, is led by Trent Vieira, whose professional profile identifies him as founder and Managing Director. Trent Vieira The firm focuses on debt acquisition, receivables management and mercantile agency recovery for corporations and financial institutions, operating on a no collection, no commission basis for agency work. Capital Credit Solutions

Vieira’s background includes a long senior career in the Australian collections market, including co-CEO leadership at ACM Group before its sale to Collection House in 2019. Capital Credit Solutions emphasises ethical engagement, hardship identification, compliant communications and workable repayment pathways rather than purely adversarial recovery. Its published materials stress prevention through strong terms of trade, credit applications and director guarantees, reflecting a view shared by many experienced credit leaders: the best recovery outcome is often the debt that never becomes a problem. Capital Credit Solutions

AMPAC Debt Recovery: technology-led B2B collections

AMPAC Debt Recovery, where Mark Logue MICM serves as Joint Managing Director, is another established Australian operator with more than 30 years of debt recovery and credit reporting experience across commercial, government, strata, education, insurance and finance segments. AMPAC

AMPAC positions itself as a technology-driven collection agency, formed in 2010 to reduce the time and cost of recovering overdue commercial debt through digital receivables tools, national coverage and international recovery capability via the EOS Global Collection Network. For trade credit providers, that model reflects a wider industry move away from manual chasing toward platform-led recovery, dispute resolution and account management. AMPAC

Logue’s MICM credential also underscores the value AICM-aligned professional standards still carry in collections leadership, particularly where client-facing recovery must be commercially firm and reputationally defensible.

These organisations represent different parts of the credit and recovery market, from bureau intelligence and debt acquisition to outsourced collections and end-to-end receivables technology. Their inclusion illustrates how the market is changing. It is not a recommendation of one provider over another. Employers should assess data coverage, compliance, customer treatment, integration, security and commercial fit before selecting a partner.

Liquidity and working capital: the CFO view

Credit and collections sit inside a wider working capital story. That is where KPMG, PwC and McKinsey research becomes directly relevant.

KPMG: Australian working capital is still under pressure

KPMG Australia’s Working Capital Trends analysis of more than 500 Australian public companies shows the national cash conversion cycle deteriorated from 58 days in FY21 to a peak of 71 days in FY24, before improving to 62 days in FY25. KPMG Australia

Key findings include:

Days sales outstanding remained broadly stable at around 46 to 47 days across the five-year period, suggesting receivables discipline has not materially improved despite tighter liquidity conditions.
Days inventory outstanding peaked at 76 days in FY24 before easing to 68 days in FY25.
Days payable outstanding increased to around 52 days in FY25, even as policy attention has focused on faster payment to small business suppliers under the Payment Times Reporting Act 2020.

KPMG’s Working Capital Advisory practice, led in Australia by specialists such as Vince Dimasi, emphasises that profitable businesses can still trap cash in slow collections, excess stock and inefficient payment processes. For credit teams, that means receivables performance should be measured with the same rigour as inventory and payables. KPMG Australia

PwC: liquidity is a resilience issue, not just a reporting line

PwC Australia’s CFO agenda for 2026 highlights compounding disruption across regulation, technology, geopolitics and capital allocation. While much of the public commentary focuses on AI and reporting reform, the underlying finance message is that CFOs need stronger visibility over cash, risk and operational discipline. PwC Australia

PwC’s global working capital research also warns against treating longer collection cycles as a benign “new normal”. Rising days sales outstanding can signal weakening payment morale and unreliable cash conversion, even when headline working capital metrics look stable. PwC

For Australian credit functions, that supports a tighter link between collections KPIs, liquidity forecasting and board reporting.

McKinsey: collections is a cross-functional cash lever

McKinsey’s working capital research consistently argues that receivables, payables and inventory should be managed as one system, with clear KPIs owned across finance, sales, operations and procurement. McKinsey & Company

On collections specifically, McKinsey notes that organisations can use data and automation to segment customers by payment behaviour, prioritise at-risk accounts, tighten dispute management and reduce overdue balances without damaging commercial relationships. Its more recent work also points to machine learning and AI-assisted receivables workflows, including earlier identification of accounts that may need credit holds, revised terms or prepayment. McKinsey & Company

The cultural point matters for hiring. McKinsey stresses that cash management is not owned by finance alone. Credit managers who can work credibly with sales, customer service and operations are far more valuable than those who only chase overdue invoices after month end.

Insolvencies: what the official data says

Australia

ASIC’s insolvency statistics remain the authoritative source for corporate failure trends in Australia. Beyond the FY25 uplift, ASIC’s industry and regional series help credit teams understand where stress is concentrated. Construction, accommodation and food services, and other services have featured prominently in recent failure data, although CreditorWatch and ASIC both note that pressure is broadening across the economy. ASIC

Two credit-specific signals deserve attention:

Trade payment defaults. When counterparties register or report payment defaults, that often precedes external administration.
ATO tax defaults. Rising tax arrears can indicate cash stress before a business formally fails, and may affect recovery outcomes for unsecured creditors.

CreditorWatch has repeatedly highlighted both indicators as forward-looking measures credit teams should monitor monthly, not quarterly.

New Zealand

New Zealand’s Companies Office publishes monthly and annual statistics on liquidations, receiverships and voluntary administrations. Deloitte’s 2025 review noted particularly strong fourth-quarter appointment activity, with enforcement, funding costs and sector-specific margin pressure all contributing to the uplift. Companies Office New Zealand

For Australian businesses with New Zealand subsidiaries, franchise networks or cross-border customers, the lesson is to avoid treating NZ credit risk as a smaller version of the Australian ledger. Local bureau data, insolvency trends and tax enforcement patterns need separate monitoring.

What good credit and collections looks like in 2026

The best credit functions we see in the market share several traits:

Clear policy, applied consistently. Credit limits, payment terms, escalation paths and write-off authority are documented and understood by sales and finance.

Earlier intervention. Disputes, billing errors and promise-to-pay breaches are managed inside the ledger cycle, not after 90 days.

Data-led portfolio reviews. Monthly reviews use bureau data, internal ageing, industry benchmarks and macro indicators such as insolvency trends and sector default rates.

Strong stakeholder communication. Effective credit managers explain risk to sales without becoming a blocker, and they can present credibly to CFOs and boards.

Professional standards. AICM membership, CCE accreditation or equivalent continuous learning signals technical depth and ethical practice.

Technology with purpose. eInvoicing, workflow automation, predictive scoring and integrated ERP credit modules are useful only when tied to process ownership and KPIs.

Questions CFOs should ask their credit function

What is our days sales outstanding trend by segment, and how does it compare with peers?
Which customers have deteriorated in bureau scores or payment behaviour in the last 90 days?
Are billing disputes and credit holds slowing collections unnecessarily?
Do we have enough senior coverage for escalations, restructures and insolvency events?
Is our team current with AICM standards, regulation and digital credit tools?

Hiring credit and collections talent in a harder market

Demand for experienced credit professionals is rising at the same time as failure risk is elevated. That creates a difficult hiring market for CFOs and HR leaders.

Roles under pressure include:

Credit managers and team leaders with trade credit insurance, unsecured limits and dispute resolution experience.
Collections specialists who combine firm escalation capability with commercially sound customer communication.
Credit analysts who can interpret bureau data, financial statements and sector risk indicators.
Group credit and AR managers who can standardise policy across divisions, states or countries.
Financial controllers and CFOs with genuine working capital ownership, not just reporting accountability.

When hiring, technical competence is only the starting point. The most effective credit leaders combine policy discipline, data literacy, stakeholder influence and calm judgement under pressure. In the current cycle, they also need enough sector awareness to know when a slow payer is a process problem, a temporary squeeze or the early sign of insolvency.

AICM credentials, conference participation and engagement with networks such as the Australian Credit Forum can help employers distinguish committed professionals from generalist finance staff who have only touched debtors occasionally.

For senior appointments, especially group credit leadership, regional CFO roles or turnaround environments, a focused search often surfaces candidates who are not actively applying but are open to the right mandate. That can be decisive when the cost of a weak appointment is measured in bad debt, lost cash and management distraction.

Hiring credit, collections or senior finance leaders?

Byron Thomas Recruitment supports executive search and senior finance hiring for businesses across Sydney, Australia and New Zealand. We help employers define the brief, test the market and reach credit managers, financial controllers and CFOs who understand liquidity, governance and commercial execution.

Talk to Byron Thomas Recruitment about executive search

Practical takeaways

For boards and CEOs: liquidity risk is increasingly a credit policy issue, not just a banking issue.

For CFOs: receivables performance deserves the same management attention as inventory, capex and payables.

For credit managers: bureau data, ATO trends and trade defaults should drive earlier action, not retrospective write-offs.

For HR and talent leaders: credit and collections hires need commercial judgement, not just assertiveness on the phone.

For candidates: AICM membership, CCE accreditation and current sector knowledge are becoming stronger differentiators in a risk-heavy market.

Sources

credit and collectionsliquidityinsolvenciesworking capitalAICMCFOAustraliaNew Zealandexecutive search

Podcasts