The Warning Signs Are Flashing:

Why Businesses Must Rethink Credit Management in 2025

Michael Bonk, Commercial Manager - Optimum Recoveries

Following a recent Queensland Future Leaders round table discussion on attracting financially healthy clients and the current state of “pay” across member businesses, I was prompted to reflect more deeply on what’s driving late payments and how we can be smarter in managing credit risk. The themes raised in that session inspired the thoughts below.

Late payments are increasingly becoming a strategic threat to the survival of Australian businesses.

And the latest data leaves no room for complacency.

In the last 12 months, ASIC recorded over 11,000 business insolvencies – that’s the highest number in nearly a decade. Meanwhile, AFSA reported a 27% rise in business-related bankruptcies.

Behind many of these failures is a common issue: poor cash flow, often worsened by delayed customer payments and reactive receivables management.

That’s where a fractional approach to credit management makes all the difference.

At Optimum Recoveries, we act as a fractional credit and collections partner – here when you need us, invisible when you don’t. Whether it’s prevention, receivables support, or recovery, we flex around your team to strengthen results without disruption.

The SME Reality: Struggling with Silence

The latest Small Business Pulse from ASBFEO shows:

• 44% of SMEs are impacted by late payments
• Many cite cash flow failure as a top threat
• Yet few have reviewed their credit terms or receivables strategy in the past year

It’s an operational risk that creeps up quietly and strikes hard.

Why Waiting Is the Most Expensive Option

Many businesses hesitate to act, fearing they’ll damage relationships or seem too aggressive.

But early engagement protects those relationships.

What’s truly expensive is waiting. When accounts age:

• The likelihood of recovery drops
• Admin time blows out
• Stress builds

A fractional partner like Optimum gives you the tools and capacity to act early without over-extending internal resources.

What Leading Businesses Are Doing Differently

More forward-thinking businesses now approach credit as a life cycle, not a last resort. They are:

• Aligning contracts with updated terms
• Registering interests via PPSR
• Building polite reminders into early workflows
• Tracking receivables in real time

This keeps finance teams focused on strategy, not stuck chasing payments.

Why the PPSR Still Matters

The PPSR remains underutilised, yet it’s powerful in securing credit risk.

A fractional advisor like Optimum Recoveries can review your approach and ensure your terms allow for correct registration – helping ensure you’re protected if things go south.

EOFY: A Natural Time to Reset

Don’t carry unresolved receivables or outdated terms into FY2026. Use this time to:

✅ Review what’s working
✅ Escalate what isn’t
✅ Reset with support that’s fast, discreet, and professional

Don’t Let Late Payments Define Your Year

There’s no shame in needing support – only risk in waiting too long.

Optimum Recoveries gives you expert support without adding headcount. We’re ready when you are.

View HERE our June/July snapshot - the Trends, Risks & Drivers

🔗 Optimum Recoveries – Your Fractional Partner for Credit Prevention, Receivables Support, and Recovery