CreditWorks Group

August 2025 brought steady sales but look closer, growth is flat. Margins are tight. Debt is climbing. Payment cycles are stretching.

Here is what is happening:

- Debt and Cash Flow: Arrears are steady. DSO is rising across trade suppliers.

- Sector Signals: Construction stabilising. Manufacturing and Food & Beverage steady. Plumbing and Electrical under repayment pressure. Retail disciplined.

- Insolvency Trends: IRD leads 78 percent of winding-up filings. Corporate and personal insolvencies are rising.

- Regional Divergence: North Island is behind South. South Island shows steadier pipelines.

The surface is calm, but businesses must act. Smarter credit monitoring, proactive engagement, and disciplined risk management are essential heading into Q4.

Read the full August Insights Report to see the data, trends, and what your business can do to stay ahead.

Read the report here:https://creditworks.co.nz/wp-content/uploads/2025/10/CreditWorks-Insights-August-2025-month-end.pdf

July’s market data shows an economy that looks steady but carries underlying pressures. Nominal sales are holding, but inflation-adjusted growth is flat and margins are under pressure. Industries are diverging, with some sectors performing strongly while others face volatility and rising debt. Insolvency activity remains elevated, and construction shows mixed signals across regions.

Key takeaways
- Manufacturing growth: Christchurch 3.6% MoM, Wellington 1.1% MoM
- Arrears: Food & Beverage +2.5%, Concrete & Steel -1.8%
- Total debtor balances +1.7% MoM
- 90-day arrears +0.37% YoY
- IRD driving 67% of winding-up applications

Sharing your data with Creditworks gives you the visibility to monitor risk, act early, and protect your business before issues escalate.

Read the full report here:https://creditworks.co.nz/wp-content/uploads/2025/09/CreditWorks-Insights-July-2025-month-end.pdf

May’s data shows a market shifting gears steadily but cautiously. Sales have picked up after April’s stall and arrears are easing across most sectors and regions. But beneath these surface improvements, risk remains.

Sector performance is uneven. Construction is flat on average while Food and Beverage sees strong sales but rising arrears. Manufacturing and concrete face ongoing challenges while Christchurch continues steady growth. Different industries are adjusting at different speeds.

Businesses are tightening credit. Days Sales Outstanding are falling as companies collect faster and offer less credit, driven by Solvency Anxiety - the growing concern about customers’ financial stability, which is prompting tighter terms, faster collections, and more cautious credit decisions.

Solvency Anxiety is founded. Winding up applications are up nearly 24 percent year on year, with bad debts rising at a similar rate. These are clear signs many businesses are struggling to stay ahead of risk. For many, if not all, it’s not a question of if but when. This anxiety does not stimulate growth.

This pressure is reflected in insolvency figures that remain above long-term averages. Company insolvencies and winding up applications are tracking at levels not seen since 2011. While personal insolvencies have been stable so far, they are expected to rise alongside corporate failures. Low business confidence and a soft property market suggest these risks will persist through 2025.

In this environment, sharing accurate credit data with CreditWorks is essential. It turns solvency anxiety into insight, and keeps credit flowing to reliable customers, managing risk without stifling growth.

Read the latest insights: https://www.dropbox.com/scl/fi/3n8l3ngpsarlr8w9h5vxi/CreditWorks-Insights-May-2025-month-end.pdf?rlkey=l81umy1vfd3pye3wh1fqjw4b1&e=1&st=zvtu1aag&dl=0

April showed a slowdown across much of the market. Sales remain behind 2024 levels, partly due to fewer trading days, but the real story is beneath the surface. Credit risk is quietly building, even as some arrears figures improved slightly month-on-month.

Businesses are holding less debt than last year, reflecting a more cautious approach focused on stability over growth. At the same time, Days Sales Outstanding (DSO) is creeping up across industries like Roofing, Concrete, and Residential Building, signalling longer wait times for payments and added strain on cash flow.

Liquidations
Winding-up applications dropped slightly from March but remain over 24% higher than this time last year. Bad debtor volumes fell for the first time in months but still sit nearly 30% above 2024 levels. It’s not a market crashing down but a selective one, where businesses are watching cash flow more closely and becoming more selective about who they trade with.

Media commentary focuses on rising insolvencies to indicate an industry faltering but often misses the main motivator. The IRD has shifted from COVID cuddles to cracking down on historic debt, driving a considerable share of winding-up applications. This tougher stance reflects overdue accountability rather than a widespread cash flow collapse and doesn’t necessarily signal an increase in systemic industry risk. Meanwhile, personal insolvencies remain subdued and voluntary liquidations have dipped, highlighting a move toward forced insolvencies.

Sectors
Retail and Food & Beverage sectors performed well, particularly in Christchurch and Wellington, while some manufacturing segments show signs of stabilising. However, construction-linked sectors, including Concrete and Plumbing, face challenges with rising DSO and slower collections.

The evolving credit environment demands businesses stay sharp. Real-time monitoring of customer payment behaviour, tighter credit policies, and firm follow-up will separate those who stay in control from those caught out.

Read the latest insights: Knowing your customers’ financial health is no longer optional.
https://creditworks.co.nz/wp-content/uploads/2025/06/CreditWorks-Insights-April-2025-month-end.pdf

March data paints a mixed picture. Sales are holding steady with a 4.8% increase in invoice volumes, indicating demand remains strong in certain parts of the market. But behind that growth, pressure is building.

DSO has climbed to 47.2 days, the highest level in years. This delay in payments means less working capital and more exposure to credit risk. Arrears are rising, with more businesses slipping into the 60 and 90-day categories, especially in labour hire, manufacturing, and sub-trades.

Construction remains active, but momentum is slowing in some areas. Building consents have dipped slightly, and residential activity is under pressure. Insolvency activity is trending up, with early signs of distress in Auckland and Wellington.

Economic conditions remain tough. High interest rates and reduced government support are squeezing margins and liquidity. The result is a growing divide with strong sales on the surface and financial stress underneath.

Now more than ever, businesses need to look beyond top-line growth. Monitoring payment behaviour, credit risk, and early signs of distress is crucial to protecting cashflow.

Read the full report for the full picture:https://creditworks.co.nz/wp-content/uploads/2025/05/CreditWorks-Insights-March-2025-month-end.pdf