• Equifax has seen growth across all enquiry types on the corresponding Q3 last year.
  • Compared to Q2 all enquiry types went backwards but that is largely seasonality driven
  • Insolvencies have increased dramatically however we are trending to long term averages. We have not seen the tsunami that the media would have you believe. But some industries like construction have been more greatly impacted
  • Because of a stretch of resource we did not do a deep dive this quarter but we did take a closer look at averse rates, by industry and enquiry type. Interestingly across the ANSICs we pulled it shows a compelling reason to purchase reports that look at the people behind the business with InDepth Trading History reports picking up circa 18% chance of adverse compared to just a company report circa 5%.

From an enquiry type both Business loans and Trade finance showed similar results of 14-18% differences. Only Asset finance is lower than the average enquiry rates. The message to your clients is the more you understand the people behind the business the better you will be at identifying risk. Especially those in the building industry.

Scott Mason – General manager Commercial and Property Services – Equifax believes;

  • Despite increases in interest rates, soaring inflation, supply chain challenges and reductions in Business and consumer confidence, enquiries for credits are still strong.Though economists are explaining the phenomena as a delay in mortgage rates and inflation flowing through the economy
  • Supply chain issues are starting to resolve leading to reductions in used motor vehicle and equipment prices and increases in construction material availability.
  • Employment still remains near full which is probably stopping a recession in the short term. The increase in immigration next year as well as a slowing down in the global economy may adversely impact business growth.