About 300 Mackay businesses 'at risk of financial failure'
ALMOST 300 of Mackay's businesses are facing a high risk of financial failure within the next 12 months, according to commercial data by specialist accounting firm SV Partners.
The SV Partners March 2016 Commercial Risk Outlook Report analyses more than 20 million financial records from various sources relating to Australia's 2.34 million operating businesses.
The report identifies the sectors and geographical location of businesses most at risk of default during the next 12 months.
The report revealed Central Queensland's high exposure to the resource sector had left the region with a higher at-risk percentage than the national average, with figures showing a further 32 mining companies in Queensland are at immediate risk of financial failure in the next 12 months.
Significantly, the report also revealed small business, with turnovers of less than $1 million were the most at risk group across Mackay with 89 of these businesses in the high financial risk category.
SV Partners Executive Director David Stimpson said the two main concerns for Mackay's businesses were pressures from the ATO and commercial property prices.
"In recent times the ATO has been more vigilant with their debt recovery and collection processes, turning up the heat on Mackay's small business," he said.
"Pressure from landlords is also a key contributing factor to financial stress on the region's small businesses.
"Leases and property deals entered into two or three years ago during the mining boom are now no longer viable, however some landlords have not been willing to adjust commercial rent to the changed economic conditions," he said.
Mr Stimpson said SV Partners' Mackay office had seen an increased financial risk awareness from local businesses and recommended struggling businesses seek professional help.
"From our experience, business owners and their advisors are becoming more vigilant in recognising key signs of financial stress.
"We recommend business owners seek professional help as early as possible, as this can be the difference between survival and default," he said.
Nationally, the report revealed nearly 50,000 Australian businesses were expected to face adverse financial events within the next 12 months.
The top three industries where businesses were most at risk of default were those operating in the construction, professional, scientific and technical services and retail trade industries respectively.