Home topics news Credit: Melinda Gimpel News News Insolvencies hit 5-year high in December Yajush Gupta February 15, 2024 December 2023 saw a notable surge in insolvencies, reaching a peak not witnessed in five years. Commercial credit demand fell by -0.9% in Q4, reflecting varying market conditions across the states according to the latest data from Equifax, the leading provider of credit information and analysis in Australia and New Zealand. According to the Equifax Quarterly Commercial Insights – December 2023, the decline in overall business credit demand was driven by decreasing business loan applications (-4.1% vs the same period in 2022) and flat trade credit applications (-0.4%). Asset finance applications continue to buck the trend, increasing +8.9% in Q4. Of all the states, Victoria had the largest decline in business loan applications in Q4, driven by significant drops in demand in the accommodation and food services (-37%) and construction (-16%) sectors. Scott Mason, General Manager Commercial and Property Services, Equifax, said: “We are seeing some distinct differences in demand across the states, which led to mixed credit demand performance in Q4. For example, low business loan demand from the commercial centres of Victoria and NSW was offset by growth in WA, SA and Queensland. Similarly, high trade credit demand in WA, SA and Queensland offset reduced demand in NSW and the ACT. “The increases in demand across all credit types in WA and SA could be reflective of a recent resurgence in the mining sector, which has benefited from stronger