Easter spending trends

Spending at Easter could increase commercial credit use.

Spending at Easter could increase commercial credit use.

Easter is a time when Australians spend a lot of money on treats, holidays and entertainment. If you're in the B2B sector and issue credit, this means a lot your customers will have stocked up on merchandise and supplies for the busy period. But just how much money changes hands at this time of year?

According to research from IBISWorld released ahead of Easter last year, consumer expenditure over the holiday weekend was expected to reach around $2.9 billion dollars. In 2013 the confirmed spend was just over $2.8 billion. It's not unreasonable to predict similar levels of spending in 2015, and Commonwealth Bank is expecting a large amount of trading over this period.

In 2014 the processed 3.1 million transactions from the retail and hospitality sectors alone over the four-day Easter weekend. Money changes hands easily at this time of year, and Commonwealth Bank notes that contactless payments halve the time people spend making transactions.

Keeping control over your credit services

April is a very busy time of year, with Easter early in the month and ANZAC weekend rounding it off. Aside from Christmas, many businesses will not expect to be busier in 2015.With your customers relying on credit to fill their stocks and turn their trade, many B2B companies will experience an increase in issued credit over this period as well.

While this is good for business now, letting these debts slide in the future could seriously dampen your cash flow, especially given the sheer volume of trading taking place. To ensure that your business' interests are protected, act early by talking to Commercial Credit Services about outsourcing your credit management processes.

By getting a handle on things now, you could avoid nasty surprises down the line that could bring your financial flows to a halt. With debt collection processes to suit every situation, we're confident we'll be able to help you make the most of this busy time of year.



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