Business credit indicators were positive in June, with credit inquiries up and payment defaults down.

According to the latest CreditorWatch Business Risk Review, credit inquiries were up 32 per cent compared with June last year. It is the ninth consecutive month credit inquiries have been up compared with the corresponding period in the previous year.

CreditorWatch chief executive Patrick Coghlan said: “The picture with credit inquiries looks good. Businesses are getting on with it.”

Payment defaults in the June quarter were down 3 per cent compared with the March quarter and down 38 per cent compared with the June quarter last year.

“The is good news for the economy, indicating that businesses are becoming more capable of paying their bills,” Coghlan said.

CreditorWatch assess the probability off default in different industries. At the top pf the list is accommodation and food services with a 6 per cent risk of default, followed by transport and warehousing.

External administrations rose in the June quarter, up 23 per cent compared with the March quarter. On an annual basis, however, external administrations were down 21 per cent.

Coghlan said these numbers are good news for continued economic recovery but they also show that many Australian business were not in good shape going into COVID.

Coghlan said: “It’s likely trade credit figures will continue to be volatile in the current quarter, if not the rest of the year. The uncertainty created by recent lockdowns and Australia’s low vaccination rate are two key uncertainties confronting businesses.”