Credit managers have stepped up account reviews and are tightening up on collections, in the face of deteriorating business conditions.

Equifax has released the 2022 National Credit Managers Survey, reporting that credit managers are preparing for increases in delinquencies and insolvencies over the next six to 12 months.

In response, they are monitoring high-risk customers more closely, reviewing risk within their portfolios and increasing account reviews.

Equifax general manager commercial, Scott Mason, said: “The optimism we observed last year has taken a hit, with many credit professional expressing concern about how their customers will weather a perfect storm of higher interest rates, elevated inflation and the gloomy and uncertain outlook for the global economy.

“There is a shift going on from credit management to risk management.”

The majority of credit managers (65 per cent) plan to tighten collections this year.

“Customers that were previously considered to be high quality may have experienced a recent change in risk profile,” Mason said.