A new report from Australian digital credit agency, CreditorWatch, has revealed that Australian businesses are showing resilience and strength in the face of economic challenges, but urges those struggling to seek help now and not wait.

In the report, ‘The Economic Road Ahead: CreditorWatch Perceptions and Insights’, CreditorWatch customers reveal their optimism for the rest of 2020 with 94% of businesses suggesting that they have the means to survive until the end of the year, without further help or government support like the JobKeeper initiative.

Reflecting this, a quarter of survey respondents indicated that they could anticipate restoring cash flow to pre-COVID levels within a month, however, the reality for more than half (56%) of the companies surveyed is that it would take over six months to recover.

According to CreditorWatch CEO, Patrick Coghlan, the report highlights that some businesses are ready to be weaned off government support.

“Support packages like JobKeeper have provided businesses with an essential lifeline since March, but the reality is, that they aren’t long-term solutions. Our survey data shows that 44% of businesses think they could be back up at pre-COVID cash-flow levels within five months, which means that it’s time for the government to think about lifting support and allowing businesses to stand – or fall – on their own two feet,” Coghlan said.

The Economic Road Ahead also illustrates the slowing path to administration – highlighting a 23.1% drop in the number of businesses entering into administration over the last quarter. The drop reflects not only that businesses are being propped up by government support, but also how court closures across various states have delayed administration proceedings as well as the lenient approach taken by creditors in recent months.

Looking ahead, The Economic Road Ahead highlights that Australian businesses are readying themselves for the wind back of federal support, by focusing on cash flow management, due diligence and the collection of outstanding debts.

“Australian businesses have shown incredible resilience to date. While the reality is that not all will survive, my advice is for business leaders to arm themselves with the support and advice they need now, to successfully navigate their way out in the coming months,” Coghlan said.