In 2025, Australian companies are still navigating a challenging financial environment with mounting pressure in a number of industries. Company bankruptcies reached 1,481 in October 2025, marking the highest monthly figure since 1999. 

Combined with persistent cost-of-living pressures and sluggish economic progress, many businesses are facing default risks as dues fall behind. The rise of debt recovery risks across industries makes it critical for creditors and suppliers to remain vigilant before overdue accounts escalate into losses.

Top Australian Industries Facing Debt Recovery Risks

Many sectors are struggling to maintain stable payments as the financial environment remains tight. Businesses that operate within or supply these industries should stay alert to early warning signs of default to prevent potential losses. Here are the top sectors to look out for:

• Construction

Construction remains the most at-risk segment among all Australian industries, accounting for roughly 27% of national insolvencies in 2024. That figure marks a 23% year-on-year rise, driven by fixed-price contracts that no longer align with surging material and labour costs. When insolvencies rise sharply, exposure widens across the entire supply chain.

Fixed-price contracts that no longer align with surging material and labour costs continue to erode project margins. These cash flow strains often translate into delayed payments and unresolved defaults, making recovery significantly more challenging.

• Accommodation and Food Services

The accommodation and food services sector recorded 1,667 business failures across 2024, with the same industry trends carrying into 2025. Hospitality businesses frequently operate on thin margins and have limited cash reserves to settle past-due payments once revenue declines. This is exacerbated as rising insolvencies increase the risks associated with debt recovery.

Suppliers often have unrecoverable debts when companies fail at this rate. The risk of unpaid accounts is maintained by continuous instability, even though restructuring plans offer some respite.

• Professional, Scientific, and Technical Services

This industry recorded 308 insolvencies in the first quarter of the 2026 fiscal year (July to September 2025). Although this marks a slight 1.93% decrease from the previous year’s first quarter, the number remains high enough to signal ongoing exposure. 

Elevated business insolvencies place service providers at increased debt recovery risks because clients who delay or default on payments often leave limited recoverable assets once administration begins. The slowing demand for consulting, research, and specialised technical work continues to shape the industry’s outlook. 

• Retail Trade

The retail trade sector saw external administration appointments rise from 448 in 2024 to 460 in 2025. Even a slight increase in the number of insolvent retailers increases the risk of debt recovery, as it indicates that more businesses are unable to meet their financial obligations and are depending on administrators to manage their collapse. This trend suggests a higher likelihood of unpaid invoices for suppliers once retailers run out of money or are unable to move inventory.

Shifting spending priorities and declining consumer confidence continue to put pressure on retailers. Maintaining steady cash flow is challenging due to excess inventory, growing rent, and increased utility expenses. These demands make it harder for retailers to handle their debt obligations and raise the risk of defaults.

• Transport, Postal, and Warehousing

Transport, postal, and warehousing insolvencies have risen more than 38% year-on-year. Many operators incur significant capital expenses for maintaining fleets, depots, and equipment. These assets often return limited value during liquidation, which increases the uncertainty of recovery.

As insolvencies rise, creditors also face tougher competition for a small pool of recoverable assets. These financial challenges cause frequent revenue fluctuations, which make it difficult for businesses to keep payments consistent.

Why You Should Hire Professional Debt Collectors

Growing insolvencies in these sectors demonstrate how quickly past-due accounts can become challenging to recover in the absence of prompt action. To increase the possibility of obtaining payments before problems worsen, a debt recovery agency in Brisbane offers organised tactics, regular follow-up, and expert communication. Their understanding of industry-specific risks allows them to pursue debts more effectively despite slow economic growth.

De-risk Debt Recovery with Bluechip Collections

The rising financial pressures across these sectors highlight the need for proactive credit management and reliable recovery support. Businesses that act early place themselves in a stronger position to protect their cash flow and manage risks effectively.

Bluechip Collections offers guidance backed by experience, industry knowledge, and a commitment to ethical recovery practices. Our debt collectors in Brisbane help businesses regain financial stability and minimise disruptions from overdue payments.

Contact us through our website or at 1300 462 114 to get started.