CreditorWatch reveals worst Gold Coast suburbs for business debt pain

An alarming new report has named the Gold Coast suburbs and industries where businesses are most likely to default on payments - with one leader describing the analysis as ‘worrying’.

Surfers Paradise, Ormeau and Oxenford were among the worst areas in the nation for businesses defaulting on payments last month, an alarming new report revealed.

The top five business regions in Australia named the most at risk for overdue debt were Merrylands, Canterbury, Surfers Paradise, Auburn and Ormeau-Oxenford (combined).

This was according to the CreditorWatch Business Risk Index, which measures business stress by analysing future insolvency risk, business trade receivables and cash flow activity, among other data sources.

Surfers Paradise, Ormeau and Oxenford were among the worst areas in the nation for businesses defaulting on payments last month. Picture: istock

The index also revealed the top five Queensland regions most likely to default over the next 12 months.

Surfers Paradise came in at number one, followed by Ormeau-Oxenford, Southport, Gold Coast Hinterland and Broadbeach-Burleigh.

The industries with the highest risk of not paying bills over the next 12 months were food and beverage services (7.20 per cent); arts and recreation services (4.68 per cent); and education and training (4.63 per cent).

CreditorWatch CEO Patrick Coghlan said payment defaults were a “hugely significant” indicator of future financial stress.

“Approximately 25 per cent of businesses with a default end up in administration within 12 months,” Mr Coghlan said.

“Additionally, it puts pressure on the supplier who will now have to shoulder that bad debt.

“A business with a trade payment default are seven times the default risk compared to a business with a clean payment record.”

Gold Coast Central Chamber of Commerce president Martin Hall. Picture: Regina King

Gold Coast Central Chamber of Commerce president Martin Hall was not surprised to see the predicament facing local businesses but admits it’s still “worrying”.

“These are certainly some red flags that represent the sentiment in the business community,” Mr Hall said.

He noted while the tourism and hospitality industries were recovering, the Covid pandemic’s legacy was still impacting supply chains and creating staffing pressures.

He said the post-Covid resurgence some sectors were experiencing was not the case for others.

“That’s why all levels of government need to continue to support businesses on the Gold Coast,” Mr Hall said.

“It’s about a hand-up, not a hand-out. Sugar hits are not the answer.”

Nuccia Fusco of Costa D'Oro Italian restaurant in Surfers Paradise. Picture: Tertius Pickard.

Surfers Paradise restaurateur Nuccia Fusco said her Costa D’oro eatery and bar had experienced “phenomenal” trade since Covid restrictions were lifted.

But Ms Fusco said she couldn’t speak for other hospitality businesses in the area.

“We’ve never been busier,” she said.

“The only problem we have is finding staff.

“Surfers has had its ups and downs over the years, but people seem to be coming back in.”