Dubbo companies have the lowest insolvency risk in Australia but the economy and drought mean "business owners need to be savvy", a specialist firm advises.
Just six of the regional city's companies, equating to 0.8 per cent, are at high to severe risk of financial failure, the latest quarterly SV Partners Commercial Risk Outlook Report shows.
That's down from 15, or 1.8 per cent of, businesses six months ago.
Dubbo outdid Tamworth, where 1 per cent of companies were at a high to severe risk of insolvency.
SV Partners director Daniel Quinn said despite a difficult year marred by drought, Dubbo businesses were in good shape.
"While we are concerned some of the changes in the data may reflect the exit of businesses who were previously at risk, these findings reflect the hardiness of Dubbo businesses," he said.
Despite the drought, no Dubbo registered agriculture, forestry and fishing businesses were at high to severe risk of insolvency.
Bucking the national trend, no local retailers were at high risk, compared with 2.6 per cent nationally.
Businesses in sectors in the moderate category were advised by Mr Quinn to talk to their advisors to take steps to avoid the high-risk bands.
He noted 21.8 per cent of retail businesses at Dubbo and 23.8 per cent of construction businesses were in the medium-risk band.
In retail it could play out that consumers held on to the dispensable dollar and being "a bit more wise" in spending, while retailers stepped up their efforts.
"So there's a lot of, you might find it in the streets of Dubbo, the sales happening when there aren't normally sales," Mr Quinn said.
He advised businesses they needed to secure their revenue streams in difficult times and ensure they had manageable levels of debt.
"So the business owners need to be savvy, they need to be aware of what's going on around them, but at the same time... they've got to be careful not to go and sell their stock for less than what they've bought it for..." Mr Quinn said.