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debtor finance

Does debtor financing still retain its stigma?

Debtor financing houses, most notably controlled by South Africa’s biggest banks, have gone a long way over the past few years to rid the industry of the stigma attached to debtor financing. Yet, a number of credit extension professionals still view applications from potential debtors that have elected to finance their receivables as risky, according

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business fail

Why do profitable businesses still fail?

Where your business’ accounts are concerned, profit and cash-flow are key financial measurements. However, many business owners aren’t aware that they are not directly linked, nor are they both equal measures of success. Profit is a measurement of a company’s sustainability on an ongoing basis, while cash-flow is a measure of a company’s ability to

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risky market conditions

Granting credit not for the fainthearted

Extending trade credit facilities in volatile and risky market conditions is not for the fainthearted With South Africa’s economic position in a precarious state, particularly since the downgrade to junk status, many businesses may find themselves in a pickle over credit management. Chief executive of Debtsource, Frank Knight, says that with the ratings downgrade, banks

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Business failures set to blow if economy tanks

Business failures set to blow if economy tanks

Few people realise that the largest source of business funding in South Africa is provided by private companies themselves. Businesses extend credit to their customers and obtain credit from their suppliers, usually in the form of short-term funding which lasts for 30 to 60 days per transaction. This form of funding helps businesses both large

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business rescue

Business Rescue – does it work?

There can be little doubt that South African companies are having a tough time. The local and global economy is growing at a snail’s pace and the business confidence index fell to a seven-year low in the second quarter of 2016. Obviously more companies are going into liquidation – correct? Not so! According to Stats

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Selected Debtor Insurance hits the market

Hollard Trade Credit have launched a new selected debtor insurance product which is being supported by the Debtsource credit risk management solution. After extensive investigation into the current trade credit insurance market, Hollard have launched its trade credit insurance offering – and it looks set to be a real winner. Rather than opting for comprehensive

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Can you sell to every debtor?

The purpose of effective credit management is to achieve the maximum possible outstanding for the shortest possible period of time. This is easier said than done when getting new business is tough, only for credit to refuse the account – and especially frustrating in a depressed economy where growth is hard to achieve. No wonder

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