NEWSROOM

  
March 23, 2018
fraud prevention

Bureaus play pivotal role in fraud prevention

With the increasing prevalence and frequency of cybercrimes such as phishing, spoofing and data breaches, which compromise the personal identity information of individuals, the risk of identity theft and its use in credit application fraud has never been greater. Statistics released in 2017 by the South African Fraud Prevention Service indicate that identity theft has increased by 200% over the past six years, while the most recent statistics available from the South African Banking Risk Information Centre show that credit card fraud increased by 13%, from R331.4m in 2015 to R375.4m in 2016. People tend to only find out that they’ve become victims of identity theft or credit application fraud […]
September 22, 2017
confident business woman

Recession exit inspires confidence, but no call for call for celebration

  News that South Africa’s economy grew by 2.5 percent in the second quarter of 2017 was most certainly well received and beat economist expectations. The market expected growth of 2.3 percent while some meaningful analysts had the GDP growth forecast set at no more than 1.4 percent. While this could be the first meaningful sign that SA’s economy is on the mend after spending some time in the doldrums, for many SA citizens there seems, as yet, little to celebrate. Political uncertainty, high unemployment and junk status still remain on the agenda as inhibitors to our growth; while for those in the construction industry there is no good news […]
August 31, 2017
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 to Frank Knight, MD of Debtsource – a credit management outsourcing company. “Trade credit lenders are often of the opinion that debtor financing is a financing arrangement of last resort, and are therefore dubious of the liquidity of the business and their customer’s ability to settle accounts timeously.” Knight says that there can be […]
June 27, 2017
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 pay its bills when they are due. When there is a lack of cash resources, usually tied up in receivables or written off to bad debts, a company is vulnerable to failure, no matter what their perceived profit. Cash is the essence of a business and ideally, a business needs to generate enough cash […]