A number of SA companies are extending credit facilities to Zimbabwean debtors, and some of our local trade credit insurers are covering these risks. Considering recent developments in Zimbabwe it may be time to review these credit opinions, especially in light of the fact that the country is the only place in the world where a currency trades against itself. The price of a US Dollar in Zimbabwe? About $1.07! According to an article published in the Business Day, which was based on a report published by Bloomberg; it would seem that banks and currency dealers have done their best to avoid new exchange control regulations introduced by the Reserve […]

Euler Hermes predicts that insolvencies in South Africa will increase by around 10%. BDlivehas published an article which cautions that as the outlook for South Africa’s economy becomes bleaker and insolvencies rise, businesses need to pay closer attention to their financial health to avoid getting into bigger trouble. Euler Hermes’ latest outlook 2015-16 report which states that insolvencies in SA will increase roughly 10% is noted. Earlier this month the World Bank noted that the SA economy was “flirting with stagnation, if not recession”, and projected growth of 0.8% for this year.

SA’s credit extension has continued to slow down over the past year and is unlikely to cause any concern for the Reserve Bank in deciding on interest rates. The NCR reports indicating the total value of new credit granted decreased 8.6% from R117.6-billion for the three months ended December 2014 to R107.5-billion for three months ended March 2015. Credit extension in the first quarter of this year is also lower when compared with the R105.6-billion recorded in the first quarter of 2014. Downward trends in recent years have been largely attributable to a slowdown in unsecured lending, which had previously reached worryingly-high levels, according to some commentators.

If you are a looking for an exciting career in credit management you’ve come to the right place. From Learnerships to qualified Credit Specialists, Debtsource is always looking for credit-minded individuals to join our dynamic team. Please send your CV to careers@debtsource.co.za and we will contact you.