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What is a credit policy?
It is the “rules of engagement” relating to the granting and maintenance of credit within a particular company. A policy is a general course of action developed for recurring situations, designed to achieve established objectives.
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In Duplum Interest and the National Credit Act |
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The common law in duplum rule holds that “interest stops running when the unpaid interest equals the outstanding capital.”
Confirmation that this ancient Roman doctrine was part of our law was eventually settled in the case of LTA Construction Bpk v Administrateur, Transvaal 1992 (1) SA 473 (A). |
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National Credit Act no. 34 of 2005 |
There has been a lot of demand for information and news on the National Credit Act no. 34 of 2005 which is having a big impact with all those involved in credit management and the recovery of bad debts.
To keep you advised of developments and articles on the new National Credit Act we have posted a number of articles on our blog Credit Management S.A. and suggest you view the blog for further information on the Act. |
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Signing twice on the dotted line |
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A copy of Brett Bentley’s article appearing in the October 2005 SA Attorneys Journal De Rebus: Signing twice on the dotted line - Caveat subscriptor, quasi-mutual assent and credit applications incorporating suretyships. |
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The granting of credit by businesses in today's economy is accepted as the norm. Flowing from this is the inevitable evil of bad debt, bad debt handovers and bad debt write-offs. While this evil can not be completely eradicated it can be controlled and reduced and you can ensure that bad debt recovery is effective. |
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