Debt collection strategies in South Africa for Small Business.
Our team at i-Check Data Solutions have put together this article about debt collection strategies in South Africa for small to medium business. Today South Africa is finding itself in a tough economic climate, unemployment is at record high’s and with inflation, on the rise it’s no surprise that the country’s unsecured lending market continues to grow but at a slower rate, whilst at the same time there is evidence of increasing default levels of unsecured credit.
Credit providers need to take note of the changing environment and impact it will have on their companies growth, they also need to find smart ways of optimizing of their collections strategies and maximizing their return on investment.
The South African credit industry is been rocked with a number of regulatory and legislative changes in the last couple months. These included the Removal of Adverse Credit Information Project that was recently approved by Cabinet and draft amendments to the National Credit Act which details the new affordability guidelines.
Taking these amendments into account and the fact that an alarming rise in the number of South Africans that are experiencing deteriorating credit health. Government macroeconomic data also is showing clear signs that household cash flows are weak and in the negative and price inflation which is on the rise due to the weaker Rand is offsetting any income growth.
With this gloomy scenario in place, and as more and more consumers are being forced to supplement their living standards by relying on credit to meet their general living costs, it becomes imperative that credit providers have strict and clear strategies in place to pre-vet potential clients and thereby determine lower your risk by not entertaining issuing credit to clients who are deemed high risk.
Having a strong collections department that is on top of collecting overdue accounts and recovering unpaid debts is key to weathering this economic storm.
i-Check Data Solutions has a number of affordable solutions that can help you achieve this task. Our solutions are intelligent and affordable, we pride ourselves on offering our clients solutions that really work!
If you would like to know more about our products or services, please do not hesitate to contact one of our friendly sales consultants today!
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