drafting of credit documentation

Here's what Our debt recovery department offers

Our research into the various credit laws coupled with our vast experience in suing debtors and having to overcome various dilatory defences in litigation and dealing with debtor’s efforts to hide and alienate assets has meant we have developed and improved our credit documentation and forms of security over the years

Suretyship documents

Cession of book debts

Pledges

Acknowledgements of debt

Notarial bonds

Other forms of security

Covering bonds

over immovable property

Credit applications

with standard terms and conditions of trade

The purpose of this document is as a many faceted but the most important functions are:

  • To enable you to properly assess who your potential client is, before you start trading with them;
  • to incorporate securities, to protect you in the event of your customer defaulting;
  • to set out with certainty your trading terms, payment periods and the consequences of non-payment;
  • to limit your liability in the event of you or your product’s failure to perform.

The basis of any sound business relationship between any business extending credit in any form to customers or clients, is a credit application form incorporating standard terms and conditions of trade.

We would implore any business granting credit to use a sound good application form incorporating standard terms and conditions of trade. In addition, if your credit application form has not been drafted with the National Credit Act and Consumer Protection Act.

Recent Posts on drafting of credit documentation

How is a Surety’s Right of Recourse Affected by the Business Rescue of the Principal Debtor?

Business Rescue and Suretyships With the introduction of business rescue in terms of Chapter 6 of the Companies Act No. 71 of 2008, one of the areas of contention has been its affect on the suretyships of the company in business rescue. The legal consensus seems to have been reached that: although a suretyship is …

How is a Surety’s Right of Recourse Affected by the Business Rescue of the Principal Debtor? Read More »

”In full and final settlement” …or is it? (Properly Drafting Settlement Agreements)

Settlement agreements form an essential part of commercial debt repayments. By acting as a recording of the agreed terms of the repayment, such agreements are meant to provide certainty as to the intention of the parties. It is for this very reason that the terms of settlement agreements should always be in writing and be …

”In full and final settlement” …or is it? (Properly Drafting Settlement Agreements) Read More »

When does the National Credit Act Apply to a Transaction?

The Test for NCA Applicability The National Credit Act No. 34 of 2005 (“the NCA” or “Act”) has had a significant impact on transactions involving deferred payment and interest in South Africa. However, it has almost become trite law to refer to the interpretive challenges that arise out of the poor drafting, while at the …

When does the National Credit Act Apply to a Transaction? Read More »