debtfinance

Securitisation as a Preferred Funding Mechanism

When a business decides to raise funds, it has a number of options available. The most common options would be in the form of a loan from a licensed institution (whether in the form of overdrafts, revolving credit facilities, syndicated loans or other forms) or to approach the capital markets. These loans would c be …

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Deferred Payment Sales: Risks and Mitigation Tips for Sellers

A sale of business or shares usually follows a predictable pattern. In many cases, the seller agrees to transfer business assets or shares before receiving final payment, which is referred to as a ‘deferred payment’ or ‘deferred loan’.  A seller may agree to transfer ownership on a deferred payment basis for various reasons, including a …

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Coronavirus Impact on Business Agreements

As the business world feels the effects of the coronavirus (Covid-19) pandemic and takes steps to adapt, travel companies are notifying partners that their force majeure policies have been extended to all travellers from Mainland China and all properties within Mainland China. The result is that deposits received by hotels and guesthouses will be repaid …

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Loan Agreements: The Basics (Part I of III)

Lending in general South African businesses, whether state-owned, listed or just starting up, are struggling. Retrenchments are the order of the day and a poor credit rating continues to mar funding and investor prospects. However bleak it may seem, the small and medium-sized enterprise (SME) sector in South Africa is growing by the day. Several …

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Tick Tock for Demand Loans

Loans in terms of which the obligation for repayment of the outstanding amount only arises on receipt of a demand for repayment from the lender (“Demand Loans”) are frequently being used in South Africa as part of trust/company structures or business operations in general. A word of warning – Demand Loans may have become ticking timebombs for …

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