Stats SA has released the statistics for liquidations in South Africa up to January 2009.
The figures tell the effects of the decline in the economy and the resultant dramatic increase in the number of businesses, particular small businesses trading as close corporations, failing.
From a credit providers perspective these figures confirm what we have been advising clients for quite a while now – tighten up on your credit granting procedures and increasing credit vetting of your existing clients.
The effects on the South African economy at this stage indicate increased liquidations …

On the 6th February 2009 Judge Masipa handed down judgment in the Witwatersrand Local Division in the matter of Standard Bank of SA LTD vs Salalidis Kismas Panayiotts (case 08/00146).
This case was a summary judgment application brought by the bank against the defendant in a mortgage bond foreclosure where the defendant raised a defence of over-indebtedness in terms of the National Credit Act.

“I hope that when I die, people say about me, ‘Boy, that guy sure owed me a lot of money.’ ”
- Jack Handey
Every credit manager’s nightmare…….