Why trade terms can make or break your business

Interest rates, inflation and the hidden giant of creditSouth Africa's credit ecosystem is far more interconnected than it often appears. Trade credit runs through almost every part of it. Trade credit is one of the largest and least appreciated sources of finance in South Africa. Every day, businesses extend billions of rands in credit to their customers without thinking of themselves as lenders. Yet every invoice issued on 30-, 60- or 90-day terms is, in effect, a financing decision. That reality matters now more than ever. When the South African Reserve Bank (SARB) adjusts interest rates, when inflation erodes purchasing…