Die risiko van bankfinansiering aan klein en medium grootte maatskappye in Suid-Afrika

Abstract

In advancing money to a company a bank is always at risk of losing that money. Through the years banks have endeavoured to minimise that risk by taking collateral against any amounts advanced whenever they were in doubt. In the modern banking environment in South Africa banks are striving for long term relationships with clients. The literature study is undertaken to establish the evolvement of thinking around the problem as to what information should be required to make a proper decision on a credit application. An empirical study was undertaken to establish what degree of importance the major banks attach to information on the management of the applicant. Areas were identified where information about the management of the company could be improved. Taking this into account and using one of the standard application forms in regular use by one of the major banks as a basis a new form was designed that should yield more vital information the bank can use in making any credit decision. As in anything in life there is always room for improvement. By looking more closely at how a company is managed a bank can make a more confident decision about entering into a long term relationship with a company.