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Exporter credit guide for South Africa

An overview from the New Zealand Export Credit Office (NZECO) on key areas to keep in mind around export credit when doing business in South Africa.

  • Typical terms of trade sought by South African buyers range between 30 – 90 days.  If an exporter cannot negotiate advance payments, then the NZECO recommends seeking letters of credit as a means of securing payment, particularly if it is a new business arrangement. 
  • If an exporter is unable to negotiate a letter of credit or other forms of documentary collection, then the NZECO recommends an exporter obtain trade credit insurance on any open account trade.  The primary benefit of trade credit insurance is covering the risk of non-payment due to commercial and political events.  It is also a good way of ensuring due diligence is undertaken on a Buyer – if a trade credit insurer declines cover on commercial grounds, then this should be a warning to an exporter looking to offer credit.
  • Another Benefit of trade credit insurance is that it may enable a proven exporter to obtain a trade finance facility from its bank to help fund the period between paying its suppliers upon shipment of the goods and receipt of the final payments.

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