Business to business lending

Business to Business lending


  • In a modern entrepreneurial economy business to business lending needs to be approached differently. Convention needs to be challenged and entrepreneurship given space and opportunity.
  • The micro enterprise today could very well be the Google of tomorrow
  • Lenders need to be both intuitive as well as analytic in their assessment, one without the other could prove to be fatal.

This article focuses on 4 key lessons to enhance one’s intuition and analysis.

Lesson 1 – Reduce risk by assessing:


  • Thoroughly analyse future prospects were companies have young entrepreneurial management teams which only managed through a growth phase and not downward cycles
  • Be circumspect of companies with weak management information systems in today’s modern tech savvy economy

Risk Appetite

  • Beware of borrowers with high risk appetite against small absolute size with preparedness to take large financial risk


  • Avoid companies highly dependent on connections to make money together with the absence of a coherent business strategy

Cost Structure

  • Be wary of businesses with a low cost structure because:
  1. Often they lack depth of management
  2. They are stretched in the tough times
  3. Too much emphasis on trusted employees -trust does not equal competence

Lesson 2 – Be aware of key decision makers:

Management and Owners

  1. Intermingling of private and business assets
  2. Gearing above personal debt
  3. Family dynasties – is the next generation so skillful / hungry

Lesson 3 – Pay attention:

  • to “flavor of the month” sectors – be careful with perceived internal expertise
  • to forecasts for market growth particularly where there is a progressive build of expectations
  • to highly leveraged companies because they are more vulnerable to smaller shocks
  • to reliance on “name”
  • to where you and other lenders lend

Remember – “Speed of Action” if warning signs emerge.

Lesson 4 – The detail

Financials Information:

  • Review intelligently
  • Projections – a dose of scepticism might be helpful
  • Devil is always in the detail but don’t lose sight of the big picture
Doctor with debtors book

Are you asking the right questions?

When a new patient registers at your practice, do you ask them all the right questions?

Even if you are asking the right questions, are you making sure they provide the information?

A surprising number of doctors do not obtain the necessary information needed to keep track of their patients should they decide to not pay their account.

Send us your patient registration form and we will review it and suggest any changes free of charge.

List of debtors

Is your debtors book causing you concern?

We have assisted many companies and organisations significantly reduce their debtor’s book and increase their cash flow in a short period of time. From suppliers to the motor industry, to fashion brands, retailers and prepaid electricity and airtime distribution companies, we have assisted them be reducing their debtor’s books by up to 90%.

We deal with high value business to business (corporate) debts as well as business to consumer debt.

If your debt book is growing, isn’t it time for you to take control? Contact us today to find out how we can assist you reduce your debt book and increase your cash flow.

credit card debt collection and recovery

Achieving great results with Credit Card & Personal Loan account collections

Black Fox Credit Management recently joined a panel of eleven debt collection agencies recovering overdue credit card and personal loan accounts for a major South African Bank.

We are very pleased to have achieved joint second place for account activations after our first month of service. This result can be directly attributed to our proactive, persistent and result-oriented collections approach.

We look forward to building on the progress we have made in this short space of time and achieving superior collections results for our valued client.

Corporate debt collection success

A corporate debt collection success story

We were recently contacted by a major international clothing brand that was struggling with a sizable debt portfolio. Additionally they were dissatisfied about the cost of legal fees in pursuing their debtors.

It has been less than 6 months since we started managing their debt portfolio. We have already received payments on more than 70% of the accounts and collected more than half of the total portfolio value without the need for legal action. Our collections are conducted on a “no collection, no fee” basis.

The client is particularly pleased with the results and not least that they only have to pay when we achieve positive results.

If you find yourselves in a similar situation to the client mentioned above please contact us to discuss how we may be of assistance.

Black Fox Credit Management is a proactive, persistent and result-oriented collections agency.