The credit guarantee in terms of the National Credit Act 34 of 2005 : an instrument promoting small and medium enterprises' access to credit

Abstract

The NCA credit guarantee as an instrument to promote access to credit by small and medium enterprises (“SMEs”) in South Africa is investigated. A discussion of the guarantee as an instrument used worldwide to advance SMEs’ access to credit, and of the characteristics of the independent guarantee versus the suretyship agreement, is preceded by a brief discussion of the NCA’s field of application.