Profit Hub (Pty) Ltd v Zuwon Consultants (Pty) Ltd and Another (2024-096735)
Profit Hub (Pty) Ltd v Zuwon Consultants (Pty) Ltd and Another (2024-096735) [2025] ZAGPPHC 244 (3 March 2025)
The court held that, although previous cases distinguished discounting agreements from credit agreements, the substance of the present agreement was that the applicant advanced money to the first respondent, deferred repayment, and charged a factoring fee and penalty interest. The applicant's profit derived from these fees, not from the surplus of the claim. The rights in the invoices were ceded as security for repayment, and the balance after repayment accrued to the first respondent. This arrangement fits squarely within the definition of a credit facility under section 8(3) of the National…
Source excerpt
- National Credit Act
- Credit Agreement Definition
- Invoice Discounting
- Surety Liability