Trade Credit: a lifeline for struggling SA SMEs

South African small and medium enterprises (SMEs) continue to face a tough business climate, with poor profitability and limited access to external finance being the main reasons for failure. Dr Werner Henk Otto, lecturer and researcher at the University of the Free State, says trade credit can serve as a critical lifeline. However, he cautions that it must be used responsibly. His findings are published in the Southern African Journal of Entrepreneurship and Small Business Management.