Protection against Bad Debt

If you’re a business that sells goods and services on credit terms, a substantial percentage of your working capital is probably tied up as accounts receivable.

With Debtors Credit Guarantee, you can protect your accounts receivable from losses due to credit risks such as insolvency or protracted default.

What is Credit Insurance

Simply put, it is the insurance of your debtors. An insurance policy is issued, covering your domestic or international debtors if you are an exporter. We investigate each of your debtors and issue cover against payment default by them.

Credit insurance is a powerful business tool and your company will immediately benefit in the following ways:

  • Banks are likely to offer you more extensive credit facilities on more favourable terms if your debtors are credit insured
  • Credit insurance gives you the absolute confidence to explore higher risk business opportunities you would normally avoid for fear of non-payment
  • It protects your cash flow by replacing cash promptly, should any customer’s insolvency or payment default occur

So why take unnecessary risks when for a nominal fee, bad debt can be eliminated. By simply insuring your debtor’s payment risk through ZE Financial Services, you will be secure in the knowledge that you’ll always be paid.

Professional Management of Credit Risk

ZE Financial Services providers of Debtors Credit Guarantee. With ZE Financial Services you will benefit from the opportunity to protect your cash flow and receive early warning of potential payment difficulties.

Our specialist underwriters are experienced across all industries, and are available to discuss how we can help your business. We provide a broad range of domestic and export policies to suit businesses’ risk management needs – be they local, regional or global.

Importantly, our products are available for companies of all sizes. So, whether you have credit sales of less than R1 million, or are a large corporation with domestic and export transactions, you can take advantage of the solutions we offer.

Our credit risk protection will see your company safely through major and minor calamities which may otherwise have affected your own cash flow.

  • Domestic Credit Insurance
  • Export Credit Insurance
  • Bonds & Surety

Added Benefits

The unique services you will enjoy as a client include:

  • Credit risk investigations and analyses of individual transactions  
  • Constant surveillance of your debtors  
  • An effective recovery service


Domestic Credit Insurance

Provides protection against non-payment of debts (Example: due to insolvency or protracted default) incurred by debtors based in South Africa and/or the common monetary area.


  • Protection against non-payment
  • Expert assessment of credit risks
  • Development of new markets in different industries
  • Increased market penetration
  • Continual improvement in the quality of customers and therefore a lower incidence of bad debt
  • Access to our expert advice on collection techniques
  • Lower legal costs through improved buying power of collection services
  • Enhanced financing mechanisms by providing added security to finance providers


Short-term Export Credit Insurance

Provides cover to exporters against loss of proceeds from an export transaction, where the loss is due to payment defaults or specified political perils.


  • Protection against non-payment
  • Expert assessment of credit and country risks
  • Ability to develop new markets in different countries
  • Increased market penetration
  • Continual improvement in the quality of customers and therefore a lower incidence of bad debt
  • Enhanced financing mechanisms by providing added security to finance providers

  • Bond and Security

  • Bid/Tender Bonds

    A bid bond is issued as part of a bidding process by the surety to the project owner, to guarantee that the winning bidder will undertake the contract under the terms at which they bid. The cash deposit is subject to full or partial forfeiture if the winning contractor fails to either execute the contract or provide the required performance and/or payment bonds. The bid bond assures and guarantees that should the bidder be successful, the bidder will execute the contract and provide the required surety bonds.

    Performance Bonds

    A written guaranty from a third party guarantor (usually a bank or an insurance company) submitted to a principal (client or customer) by a contractor on winning the bid. A performance bond ensures payment of a sum (not exceeding a stated maximum) of money in case the contractor fails in the full performance of the contract. Performance bonds usually cover 10 – 12.5% of the contract price and replace the bid bonds on award of the contract.

    Retention Bonds

    Type of performance bond that protects the customer after a job or project is complete. It guarantees that the contractor will carry out all necessary work to correct structural and/or other defects discovered immediately after the completion of the contract, even if full payment has been made to the contractor.

    Advance Payment Bonds

    An advance payment or simply and advance, is part of a contractually due sum that is paid in advance for goods or services, while the balance included in the invoice will only follow the delivery. It is called a prepaid expense in accrual accounting.

    Materials Off Site

    The Employer is providing the contractor with an advance payment to purchase materials specific to the contract. This is done to:

    • Fix the price of the goods and
    • To secure the manufacturing/supply of the goods in the time for when the contract

            requires it

    The materials will thus be held “off-site” until the contract requires it.

    Custom Bonds

    A bond issued to guarantee the payment of customs fees. A bond is not designed or intended to protect the importer. The purpose of a bond is to guarantee that all customs duties, penalties and other charges assessed by customs will be properly paid and that all trade procedures will be followed.

    Liquidator Bonds

    Our Partners will only deal with liquidator bonds on a case by case basis and only with those liquidators we have been dealing with in the past 20 years.