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Thread: Then NCA nightmare!

  1. #21
    Silver Member Eugene's Avatar
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    Quote Originally Posted by Dave A View Post
    The inclusion of discount transactions was probably intended to cover financing as facilitated under Islamic law, but the definition of a discount transaction seems to extend beyond this to (possibly) COD discounts.

    Once you are in this territory, it then becomes a threshold issue - and there are lots of businesses who don't consider themselves as financial institutions or money lenders, but are going to be classified as such by those thresholds.

    Very true Dave - this point also came up at one of the workshops I attended. There are no clearcut guidelines and I believe that this might be one of the first issues to be considered in a Court and a declatory order issued as it affects many small business owners.

  2. #22
    just me duncan drennan's Avatar
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    Question: If there is this threshold of 100 agreements, and R500000....does that mean that a business who is providing credit (with no interest, etc.) and has more than 100 clients (or total amounts due over R500k) would still need to register as a credit provider?

    Is this affected by who their clients are, e.g. if the client asset value is greater than R1mil? Or is it a flat issue, regardless of the make up of the clients?
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  3. #23
    Site Caretaker Dave A's Avatar
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    There's nothing to indicate that the threshold count is affected by the profile of the debtors as far as I can tell.

  4. #24
    Silver Member Eugene's Avatar
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    Quite correct.

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