Ina Opperman
Business Journalist
4 minute read
16 Sep 2021
5:51 pm

Decline in short term credit sheds 1400 jobs, nearly R100 million in taxes

Ina Opperman

Job losses as a result of the pandemic have impacted on the creditworthiness of low-income consumers.

Image: iStock

The decline in short term credit impacted jobs and taxes during the first year of the pandemic, and this decline had a direct impact of R790 million on sales and R96 million in tax, while 1 400 jobs were lost as a result of low-income consumers borrowing less, according to a new survey. Short-term credit is usually used for unexpected expenses and enables consumers to borrow money and repay it within a few months. It is a key financial instrument for low-income households and micro businesses. ALSO READ: Financial pain of Covid-19 pandemic gradually receding Short term credit index According to...