In business and life generally, you have to make a buying decision for certain things. While some come easy, some do not. 60 It is also not a smart money move to make purchases when the thought occurs to you or every time something looks attractive, even if you have enough money to buy as much as you want. There are a few things to consider to ensure that you are making smart money moves.

Here are a few questions to ask when making purchases below:

1. Do I need this?
This is a simple concept of need vs want. The economic definition of a need is something required to survive. The concept of survival in economics is real, meaning someone or something would die without the needs being met. This includes things like food, water, business infrastructure, working staff or a piece of important equipment needed to run a business. In economics, a want is something that people crave or desire to have, that they may or may not be able to acquire.

There are must-haves and nice to have; focus on the must-haves. A simple way to recognize this is that without the must-haves, your business would not survive.

A want is not necessarily needed to keep a business alive. For instance, a food processing company will need a food processor to survive, but will want a vacuum cleaner to clean up. In this case, the need will gain priority over the want, and should be attended to first especially where there is a shortage of money.

This question should also be asked when applying for a business loan. Make sure it is a loan that is critical to the business needs (for growth, survival, and so on) and not just something that you want or desire.

2. Can I pay this back?
Before taking out a business loan, ask yourself if you are in the capacity to repay the loan, how long it will take to pay it back and if it is a decision that will benefit your business.

3. What is the return on investment?
Return on investment is the financial benefit acquired from an investment. Basically, it is a result of what you get back compared to what you spend. To determine your ROI, your goal is to receive the maximum return on minimal investment i.e. you want to get more back than what you spend. Before making a purchase, ask yourself; What will I earn by spending this money on my business? Is this going to increase my profit?

For example, if you outsource work to save time and increase efficiency, is the money spent going to reduce cost, thereby increasing profits and improving the quality of work done? If so, what is the return on that decision?

4. What is the better alternative?
Can I borrow or rent this item for a lower price instead of buying it at the full price? Can I outsource this instead of hiring for a full-time position? These are good questions to ask when considering the purchase of potential one-use items or services. Do you need to purchase a speaker for an event or you can rent one at a reduced price compared to the price of buying one?

5. Is it budgeted for?
The importance of budgeting cannot be overemphasized. If you are considering a purchase that is not budgeted for, do not buy it instantly. Make a plan to buy it later, and budget the expense properly. It is important to not only create and set a budget, but firmly stick to it. Creating a budget helps you track your spending.

Adopt a habit of only purchasing items that are on your list, and this will help you decrease the likelihood of wasting money on things that you do not really need.

6. Do I need it right now?
Try holding out on a purchase for a few days or even a few months, if you can delay an expense for a while without needing to purchase immediately, you probably do not need the item. Often, you would discover that you no longer want or need the item after a little time has passed. If you do not need it right this instant, consider adding it to a “purchase pause list.”

In conclusion, you don’t have to ask yourself all these questions every time you make a purchase, or a buying decision. Simply have them at the back of your mind and make sure that your purchases are for the right reasons, as well as affordable, to ensure that you are not buying impulsively and you are making smart money decisions.

References
https://study.com/academy/lesson/the-difference-between-wants-vs-needs-in-economics

https://www.livingthatdebtfreelife.com/home/the-budget-method-that-change-my-life.com

https://blog.biznurture.com/2019/10/simple-tips-to-develop-better-money-habits/

https://www.thebalancesmb.com/roi-return-on-investment-1794432

Monopoly is a family game that has been played since 1935. Besides revealing how competitive people can be, there are many money lessons that can be learned from playing this game of strategy that offers ways to manage your money, while teaching money management lessons in an easy and fun way. It also teaches you about building a secure financial future as you can learn a lot about how to get ahead financially by playing monopoly.

Here are a few lessons you can learn from playing monopoly:
1. Be Patient
To win at monopoly, you need to have a game plan, and consider every action and purchase you make. You cannot buy every piece of real estate you land on. You have to be patient and know when to buy and when to let it go. When it comes to building, you have to be careful and make sure that you do not spend all of your monopoly money on building hotels and houses. You need to make sure that you have cash on hand to pay for rent and unforeseen circumstances like jail or a chance card. This prevents you from having to mortgage properties and declaring bankruptcy early.

Similarly, in investing and purchasing, you have to be patient and take a disciplined approach. Know when to invest, buy, and when to take a pass. Note that monopoly continues till all, but one player, have declared bankruptcy. Additionally, your financial journey is a marathon, not a race when it comes to saving and planning for your retirement, be patient and grow your portfolio gradually.

2. Always Keep Cash on Hand
Monopoly rewards the players that have cash on hand. Ultimately the winner is whoever has the most cash at the end of the game. If you aimlessly land over the board and purchase whatever property you land on without a concrete strategy, you are likely to run out of cash. Without cash to pay rent or invest in your properties, you have to sell off properties or mortgage them at a discount to face value. At this rate, it is only a matter of time before you go bankrupt.

This also applies to real-life finance. It is important that you budget your expenses so you know what you are paying for, cut out the unnecessary expenses and avoid compulsive buying. This ensures that you still have money left over after paying for necessities like food, rent, and clothing. You should also save a percentage of your earnings. It is important to have money saved up for a rainy day.

3. Do not put all your eggs in one basket
You don’t win in monopoly by just owning one property on the board and loading it up with as many houses and hotels that fake money can buy. Ultimately, it is the player with the most properties who will gain monopoly control of the board. There are 40 spaces on the board; the chances that a player will land on your one property within the board are slim. It is best to purchase many properties on the board from at least one color group. This increases your chances of getting rent and making more money.

This also applies in investment. Rather than putting all your eggs in one basket, diversify your portfolio to reduce risk of exposure to a total wipeout if something goes wrong, and increase your chances of making more money. Instead of betting on one or two stocks, diversify and spread it out. Similarly in income-earning, diversify your streams of income.

4. Always Have a Get Out of Jail Card (Emergency Fund)
One monopoly tip is to keep a little bit of the money you receive at the beginning of the game away and keep on adding to it during the course of the game. This helps to ensure that you have enough money to pay for rent, buy properties, invest, have enough to remain in the game, and possibly win. This is applicable to real-life finances. It is always best to have a plan for the future as well as unforeseen circumstances. An emergency fund is very important. This is a stash of money set aside to cover financial surprises life might throw your way. Most experts advise you should have enough money in your emergency fund to cover at least 3 to 6 months’ worth of living expenses.

5. Generate Passive Income
In Monopoly, investing in your assets is important. Owning a hotel is one of the ultimate goals for players because you can charge the highest rent when someone lands on one of your properties with a hotel. You might have skills, talents, or properties that can generate extra income apart from your wages, improve what you have. If you build hotels on your property rather than houses, the payout is bigger. Work on your skill or talent, and make out a strategy to generate passive income with it. For instance, you can create and sell a “how-to” e-book, promote a sponsored video on how to do something, or you can rent out that room or property you don’t use and grow your wealth while you sleep.

6. Spend Wisely To Avoid Debt
If you spend, spend and spend some more in monopoly, you will soon be out of money, and you will either be out of the game or asking someone to bail you out financially. This also applies in real life: spend your money wisely to avoid debt.

You never know what “chance” card you might be dealt with in life, it is therefore important that you are informed on ways to handle your finances and money better. With this, you are well-equipped to handle these situations well. Pay attention to all the little details and be intentional about your finances and hopefully, you are able to grow and maintain your wealth efficiently.

Reference
https://www.investopedia.com/articles/basics/12/lessons-monopoly-teaches.asp

https://financial-lessons-learned-from-the-game-of-monopoly/.

https://investor.vanguard.com/emergency-fund/

A loan is used by many individuals and businesses as a method of making large purchases that they could not afford under normal circumstances, improve their businesses or take advantage of an opportunity; to the lender, it becomes a loan while to the borrower it becomes a debt. A debt-based financial arrangement gives the borrowing party permission to borrow money under the condition that it is repaid at a later date, usually with interest.

A lot of times, it is easier to take a loan than it is to repay it. While there may be several reasons for a debtors’ incapacity to pay a loan, there are usually many strong consequences for failing to repay a loan. Loans seem like “easy money” and for many on the due date for repayment, it becomes a burden to make the payment.  Since failure to repay loans when expected attracts certain consequences, this article is about why you should pay back a debt you owe, whether it becomes favorable or not.

Let us start by defining what debt is in layman’s language.

What Is A Debt?

Debt is simply anything owed to a person or organization. According to Investopedia: debt is an amount of money borrowed by one party from another1.

Understanding Debt:

The most common forms of debt are majorly financial loans and auto loans. Under the terms of a loan, the borrower is required to repay the balance of the loan at a certain date. This is determined by the terms of the lender. It could be daily, weekly, monthly, quarterly, semi-annually, or annually all determined according to the terms of the lender. The terms of the loan also stipulate the amount of interest that the borrower is required to pay daily, weekly, monthly, semi-annually or annually. Interest is used as a way to ensure that the lender is compensated for taking on the risk of the loan while also encouraging the borrower to repay the loan quickly in order to limit his total interest expense.

Why you should pay off your debt!

Majorly, the reason why many plans to pay off debt fail is that there is no real motivation behind them. You may start out fully motivated to become debt-free but easily become discouraged with the time and effort it takes to see your plan all the way through.

If you want to keep the momentum in your debt payoff, you have to continually remind yourself of the reason why you want to get out of debt. How will paying off your outstanding debts benefit you?

Here are ten reasons why you should pay off your debt.

1. It increases your financial security:

Debt is a serious threat to your financial security because it is a financial obligation that will continue to exist until it is repaid. This means that it is a threat to any income you would make no matter what you earn, there will always be the risk that your creditor will come knocking on your door for repayment. More so, what you spend on debt payments could be stashed away for a rainy day, your retirement, your kid’s college education. Once you become debt-free, you would be able to work towards becoming financially secure.

2. You could Spend on Things You Enjoy (Without Feeling Guilty):

Paying off debt leaves you with less money to do the things you really want to do in life.

Unfortunately, this is the reason many people end up going deeper and deeper into debt. They cannot afford to buy things because of the debt they have, so they use more debt to make purchases until they reach the end of their borrowing rope. Paying off your debt ends this vicious cycle and frees up your money to buy the things you enjoy.

3. Paying Off Debt Reduces Stress in Your Life:

Debt can lead to extra stress as you worry about how you are going to cover all the debt payments and other living expenses. Constant stress can lead to serious health issues including migraines and even heart attacks. In some cases, becoming debt-free can literally save your life.

4. It Reduces the Number of Bills You Have to Pay:

The more people you owe, the more bills you have to keep up with and pay. Once you become debt-free, you would have fewer bills coming in up every month. You will only have a few monthly expenses to worry about e.g. utilities, insurance, as well as expenses that don’t have minimum payments and interest charges, and long-term obligations.

5. It Improves Your Credit Score/Rating:

Too much unpaid debt can have a negative impact on your credit score/rating. When your credit rating shows unpaid debts with default charges and exceeding repayments date, your credit score takes a hit. The flip side of this is that as you pay off your debt, your credit score will improve. This, in turn, can offer a wide range of potential benefits for future lenders to see you are indeed creditworthy.

6. Increase Your Future Earnings

Whenever you take out a loan, you are simply borrowing from your future income. So, the N10,000 or N100,000 you spend today will be taken from what you earn in the days to come.

Truthfully, it decreases your future standard of living, by giving you less money to live on than what you have today. Make the most of the income you expect to earn by taking steps to become debt-free.

7. Get Out of the Mercy of Your Lenders

As long as you have outstanding debt, you don’t get to make the decisions about your money; your lenders do. They decide how much you pay them and when you pay them. Paying off your loan and becoming debt-free puts you in complete control of your money.

8. Debt Puts You at Risk of a Major Disaster

One of the worst things about being in debt is the risk it brings into your life. If you are already in debt and have no emergency savings to fall back on, you are always just one financial blow away from disaster. A job loss or a major medical crisis could leave you unable to meet the payments on your loan, which could result in: Constant calls from collections agencies, being sued for nonpayment, and possibly having your wages garnished, having your car repossessed.

Being debt-free removes these risks. It gives your budget room to breathe so you don’t have to worry about a single unfortunate event ruining your financial and personal life.

9. Increases Work Efficiency

Being in debt can also hold you back at work. Worries about money can keep you up at night, which makes you a lot less productive on the job the next day.

If you have reached the point where you have to deal with debt collectors, the problem is even worse. They’re likely to call you up at the office, interrupting your work, and impairing your productivity. Knowing the benefits of being debt-free is one thing, but actually, by contrast, paying off your debt makes your job more satisfying. You feel a lot more motivated to work harder when you get to keep the money you make, rather than spending it all on loan payments. 

10. Being Able to Help Others

It’s only when you have disposable cash, that you can help others, getting out of debt has one more big benefit: It makes it possible for you to help out others when they need it. For instance, you can lend money to friends or family members who need it to get through a tough period. If they’re struggling with a loan, you can also give them the benefit of your experience to help them figure out how to get out. Sharing your success story can inspire others and give them the boost they need to tackle their own financial problems.

In addition to helping out people you know, being debt-free allows you to give money to charity. Happiness economists have found that spending money to help others is one of the most rewarding things you can do with it. It’s a great feeling to know your money is helping to make the world a better place.

Debt in itself is a tool that can be good if used correctly. Please refer to our article on Good vs Bad Debt.

Conclusion:

Knowing the benefits of paying up your loan and why you should, is one thing, but actually figuring out how to do it is another. Fortunately, there are lots of resources out there that can help. Start by constant communication with your lender, it is understandable there are so many unforeseen circumstances and reasons why you might not meet up with your financial obligation, but your constant communication with your account officer or the lender gives the lender a better picture of what might have happened or transpired, also you do not have to wait until you have all the money before you pay like they say little drops of water make an ocean. Ensure that you do not borrow an amount you know you do not need or don’t have the repayment source to offset the loan.

If you are in really desperate straits with debt, try looking for outside help. See if you can negotiate with your creditors to reduce the balance you owe them. Consider talking to a credit officer about setting up a waiver/extension/moratorium, etc. to enable you to pay up your debts gradually.

References
https://www.investopedia.com/articles/pf/08/invest-reduce-.asp 
 https://www.moneycrashers.com/reasons-get-out-/
https://www.cnbc.com/2020/01/27/how-to-pay-off-.html
https://www.daveramsey.com/blog/how-to-pay-off-
https://www.moneyadviceservice.org.uk/en/articles/should-i-save-or-pay-off-
https://usacreditrepairinc.com/why-it-is-important-to-pay-it-off-/

The BizNurture MediLoan is a loan option with a discounted interest rate for businesses in the healthcare sector. The purpose of the product is to help beneficiaries cover funding while they invest in quality healthcare services and products as well as focus on their patients and practice. This will help support the fight for good health and provide support in the fight against COVID-19.

This loan is available to :

Private Hospitals, clinics, diagnostic centers that are registered with reputable HMOs and have operated for a minimum of 2 years.
Pharmacies either owned by a registered pharmacist or have a resident pharmacist with professional qualifications and license to prescribe drugs. The Pharmacist (or resident pharmacist) must be duly registered with the Pharmaceutical Council of Nigeria (PCN).
Other beneficiaries of the MediLoan include; Private Hospitals, Laboratories, and Medical Diagnostic Centres, Pharmaceutical Companies, Dentists, Medical doctors, Veterinarians, Optometrist, Diagnostic Labs, Pharmacies, Medical laboratories, etc.

Why MediLoan
The rationale for this product is based on the need to provide universal health coverage services under the umbrella of healthcare providers, enhance quality healthcare, and improve access to healthcare services. Hence, the reason why BizNurture’s MediLoan comes at a discounted interest rate.

Whether you need a piece of new equipment, drugs, pharmaceutical products, medical technology, preventive gear, or the upgrade of patient facilities, a loan could help achieve those objectives.

With this in consideration, the repayment system for the MediLoan has been designed to fit your needs. It is a gradual repayment system. Repayments gradually rise over the lifespan of the loan. That is, it is lower at the beginning of the loan tenor, and then increases towards the end of the tenor till the loan is completely paid off.


Graduated Repayment Plan
The graduated repayment system is a loan repayment system where the repayment term involves gradual increases in the payments over the period of the loan tenor. A graduated repayment system lets the borrower make smaller payments on their loan at the start of loan tenor and it gradually increases towards the end of the loan tenor. Our other loans- Working Capital Loan, LPO Financing, Invoice Discounting, FemPreneur loan, and Edubiz Loan, run on a standard repayment plan, where you pay the same fixed amount each month for the length of the loan tenor. On a graduated repayment plan, your payments will be lower at the beginning than what you would pay if you were to stay on the standard plan, but never too low that you aren’t paying the amount of interest that is accruing each month.

The Benefit Of A Graduated Repayment Plan?
There are benefits to the graduated repayment plan. The main benefit is that your payments will be low for the first few months of repayment, giving you space to focus on your practice and utilizing the loan effectively.

Payments will increase over time, but if you make monthly payments regularly, you’ll finish paying off your debt relatively quickly.

Pre-liquidation
You can pre-liquidate your MediLoan, and in the event where pre-liquidation occurs, there would be no pre-liquidation charges.

Loan Requirements
The following requirements and documents would be required to process a MediLoan application.

Must be located in Port Harcourt and Lagos
Must be 2 years or more in the healthcare business
Pharmacies either owned by a registered pharmacist or having a resident pharmacist with professional qualification and license to prescribe drugs.
Pharmacist (or resident pharmacist) must be duly registered with the Pharmaceutical Council of Nigeria (PCN).
Request letter on letterhead
CAC documents
6 months bank statement
Copy of LPO to be financed / invoice to be discounted
Copy of valid ID card
Guarantors (these are only required after the loan has been approved)
If a Business Name, two 3rd parties must guarantee the business owner
If a Limited Liability Company, the MD must guarantee the loan, as well as a 3rd party.
*depending on the type of loan, additional documents may be required

Let BizNurture’s MediLoan be your funding source. Visit the website at biznurture.com to apply now. MediLoan helps you cover your funding while you focus on your patients and practice.

INTRODUCTION
crises and risk managementThe role of Small and Medium-scale Enterprises in any nation cannot be overemphasized. Small scale businesses have contributed, in no small measure, to the growth of our economy. Through the establishment and existence of small scale businesses, the risk, crime rate and the rate of unemployment have been reduced to a great extent.

One of the key issues that plague Small, Medium Scale Enterprises (SMEs) is sustainability. SMEs are exposed to risks all the time. Such risks can directly affect day-to-day operations, decrease revenue or increase expenses.1 Their impact may be serious enough for the business to fail.

Risk can be broadly defined as any occurrence that can impact the objectives of a business entity.

FACTS ABOUT RISK MANAGEMENT
Risk Management is an ongoing process that can help improve operations, prioritize resources, ensure regulatory compliance, achieve performance targets, improve financial stability and ultimately, prevent loss/damage to the entity.2
Risk Management plays a key role in protecting assets and resources, along with ensuring that risks are reduced to an acceptable level.
The essence of risk management is to reduce the risks to a reasonable and manageable level, on an on-going basis.
Sound risk management reduces the chances that a particular event will take place. it does take place, sound risk management should reduce its impact.
STEPS IN RISK MANAGEMENT PROCESS
No doubt, many business entities need robust risk management systems but for MSMEs, it is a priority. This because they may not have the ability to manage and control risks due to their size and several limitations.

Risks can be rated as low, medium or high depending on your risk appetite.In building a sound risk management system, it is important to follow these 5 steps begin with categorizing risks

Step 1: Identify the Risk.
You should uncover, recognize and describe risks that might affect your business or its outcomes. There are a number of techniques you can use to find business risks, this is where you prepare your risk register.

Step 2: Analyze the risk.
Once risks are identified, you determine the likelihood and consequence of each risk. You develop an understanding of the nature of the risk and its potential to affect your business’ goals and objectives. You input these information in the risk register.

Step 3: Evaluate or Rank the Risk.
You evaluate or rank the risk by determining the risk magnitude. You make decisions about whether the risk is acceptable, or whether it is serious enough to warrant treatment. These risk rankings are also added to your risk register.

Step 4: Treat the Risk.
This is also referred to as Risk Response Planning. During this step, you assess your highest ranked risks and set out a plan to treat or modify these risks to achieve acceptable risk levels. How can you minimize the probability of the negative risks as well as enhancing the opportunities? You create risk mitigation strategies, preventive plans and contingency plans in this step. Thereafter add the risk treatment measures for the highest ranking or most serious risks to your risk register.

Step 5: Monitor and Review the risk.
This is the step where you take your project risk register and use it to monitor, track and review risks.

TYPES OF RISKS AND MITIGATION STEPS
1. Risk of Single point of failure
“A single point of failure (SPOF) is when the failure of a unit leads to the breakdown in the entire workplace or general system.” SPOF analysis is the “process of identifying, mitigating, and removing any part of a business process and system whose failure would paralyze the entire process or render it redundant.” 3

Where you have any of the following situations amongst others, you will require SPOF analysis:

If the resignation or death of a key staff affects the smooth running of your business.
The failure in your internet connections affects your service delivery for days or more.
If the shutdown of your supplier’s plant affects your production for weeks or months.
IMPACT & LIKELIHOOD:
Consider the following potential outcomes

Partial and / or total loss of business
Loss of customers to competitors
Loss of capital
Accumulation of huge debts
Reputational issues / risk
Total closure of business
MITIGATION:
Carry out a thorough audit of your process
Identify any SPOF
Make extra efforts to mitigate it.
Ensure that effective and sustainable plans are put in place to tackle any future occurrence.
2. Diversion of funds
This is the use of funds (especially bank loans), for purposes other than which it was approved. Be disciplined enough to avoid diversion of funds. Remember that the lender assessed your business and loan purpose prior to approval and disbursement.

IMPACT & LIKELIHOOD
Delay in loan repayment. Diversion might be dangerous as repayment might be difficult. Imagine forcing an unfed fowl to lay quality eggs, the same applies to making your business to pay a loan you never invested into it.

Leads to poor credit rating.
Denial of future credit facilities
MITIGATION
Avoidance is the key mitigation in this case. Avoid diversion! Be focused!
This is when you have different loans with different lending institutions. Several finance and lending institutions will definitely call you for loans to upgrade your business after COVID-19 pandemic. The onus is on you to determine which is appropriate at every point in time.

3. Multiple loans
IMPACT AND LIKELIHOOD

It negatively your credit rating when you have several bad loans with different financial institutions.
Denial of future loans.
Delay in processing of new loans.
Denial of securing a higher loan (repeat or downgraded).
MITIGATION

Determine and agree on the percentage of loan to your equity.
Avoid multiple loans as much as possible except where you can pay it conveniently.
4.Risk of High receivables
Some of your customers have little or no cash to run their businesses, hence, the need to sell on credit is high.

IMPACT & LIKELIHOOD
Loss of capital (in part or whole if not properly managed)
Reduced stock level.
Loss of profit
Increased in debt / borrowing
MITIGATION
Set a receivable limit.
Sell only on credit to well-known customers.
Avail customers with good credit history records.
Avoid selling to hit-and-run customers.


5. Risk of Theft, robbery/burglary, fraudulent deals
Due to the impact of COVID-19 pandemic on individuals and households, theft and robbery are likely to occur. This might come from your customers, members of staff or outsiders.

Put proper mitigation checks in place as this might ground your business depending on the impact.
Hire security guard, CCTV.
Payment into banks instead of accepting cash.
Regular stock-taking.
Consider buying from confirmed sources only.
6. High labour turnover
Post COVID-19 will be welcomed with high labour turnover. This might be due to various reasons such as the need to start own businesses, reduction in current salary, need to seek for a greener pasture abroad. You can have a pool of candidates to contact in case there are resignations with short or no notice period. Do your best to retain your staff, especially key and competent ones.

7. Concentration risk
Try as much as possible to diversify your customer base after COVID-19. Assuming all your customers are in the education sector, transport sector, aviation sector, Oil and Gas etc. Remember the recent ban of motorcycles and tricycles in certain parts of Lagos? You are encouraged as well to diversify your sources of inflow. If there is another pandemic next year, will your business be badly affected as it is in the period of COVID-19? Think of other related businesses / services you can render or offer to both your current and potential clients.

8. Competition
Many new entrants will invade business scenes after COVID-19. Several people who have huge funds in the money market were planning on where to invest before the outbreak of COVID-19. These set of investors are warming up to join the business race. Hence, the competition will be stiffer than ever before now.

IMPACT AND LIKELIHOOD

Loss of existing customers
Shortage in patronage level
Reduction in profit
Loss in market share
MITGATION

Offer unparalleled customer service that will attract repeat purchases.
Add variates of products and services.
Use price penetration strategy as applicable
CONCLUSION
Risk management is important in an organization because without it, a firm cannot possibly define its objectives for the future. If a company defines objectives without taking the risks into consideration, chances are that they will lose direction once any of these risks hit home.

Reference

https://worrells.net.au/newsletter-articles/management-guide-part-1/
https://docplayer.net/6492567-Risk-management-guide-for-small-to-medium-businesses.html
https://www.nap.edu/read/11183/chapter/7
https://www.academia.edu/15278359/Risk_Management_in_Micro_Small_and_Medium_Enterprises_MSMEs_in_India_A_Critical_Appraisal
https://continuingprofessionaldevelopment.org/-management-steps-in-risk-management-process/
https://www.forensicsinstitute.org/5-management-steps/
https://www.coursehero.com/file/p2ef45q/During-this-step-you-assess-your-highest-ranked-risks-and-set-out-a-plan-to/
https://www.myeasyiso.com/blog/5-steps-for-an-effective–opportunity-identification-process-in-the-organization/
https://blog.biznurture.com/
https://blog.biznurture.com/2020/03/managing-your-finances-in-a-crisis/

We know 2020 has been a rough and busy year, and then it got rougher when the global pandemic hit. However, it is best to focus on the positive and the good things we can do while we are surviving COVID-19.
We have designed a business care kit to help you in this period.

Download link- https://mailchi.mp/biznurture.com/carekit

The business kit contains a business plan template.

Writing a business plan gives you an opportunity to carefully think through every step of starting and running your business so you can better prepare and handle any challenges.

A good business plan can help to make a business credible, understandable, and attractive to someone who is unfamiliar with the business. Writing a good business plan can't guarantee success, but it can go a long way toward reducing the odds of failure.

The care kit also has and marketing tools and social media posts ideas to grow your brand online.
Download link- https://mailchi.mp/biznurture.com/carekit

Business finance - can often be defined as the provision of money at the time when it is needed by a business. It is the money business people require to start, run, or expand a business.
Importance of Business Finances:
Business finance is a necessary requirement for the establishment of any business. Money is the most important tool needed to bridge the gap between production and sales. Some important functions of business finances include:
To fulfill certain circumstances and any unexpected problems that may arise.
For the promotion of sales.
To take advantage of any business opportunities that may arise.
Keeping on top of your finances is one of the biggest causes of stress for small business owners, as the financial position of a business can make or break the future of the business in the long run. As a business owner, you may need to wear multiple hats so as to keep the business running and there are various challenges that small might arise. However, managing your finances is something that you have to be on top of.
5 WAYS YOU CAN STAY TOP OF YOUR BUSINESS FINANCES
1. Keep on top of your taxes:
You need to make sure that you keep on top of your taxes as a small business, it is recommended that you get help from a small business accountant to help direct the complex tax calculations. In order to keep an eye on your taxes, mark all the relevant dates in your calendar and diary. You need to remember and be aware of dates such as self-assessment returns, as well as when the new financial year starts.
Tax obligations depend on what type of business you run, and whether or not you have employees. You will need to ensure that you are putting enough money aside in order to pay your taxes when they are due. For instance, it is recommended that you put aside a minimum of 20% monthly, at the very least. This is very important, and if carried out properly on a monthly basis it can be bearable for a business.
2. Budget:
A budget is very crucial in ensuring that your finances and expenditure are visible to you. For example, you can highlight all your business expenditures in your budget, and it can provide you with a clear perspective of all the numbers that you need to keep an eye on. A budget can help you see if you need to cut business costs, and reveal where you can save money for your small business, along with helping you manage how much you can afford to spend on certain things. Revisit and regularly update your budget to ensure that it’s a continuously updated, working document.
3. Cash Flow:
You should ensure that you have a steady cash flow for your business, as poor management of cash flow can lead to negative consequences for the sustenance of your business. Essentially, cash flow is the money you have at a given time. To ensure good cash flow, make sure to have money before you have to pay money out and that invoices are paid to you on time. Confirm and make sure that you do all that you can to maintain a steady cash flow. You can ask for an upfront payment and give a discount as an incentive to do this.
4. Business Expenses:
You need to keep track of your business expenses because this will determine when you need to spend money, and when you need to hold back. A great way to track your business expenses is by using a credit card. When it’s time for taxes and claiming relief on business expenses, you will have a record of everything you have spent on.

A budget can also contribute to helping you manage your business expenses. For example, if you need to purchase a new piece of equipment because your current one is slow, or you need to redecorate, your budget will help you decide and prioritize when and where the money should be spent.
5. Accounting software:
Accounting software can really help you keep a watch on the financial state of your business finances. There is a variety of accounting software options available and you will need to carry out some research to ensure you discover and select the right one for your business. Some features of most accounting software include; invoice procedures, scheduling, reminders, and a place for the financial record to get different sorts of data.
Managing a business is not easy but it is important that you are ahead of your finances. ignoring your finances for a long time puts you at risk of missing important issues on time, and less likely to make better money decisions.
References
https://articles.bplans.com/ways-to-stay-on-top-of-your-business-finances/
https://marketbusinessnews.com/financial-glossary/business-finance/
https://www.companybug.com/five-ways-you-can-stay-on-top-of-your-finances/
https://www.toppr.com/guides/business-studies/financial-management/meaning-of-business-finance
https://marketbusinessnews.com/financial-glossary/business-finance/

We have a free webinar coming up for business owners on the 21st of April. All you have to do is click on the link to register for the free webinar. https://forms.gle/usNze6pVMJkgdqJWA
Our Legal Specialist, Onowe Ajulo will be talking about survival and growth post COVID-19, as well as legal and business tips for SMEs. Things are changing and the current time we are in requires us to think strategically and manage legal risks effectively. This and much more will be discussed during the webinar. Click on the link to register now. https://forms.gle/usNze6pVMJkgdqJWA
The invite link and other information will be sent to your email after registration.

Onowe Ajulo is a sound legal professional with experience in the provision of legal services to companies particularly Small to Medium sized Enterprises. Her core area of competence includes; compliance monitoring, contract review and drafting, management of the company secretariat and provision of legal advisory services. She is focused on the provision of cost-effective yet legally compliant solutions to everyday business problems.
Onowe holds a Bachelor’s Degree in Law and a Masters Degree in Business Administration.

Do not miss this!!

A loan is a form of credit facility. It is a contractual agreement in which a borrower receives something of value from a lender and agrees to repay (usually with interest) at some later agreed date.

Every loan consists of 3 different parts:

The Principal 
The Interest
The Repayment

The principal is the cash made available by the lender to the borrower to be repaid back at a later period.

The interest, simply put, is the extra money you pay to the lender for using the principal for a certain period of time.

The repayment is the total amount you pay to the lender at the end of the agreed period of time. This is the addition of the principal and the calculated interest. The loan repayment could be spread over a period of time, based on the mutual agreement between the lender and the borrower, to make the payback easy for the borrower.

FORMS OF LOAN

There are 2 forms of loans

Secured and Unsecured Loans

Secured loans are loans where borrowers put up asset(s), such as landed property or vehicles as collaterals. This gives the lender more confidence in giving the loan.
Unsecured loans are loans that are approved without collateral. This form of loan puts the lender at more risk.

Below are loan terms you should know before applying for a loan

1. DEFAULT CHARGE

The default charge is an additional payment the borrower pays to the lender due to failure to make the repayment as at the mutually agreed date. This is always included as a form of percentage charges on either the principal, the interest, or both principal and interest, and signed by both parties in the loan contract.

2. CREDIT HISTORY

There is a credit report for every loan borrower which shows the past loan behavior of the borrower (individual or organization). This is checked with the consent of the borrower at the point of applying for the loan.

The credit history goes a long way to give the lender an in-sight about the past record of the intended customer. Hence, as a borrower, it is advisable to maintain good records and ensure early repayment as these are important on any form of loan taken.

Your credit history determines your creditworthiness, and sometimes, your creditworthiness plays a crucial role in the interest rate and loan amount some financial institutions offer you.

3. INTEREST CALCULATIONS

Different financial institutions have their methods of calculating interest rates. Some of these  include:

SIMPLE RATE: This is always multiplied to the principal at each payment period to find the interest due.

COMPOUND RATE: This charges interest on the principal and on the previously earned interest. For example, if you borrowed  ₦100,000 at the rate of 5% per annum. You would owe ₦5,000 interest in the first year. In the second year, you would owe ₦110,250 as your interest would be calculated as 5% of ₦105,000. 

AMORTIZED RATE: This is designed in such a way that the borrower pays a larger part of the interest from the beginning of the repayment than the principal. And over time, the amount of the principal in each payment will increase, bringing down the principal and amount of interest charged on the principal.

FIXED RATE: This rate is stated upfront and it stays the same over the period of the loan.

VARIABLE RATE: is can also be called an adjustable rate. This rate changes over the life of the loan to reflect changes in the market interest rate. In order words, your interest rate could go up or down over the term of the loan. 

4. PAYING DOWN YOUR LOAN

A loan that is ordinarily supposed to run for 6 months could be paid down in advance, depending on your income projections, or the achievement of the purpose of the loan. Paying down your principal and wrapping up a loan quickly, means you can save money that you would have spent on interest payment to the lender.

In conclusion, just before you make the final decision to apply for a loan, try to determine the following:

The loan purpose: What do I need the loan for?
Is there any other way I can raise money at this time without taking a loan in order to save myself from paying interest?
Do I have any running business that can pay back this loan in case anything goes wrong along the line with the loan?
Do I have enough experience in the business I need this loan for?
What is the appropriate period I can make use of the loan?

Once you are able to ask yourself these questions and more, and you are convinced within yourself, then, you can act accordingly.

The current outbreak of COVID-19 in Nigeria was not foreseen by anyone. Until recently the spread had been limited to other places in the world. Now it is right in our backyards, affecting our businesses and we are all reacting to it in the best ways we can.

If you don’t have an emergency fund (which experts say should be around three to six months’ income), don’t panic. To help prepare for the financial uncertainty that many of us are facing and will be facing as the coronavirus outbreak progresses, here are some money moves you can make now. These tips would help to protect your finances and build up a rainy day fund.

1. Scale back
This is not a time to be spending unnecessarily or excessively. Take a look at your cash flow and the money leaving your business, then cut back on non crucial and non-essential spending. Also, as funds come into your business, be sure to keep some money aside for your emergency fund. Another good tip is to put any money you are not spending due to the outbreak into the emergency fund. If you have an emergency fund already, you should still boost it by topping it up so it lasts longer as no one really knows how long the coronavirus outbreak will last for and what will happen after.

2. Build an emergency budget
This is different from emergency savings. It might be too late for you to start an emergency saving, but do not wait till it’s too late to create an emergency budget based on your reduced level of income.

Your emergency budget should contain core things your business needs depending on the current situation. It should be planned in such a way that it ensures that you can still run your business, and your business is able to survive this period. Start by outlining your most important expenses: fuel, data, rent, and other essentials. Consider your staff when making these decisions as well as the impact it will have on your clients and business.

3. Diversify
Coronavirus is already rewriting the future of the economy and businesses as we know globally. The business model that worked last month will probably not work this month. It is time to diversify. Help your business survive this period. Diversify and come up with services or products that you can offer, therefore taking advantage of the current situation.

4. Don’t take drastic decisions
As much as you want to stay safe and ensure that your employees are safe, don’t take drastic decisions. If you have obligations to fulfill that you cannot, communicate with the necessary parties. Don’t just ghost on them. Also make sure that communications between parties, especially where there might be a change in the contract, is written not just oral. It should be written and agreed on by all the involved parties.

5. Contact your lenders and loan servicers
If you are not able to pay back your loan or you are having difficulty or challenges paying back a business loan, contact your lender immediately to discuss your options. When you start missing deadlines without providing an explanation, there could be serious repercussions and it might also leave a negative impact on your credit.

When contacting your lenders, inform them of your situation and how much you can afford to pay at the moment. By being transparent with your lender, they will be more likely to trust that you are a responsible borrower. This will help you in the future if you decide that you’d like to apply for additional financing or a bigger loan. Remember that business will still have to continue after the cor60onavirus outbreak has passed.

6. Remember that this crisis shall pass
A final thought: The most important thing to do now is taking a deep breath and resist the urge to panic. Remember, do not panic. It will only lead to irrational thinking, which leads to poor financial decisions which might leave a negative impact on your business and reputation.

The COVID-19 pandemic is a terrible and frightening situation. There’s uncertainty surrounding how long the outbreak will last, how bad it will get, and many other variables. But we will get through it.

Stay healthy and stay safe.

10 WAYS DIGITAL MARKETING CAN HELP YOUR SMALL BUSINESS

Digital marketing is the component of marketing that utilizes the internet and online-based digital technologies such as mobile phones, desktop computers, and other digital media platforms to promote products and services to a larger audience. Marketing refers to activities a company undertakes to promote the buying or selling of a product or service. Marketing includes advertising, selling, and delivering goods, services or ideas to consumers or other businesses.
More and more small businesses are implementing digital marketing tactics to effectively reach and engage with their target consumers online. Digital marketing is very important in today’s world of technology and the internet that it has become crucial for businesses to employ digital marketing strategies and tactics. This innovation has helped companies grow and surpass their competitors.

One of the most important benefits of digital marketing is that it is the most cost-effective way to market your business. Compared to traditional marketing which is difficult for small businesses with limited budgets due to the costs associated with traditional marketing tactics like; shooting a tv advert and paying for advert slots. Digital marketing strategies and solutions allow small businesses to carry out more cost-effective digital marketing activities to build their brand, reach a larger audience and grow their business.

Digital marketing includes; social media marketing, pay per click marketing, email marketing, SEO, blogging, content creation, and affiliate marketing. 

Ways digital marketing can help small businesses include: 
1. DIGITAL MARKETING LEVELS THE PLAYING FIELD

Digital marketing is the new playing field for brands. Either you innovate, get on the digital playing ground or get left behind. As a business, you are never too small to market your product or service on digital platforms. Digital marketing helps brands reach a larger audience. If you stick to one region, and your competitors are advertising to a larger audience through digital ads this is likely to lead to the inevitable death of your business. With the growth of technology and innovative digital marketing activities, digital marketing has made it possible for small businesses to reach their potential customers in a more cost-effective way and increased the chances of small businesses going toe to toe with big businesses.

2. DIGITAL MARKETING INCREASES BRAND VISIBILITY

There are numerous digital platforms where your small businesses can create accounts, or pages to promote your brand. You can advertise your product on various online platforms. Facebook allows you to promote your product or service for as low as $5. Instagram, Twitter and so on also allow for sponsored ads. Paid advertisements can help you in promoting your business. It’s an effective way to increase visibility which as a result can help with business growth.

Your competitors are online, your target audience is online; you should, therefore, get online and create awareness for your brand. It costs zero dollars to list your business with google my business as well as create a profile that lets you easily connect with customers across Google Search and Maps.

3. HELPS YOU TARGET YOUR IDEAL AUDIENCE

There are 7,771,292,395 people in the world as of 2020, and 4,504,096,279 internet users as of 2020. However, they all can’t be your target audience. If your product or service is gender-specific, it means that your target audience has been narrowed down to the percentage of that certain gender, and if it is region-specific it has been narrowed down more. What digital marketing does is to target a specific audience tailored for your product at their convenient time to carry out the desired action you want.

This is as opposed to showing your ad to a general population, or group at a certain time and hoping that a percentage of the audience carries out the desired action. It helps you to target your ideal audience. On average, we spend 3 hours and 15 minutes on our phones daily, so digital marketing helps you target your audience where they are at their own time.

4. YOU CAN CALCULATE METRICS LIKE REACH AND CONVERSION

How do you know if your marketing is working? Unlike traditional marketing where it can be difficult to track success, digital marketing helps you measure your success per campaign over time. Digital marketing helps you work based on facts, history, and behavior patterns. It takes the guesswork out of determining whether your marketing is actually working. Instead of assuming that your target audience will be watching television at 8 pm or passing by a certain billboard at a certain time. Digital marketing helps you meet your audience at their own convenience. You can also see what strategies are working and which need to be removed or modified for greater success.

With digital marketing, you can allocate your budget more effectively. Since you have eliminated most of the guesswork, you know what is working and what is not working. You can spend more money on effective strategies and those that are not fully effective, you remodify to make the most of your ad budget. 

5. DIGITAL MARKETING IS CHEAPER

As a small business, your marketing budget will be small compared to your bigger competitors with big marketing budgets. Digital advertising is 40 percent cheaper than traditional forms of advertising. Gartner, a research and advisory company, reports that 41 percent of digital advertisers put the savings from their digital ad campaigns back into their businesses.

You don’t have to hire a big production team, photographers or professionals to push content online. At the very least, all you need is a smartphone to push out content and engage with your target audience online.

6. DIGITAL MARKETING INCREASES SALES

Digital marketing helps to create awareness for your brand online by allowing you to put your product or service online and promoting it to a large audience to generate sales. It facilitates high conversion rates generated by effective digital marketing strategies and techniques which deliver profitable benefits to your business in terms of better and higher revenues.

7. DIGITAL MARKETING PROVIDES BETTER ROI FOR YOUR MARKETING INVESTMENTS[b]
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The cost of traditional marketing is too high for small businesses to afford but digital marketing can provide a better return on investment which is measurable. Digital marketing can easily be tracked, monitored and conversion measured when the audience carries out activities like providing contact information or making a purchase. Digital marketing helps to generate a steady flow of targeted traffic that converts into potential customers and sales.

8. HELPS YOU CONNECT WITH YOUR AUDIENCE AND CREATE BRAND LOYALTY

With digital marketing unlike traditional marketing, there is room for feedback. You can get what your audience has to say and you can also communicate with your audience easily. Digital marketing helps you to bring your brand closer to your audience and your audience closer to your brand. It helps you to understand your audience, build a community and foster brand loyalty. It also helps you provide solutions to solve your customer’s problems based on feedback. 

9. YOU CAN OFFER IMPROVED CUSTOMER SERVICE

Good customer service is essential to your business’ success. Digital marketing allows your audience to reach you faster, this helps you deliver your customer service activities faster and easier. It enables you to answer questions and resolve issues easier and faster.

10. DIGITAL MARKETING BUILDS BRAND REPUTATION

Reputation is one of the most important assets for a brand. Your brand reputation communicates to consumers whether or not you can be trusted with their time, energy, and money. The power of digital marketing lies in its ability for attracting targeted traffic. A good reputation will help attract customers who will buy your product or service because they can trust your brand. Digital marketing allows you to control your brand’s narrative by pushing out brand messages that align with your mission and vision. 

Delivering on what you promised will help you develop a better relationship with your target audience, and help with the decision-making process for prospective customers and their transition into paying customers. This will also prove beneficial for your brand reputation, as satisfied customers will most likely tell other people about their experience with your brand, product or service which will attract more customers.

Digital marketing is here to stay and your business is not too small to jump on the digital marketing bandwagon. The tactics, technology, and strategy of digital marketing can also help you grow your small business to bigger business, and achieve your business dreams. The business world is constantly changing especially with the growth of technology and digital marketing, so adapt and grow with the trend. This is a race that you do not want to be left behind in.

References 

https://en.wikipedia.org/wiki/Digital_marketing
https://www.investopedia.com/terms/m/marketing.asp
https://www.sabaseo.com/benefits-digital-marketing-offers-small-business/
https://digitalmarketingskill.com/ways-digital-marketing-can-help-boost-business/
https://blog.biznurture.com/2019/08/effective-methods-to-promote-small-businesses-on-a-limited-budget/
https://www.worldometers.info/world-population/
http://internetlivestats.com/internet-users/ 
https://blog.rescuetime.com/screen-time-stats-2018/

Congratulations your loan request has been approved and no doubt you intend to use your newly acquired funds to achieve your business dreams, make changes and continue growing. The problem of financial restriction has been solved. Now, there are a million opportunities that the fund represents but the most important thing is to make the loan work for your business.

It is important to note that getting a loan from any finance company is one thing and putting the loan into proper usage is another thing. So before using funds from your business loan, consider how you will spend it and work out what will be best for your business. You can also consider getting expert advice and even work out cash flow projections to ensure that you are making the most of the loan.

How then do I make my loan work for my business?

Before a loan can work for you or your business you need to have identified the needs or the purpose of the loan. This is because it is always said that when the purpose of something is unknown abuse is inevitable. Any traces of abuse in terms of loan usage can be catastrophic for your business as such, getting it right at the outset of loan application is absolutely essential. 

As expressed above, understanding the specific needs of the business at a particular period of time can go a long way in making your loan work for you. Do you need to acquire more staff with the expectation that the addition of new staff will bring increased revenue or make the business more productive? Are you suffering from basic business equipment that you may need to acquire or repair? Have you also considered the extent of visibility your business enjoys with your target market and how much will be channeled into such? What about cash to meet up your business’s daily operational needs? Do you need the fund to expand your business operations or to cover cash flow fluctuations? These are germane key issues that must be closely examined before applying for a loan. 

We shall examine each business need within the purview of making the loan work for your business.

1. COVER CASH FLOW FLUCTUATIONS

Cash flow is an issue for many small to medium-sized businesses. Delayed payments can mean your business is left without vital income for up to 90 or even 120 days. Depending on the type of business loan you have acquired, you might consider using it to cover gaps in cash flow.

2.  EXPAND YOUR OPERATIONS

If your business is doing well, it might be wise to use your loan funds to expand. You may consider opening up a brand new retail location, a second warehouse, a brand new office space or even start selling online products overseas. Restaurants are an excellent example of businesses that would have the benefit of having multiple locations.
Expanding your customer base is always a win just ensure you’ve done your research so the investment is worthwhile.

3. MARKET YOUR PRODUCTS OR SERVICES

Marketing can make or break many businesses and ignoring marketing due to the costs involved can end up being a costly mistake in itself.
Whether it is online marketing, an ad campaign or getting some PR expertise, you’ll need money to get started. Make sure you choose the right type of marketing for your business to ensure you get the best return on investment.


4. BOOST YOUR ONLINE PRESENCE

Having an online presence, whether it’s a website or a social media page, is invaluable these days. By establishing and maintaining a website and / or social media accounts, you can increase your customer base and also your marketing capabilities. However, you may need to hire professionals to execute this.

5. PURCHASE NEW EQUIPMENT

Purchasing equipment can take your operations to a new level, whether it’s industrial equipment or a new point-of-sale (POS) system. This can also improve your cash flow If you are currently leasing equipment, as you won’t have to make regular lease payments.

When considering whether or not to purchase equipment with your loan, look at how much has been approved for your business and consider how much you really need the new equipment. There’s no need to spend your funds just because you have them. Most lenders would approve only what your business needs.

6. MAINTAIN A GOOD RELATIONSHIP WITH YOUR LENDER 

Make sure that you keep a good relationship with your lender and make payments on schedule or even ahead of schedule if circumstances allow. If you are going to make a late payment or you are unable to pay for a while, make sure you inform your lender.This is a good way to ensure a healthy relationship with your lender and make it easier if you need to borrow more or request for another loan in the future.  

Having a game plan for how you are going to spend your business loan is important. Your business would benefit from adding new products, entering new markets or opening a new location whatever it is you want to use the loan for. Whatever it is, before you apply or accept a loan for your business make sure you’ve thought through the most strategic way to use it. Also, make sure you read and understand the terms and conditions stated in the loan agreement. Look at the pricing, interest rate, as well as your monthly or weekly installment to determine if it would be ok for your business. Ask questions to know if there are hidden charges apart from what was communicated to you. Also ensure that your projected inflow can service your loan repayment more than enough. 
In conclusion, if all these things are put in place before and after getting the loan you are on your pathway to making your loan work and deliver valuable revenue results for your business.

Filling out an online loan application is relatively simple. Most loan applications from online lending platforms ask for the same information with the goal of determining whether you are financially stable and responsible.

Few tips to help complete your online loan application include:

1. Provide your personal information
It is important that you provide your personal information and make sure that the information provided is correct. The purpose of asking for your personal information by the lender is because they are looking to see if you have a stable residence and if you are who you claim you are. Information that you will typically provide include:

Name – Last, first, middle, surname, and maiden name.
Address including city, state, and zip code
Phone numbers – Primary and secondary numbers.
Functional Email address
Your BVN (Bank Verification Number) is mandatory to secure credit. The number will be used for identification purposes and to obtain your credit history.

2. Business Details and Employment History
The type of loan you are applying for will determine whether you provide your business details or your employment details, You could apply for a business loan or a personal loan.

Personal Loan: If you are currently unemployed, your application will probably be rejected. A solid employment history demonstrates that you are responsible and have the ability to make payments. The longer you have been at the same job, the better. The application will ask for the:

Name of your employer
Your position
Length of employment – Start date
Current salary
Employment status – Probation, Contract, Part-time, Full time etc.
Business Loan: Business loans help to cover expenses or urgent cash needs for small businesses in cases where there is a need for extra funding or a loan to carry out business activities. Most financial institutions that give business loans will definitely ask for:

The type of business you are into – Education, Trade and Service etc.
Address and phone number of business
Business Registration documents
Company Account statement (tenure required varies with individual institutions)
Copies of Sales/Purchase invoices (optional)
Other necessary documents as requested by the lender

3. Review the credit agreement before completing the application
The credit agreement is often required before the borrower can use the funds from the lender. It outlines the terms and conditions to the borrower as required by the law, and explains the binding agreement between both parties.

You have to make sure that you pay attention to the Interest Rate (IR) and the late penalty charges (i.e. the amount you pay if you make a late payment). If you are not clear about any of the terms or conditions, contact the customer care for further clarification or inquiries before you start filling out the application.

4. Submit the form
Review the application and correct any errors or omissions, date your application, confirm the information you gave is correct and submit the application.

5. Wait for an answer
The two outcomes for your application are either accepted or rejected. If everything checks out, your application will be accepted and you will receive your money. If your application has been rejected, read the rejection letter to determine the reason(s). Common reasons for rejection are:

You made a mistake on your application.
There is a problem with your work history or financial information. If you have changed jobs recently or are unemployed, your application may be denied. Consider reapplying when your income increases or you have been employed for more than 6 months.
There is a problem with your credit report. If you have credit problems such as low credit score, late payments, or multiple inquiries into your credit history, you may be denied. You can improve your credit reports by making payments in a timely manner and clearing all outstanding debts.
Completing your online loan application is important. It determines whether your loan application will be accepted or rejected. Before submitting your loan application, make sure that you read and agree with the terms and conditions, and that you submit all of the required information correctly.

References
https://blog.biznurture.com/2020/01/loan-application-applying-for-a-biznurture-loan/
https://www.bankrate.com/glossary/c/credit-agreement/
https://www.wikihow.com/Get-a-Loan

What is Cybercrime?
Cybercrimes are criminal activities carried out by means of a computer or the internet.
What are the possible effects of Cybercrime in Organisations?
As an organization, it is very important that you protect yourself from a data breach and prevent a situation where secure or private/confidential information is stolen and released or used against your organization. Data is the most crucial asset in businesses today and you should make sure that you protect yourself from a data breach.
Any type of security breach can be catastrophic for any business especially a data breach. Listed below are the possible damages cybercrime can cause to an organization:
The loss of intellectual property and sensitive data
Opportunity costs including service and employment disruptions
Damage to the brand image and company reputation
Penalties and Compensatory payments to customers (for convenience or consequential loss) or contractual compensation for delay
Cost of countermeasure and Insurance
Cost of mitigation strategies and recovery from cyberattacks
Loss of trade and competitiveness
Distortion of trade
Job loss

How can you protect your business from cybercrime?
You can protect your business by considering the following tips below to avoid being targeted by cybercriminals.
1. Keep all software updated and regularly patched
One of the numerous ways hackers gain access to computer systems is via code defects; some of which remain unnoticed for years before they are patched. If you do not update software regularly, you could leave your networks vulnerable to anyone with a little bit of technical knowledge. Code defects can affect all software, from operating systems and browsers to specialized software and more.
2. Invest in a reliable Virtual Private Network (VPN)
A VPN (virtual private network) creates a secure connection over a less-secure network between your computer and the Internet. A VPN makes your Internet Protocol (IP) essentially invisible to hackers and makes sure your online traffic is encrypted which cuts down all possibilities of stealing passwords or financial information or tracking your activities. There are many VPN options available. Before you choose a service, determine your organization’s needs and carefully research which one is the best fit.
3. Educate and train your staff
It is important that you educate and train your staff on cybersecurity. Even where you use the latest antivirus and firewall software, you won’t be fully protected if your employees do not follow the rules of digital security. Over 90% of security breaches happen not as a result of hackers overcoming the network’s protection, but because an employee unwittingly opened up a door – for example, by using a weak password or falling victim to a phishing email.
Investing in cutting-edge security software but failing to educate your employees in cybercrime prevention is tantamount to boarding up the windows while leaving the front door wide open.
4. Use Strong Password (most preferably alphanumeric) and set up a 2-step verification / 2-factor authentication
Using a strong password is important. A password is considered strong when it has at least 8-digits consisting of alphabets (lowercase and uppercase), number and symbol. Strong passwords will be difficult for anyone or a hacker to guess. It is also advisable to periodically change one’s password on all platforms used. Do not use the same password on all platforms. The implication of this is that if one gets hacked all others are at risk. Passwords shouldn’t be saved on notepads: rather make use of a password manager, and never share your password with anyone.
2-factor authentication is a 2 step verification of password to ascertain the rightful owner of an account,this is done such that after putting in password on a platform, a code (6-digits) will be sent to either phone number or email (depending on which was used during the 2-factor authentication setup) of the account owner to confirm that he is the one trying to accessing the account and not an unauthorized person.
5. Divide, encrypt, and back up sensitive data
Data is the most critical asset in businesses today and protecting it should be a top priority. Put it behind as many layers of security as possible. Duplicate it in different storage devices and divide it into segments. This approach may be cumbersome but in case of a security breach, hackers will not get access to your entire data bank. Use advanced encryption methods with the latest encryption software update to make sure that stolen information will be useless to hackers. Finally, back up your data regularly. Cloud solutions such as Backup as a Service (BaaS) and Disaster Recovery as a Service (DRaaS) are the most efficient ways to ensure that this happens.
6. Set up strict limitations on company computers
Restrict your employees from installing unauthorized software on company computers without approval from your system administrator and also control the use of external devices (flash drive, HDD). This will help prevent malware from infecting your company’s network and reduce wasted time.

These days, cybersecurity can no longer be treated as an afterthought. A security breach can be catastrophic for any business, even those without a strong digital presence, so ensure that you protect your business from cybercrime.

Good records play a very important role for any individual or entity that creates them: providing users with historical insight and serving as a basis for future forecasts. As a business owner, good financial records will serve this same key purpose for you: telling the story of your business and helping you to recollect important details, easily.

The history of record-keeping is as old as the creation of the world. Starting from the earliest “oral tradition” records kept by Grecian societies, to electronic databases maintained in this social media age, records have always formed an important part of human life.

Although effective record-keeping could be a herculean task at the onset, in the long run, the benefits, outweigh the effort required to create and maintain such records. The motto you need to keep in mind when it comes to financial record keeping is “it is better to have them and not need them than need them and not have them.”
Benefits of records keeping in a business include but are not limited to the following:
Showing the financial health of a business. That is, whether the business is growing, static or nosediving.
Providing information that will be useful for internal decision making.
Helping you to keep business expenses under check and control.
Enhancing your chances of securing loans and grants from financial institutions and donors.
Providing information to investors, creditors, suppliers, government agencies and other stakeholders both within and outside a business organization.
There are many financial records that are important to the running and success of a business, but for the purpose of this write-up, we shall limit the discussion to four.

1. Statement of Profit or Loss and Other Comprehensive Income
This was previously referred to as Profit or Loss Account. This is a statement that shows the profit earned or loss incurred by the business entity during a specified period. Basically, the statement of profit or loss measures the financial performance of a business during the period. The main function of the income statement under which the profit or loss is determined is to ascertain the net profit or loss resulting from the business operation.

One major business goal in every organization is profit-making. Hence, it is imperative for every organization to ascertain whether the business is making a profit or making a loss. This is the record that shows the business owner how profitable the business is and this can aid the management or business owner in making informed decisions.

This record appears to be one of the most important records that every business owner must keep because it forms the basis of any decision or line of thought and the importance cannot be overemphasized.

2. Statement of Financial Position (Balance Sheet)
A Statement of Financial Position is the financial statement showing the assets, liabilities and owners’ equity (i.e. capital plus reserves) of an enterprise on a specific date.

This statement shows the financial wealth of a business entity at a date. Basically, it shows the assets owned by the entity, liabilities owed by the entity as well as the owners’ residual interest (i.e. equity) in the business. It also shows the presentation of the summary of assets and liabilities in a well-arranged form, so that the financial position may be clearly ascertained. In summary, this statement shows the assets and liabilities of the company.

Assets are resources that are controlled by an entity as a result of past events from which future economic benefits are expected to flow to the entity. They are resources that the business can use in generating revenue for the company. This could either be liquid asset (e.g. cash), non-current asset (e.g. plant and machinery, building, motor vehicles), or other forms of assets. The advantage of assets acquisition for a business is that it helps to reduce capital and operating expenditure, and this will have a positive effect on the profit of the business. However, if your business is a startup and you are just trying to build your capital base, you may not want to invest all your capital on assets since it is not all assets that will generate immediate cash for your business. So, it is important for you to understand your business and understand the type of asset that you need before acquiring them in other to avoid asset redundancy.
Liabilities are obligations settled by the entity as a result of a past event, which are expected to result in an outflow of economic resources from the entity. those obligations meant to be settled are liabilities. These are obligations whose benefits the entity has enjoyed before. The benefit may have been enjoyed for more than one year (Non- Current) and it could have been enjoyed within a year (Current). It is not absurd for businesses to incur liabilities, but it should be kept to a small. It is advisable for a business to grow within its pace and constantly watch its liabilities so that it does not outgrow the business. Although there are circumstances that the business will have to incur debt to finance the business, such as taking a loan, this should be settled as soon as possible to protect the creditworthiness and integrity of the business as this is one of the intangible assets (goodwill) of the business.
It is important to keep these records to know if you are incurring too much liability which is not healthy for the business or whether the business needs to increase its asset base for better operational activities.

3. Debtors Receivables Ledger
This is a finance record that shows how much the company is expecting from its customers, as a result of previous transactions. It is important to keep this record because it helps you to plan your operations. For instance, it might be better to go after customers owing you instead of borrowing, and incurring interest expense. Even if you have to borrow some funds, this record will help you to know for how long you will have to borrow because it will show when the customer is expected to pay back the debt.

If you have to meet an urgent cash requirement in month four, and you are expecting one of your customers to pay back his obligation in month five, you may have to borrow money for just one month and return the money the following month. This will prevent you from holding idle funds ( i.e. the customer paying you back the debt obligation and the borrowed funds) and you will be able to save some interest expense that would have been paid when you decide to borrow for longer terms.

Keeping this type of records helps you to know how long you should borrow. It also helps you to ascertain how much of your working capital is tied down with your customers. The ledger will also help you in the future in case you decide to give out to bonus or provide a trade discount to your loyal customers.

4. Cash Flow Statement
A cash flow statement is a financial statement that provides valuable information about a company’s cash flow and how changes in balance sheet accounts and income statement affect cash and cash equivalents. It has three sub-division namely Operating Activities, Financing Activities, and Investing Activities. The statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills and returns on probable investment. It also allows insights into the company’s future income needs.

In conclusion, in this article, we have identified and discussed four financial records that any business owner must maintain namely: Statement of Profit or Loss and Other Comprehensive Income, Statement of Financial Position (Balance Sheet), Debtors Receivables Ledger and Cash Flow Statement.

As a business owner navigating the current competitive business environment and focused on breaking even in the long run, it is important for you to ensure that you begin or continue to keep the records stated above as this will ensure that you enjoy the benefits we have discussed.

For many small to medium-sized businesses particularly those operating in Nigeria, it would appear that a review of legal issues affecting business operations seem to take second place when compared to profitability. While profitability is considered a key metric for measuring the success of a business idea, there are also key legal matters that could affect the viability of the business as a whole; a sudden fine by a regulator can be a really disturbing event for your business. For a business owner interested in developing a sustainable well-structured business, it is necessary to take certain legal issues into consideration in the early days of your business. These tips are as follows:

1. Register your business with the Corporate Affairs Commission (Nigeria)
This is the first step you should take as a business owner following the recognition that your product or service is one that is profitable. Many business owners run away from registering their businesses due to fear or ignorance.

There is so much that can be said about the most suitable form of business association to be adopted by your business and the advantages or disadvantages of each form of business association. Suffice to say at this point that for commercial businesses, a business entity can register as a “business name” or as a “company”.

A business name would be your best bet if you do not desire to spend a lot on the cost of registration yet. It would however give you the benefits of limited liability (separating the liabilities of the business from your personal liabilities).

The first stage of registering your business is to ensure that the name you are choosing for the business is not similar to any name that has been registered at the Corporate Affairs Commission (CAC). You can confirm this by going to the website set up by the CAC.

2. Obtain necessary licenses and permits
Another necessary step is to identify laws both at the federal, state and local government levels that affect or are applicable to the business of the company. Once you have identified such laws, the next step is to assess the level of your business’ compliance with applicable laws. There are general foundational laws that apply to all business such as the Companies and Allied Matters Act, Companies Income Tax Act, Personal Income Tax Act, Value Added Tax Act and Labour Act.

Other laws that may affect your business depending on the size of your staff include National Pension Reform Act and National Housing Fund. Other laws are industry-specific; for example, if you play in financial services, the Central Bank of Nigeria Act and other guidelines released by the Central Bank of Nigeria from time to time would regulate you. It is best to do what is known as regulatory environment scanning in the early days of your business to ensure that you do not fall foul of the law and end up with a fine or any other form of penalty.

3. Agree on the structure of the business
This is another legal tip and this step is closely related to step 1. Prior to commencing operations, you need to determine the structure you desire to adopt for your business. Will the business be run solely by you or would you be running it in partnership with other individuals?

If the business is to be registered as a business name and run in collaboration with other individuals, it would be necessary to decide on key terms of the relationship and reduce this into a partnership agreement. On the other hand, if you have decided to run the business as a limited liability company, you might want to consider outlining the agreement of the shareholders (share allocation, dividends, preemptive rights etc.) in a shareholders’ agreement.

4. Try to ensure that contracts with vendors are in writing
As you engage third parties to carry out work for your business as much as possible reduce the terms and conditions of these relationships into writing to govern the relationship. For example, to manage your company’s social media, develop or maintain software or to purchase goods or services on your behalf. The legal agreements need not be voluminous as long, as it documents the agreement of the parties and is signed properly.

5. Protect intellectual property
You have registered your business and your brand name is growing. Customers are associating your brand with prompt service and your customer loyalty is increasing daily. It is time to protect your intellectual property. Legally, Intellectual property registration protects the creations of the mind. Intellectual property can be registered as a trademark, patent, design or copyright.

Big brands such as Coca Cola have registered the “Coca-Cola” logo as a trademark and the Coca-Cola bottle as a registered design.

As a business owner, you can choose to register your business logo as a trademark or if you invented a unique product, register your invention as a patent at the Trademarks, Patents and Design Registry in Nigeria. Click here for more information.

6. Comply with your employment obligations
As a business owner in Nigeria, once you begin hiring employees, take time to understand the payment obligations under the Labor Act, National Pension Reform Act, National Health Insurance Act, Employee Compensation Act etc.

7. Adopt a record-keeping program
Once you begin to remit taxes, draft agreements and hold meetings, ensure that you designate an employee to keep your payment receipts, agreements, minutes, licenses and CAC Registration Forms appropriately.

In conclusion, though profitability is a key metric for judging the growth and “scaling” of a small business in Nigeria, it would be greatly beneficial to take note of the aforementioned legal tips in order to build a business that lasts.

A small business loan can be a valuable resource but it's important that you're responsible with spending and repaying it. When taking out a loan, you should remember that paying back the loan is a priority and a loan does not just end with getting a loan. It has to be spent effectively and paid back early and regularly. The first thing you should understand is that debt has a ripple effect across your financial life, including your mental and emotional life.
Paying off your debt helps to increase your credit score and frees up money to buy the things you enjoy.
Note that you should not be taking a business loan if it will not help your business grow more. Debt will not magically disappear, but what you can do is work to fix your debt.
Here are a few tips to help you get out of debt faster:
1. Make a Loan Repayment Plan
The first step is to create a loan repayment or debt payoff plan. There are a few strategies to help clear debt.
One strategy according to finance expert Dave Ramsey is called the debt snowball. This strategy advises that you start off by paying debts from the smallest balance to the largest balance regardless of the interest rate. Once the smallest loan is paid off, you focus on the account with the next smallest balance.
This tactic has been proven successful by many people because it builds up your motivation to keep paying off your debt you feel a small sense of accomplishment and feel more encouraged to pay off your loans. Each conquered balance gives you more money to help pay off the next one quickly.
Additionally, Ramsey advocates for paying off debt first with all extra income before even saving. This is because most times, earnings on savings are lower than the interest you pay on debt - it therefore only makes sense to pay down on your debt.
Apart from the snowball method, there's another debt payment method called the debt avalanche method. If you have just one debt, make the biggest monthly payment you can handle and do this until you have cleared all your debt. 
Using the debt avalanche approach with multiple loans, you pay off your debts in order from the highest interest rate to the lowest interest rate regardless of the balance until the debt with the highest interest rate is entirely paid off, then the extra repayment funds go toward the next-highest interest-bearing loan. This system continues until all the debts are paid off.
2. Stop Spending
When paying off a loan it is best to reduce unnecessary business expenses. You want the honest truth? You do not have to live on the edge for satisfaction. If you have to stop having business lunches at fancy places and buying expensive things to ensure that you pay off your debt easily, then do that.
You also don't have to live large to impress people if you are only going to be broke on the inside and have debts piling up. You have to cut off unnecessary business expenses.
3. Budget
Creating a budget is an effective way to help you track your spending. Following a budget, helps to ensure that you are not spending the loan on unnecessary expenses. In addition, ensure that you are committed to repaying your debt so that the loan doesn't become a bigger loan and a bad debt.
If you're having trouble with repaying a loan, look for ways to either increase revenue or cut costs. These changes can put your business in a better place financially and allow you to repay your loan stress free.
4. Study your cash inflow and tailor your loan repayment to it
When applying for a business loan, make sure that you fully understand what your obligations are. You should know what your loan term is, your payment due dates, the interest rate, the payoff amounts, and other aspects of your business loan. Make sure to ask all the necessary questions and note all the important information. If you are confused, ask your lender, or loan officer to further explain this information.
Also, understand your cash flow and income flow. This will help you decide or plan the best payment for you. If you make monthly income, you can opt for a monthly repayment and if you make the weekly income you can also opt for a weekly repayment to help you pay off your loan faster.
5. Seek Help
This is very important. If you are having difficulty or challenges paying back a business loan, contact your lender immediately to discuss your options. When you start missing deadlines without providing an explanation, there could be serious repercussions.
In some cases, some loan lenders, offer refinancing options or briefly accept a reduced amount. You will still be required to pay your remaining balance, but you might be able to work out a convenient and effective repayment plan with your lender or financial advisor.
By being transparent with your lender, they will be more likely to trust that you're a responsible borrower. This will help you in the future if you decide that you'd like to apply for additional financing or a bigger loan.
References
https://www.daveramsey.com/blog/how-to-pay-off-debt
https://www.thebalance.com/debt-snowball-vs-debt-stacking-453633
https://www.daveramsey.com/get-started/financial-action-plan?int_cmpgn=get_started_assessment&int_dept=lampo_split_bu&int_lctn=DR.com_Site_Interrupter&int_fmt=button&int_dscpn=gsa_interrupter_tablet_image_0919&campaign_id=
https://www.thesimpledollar.com/credit/manage-debt/11-ways-to-get-out-of-debt-faster/

As a small business owner, you reach a stage where you do not wear all the caps anymore; this is where you make the decision to expand and hire extra manpower, top talents. It is important to be able to attract top employees as well as be able to retain them to help the business remain effective and productive with evident growth.

Top talents are key players, who bring in clients, retain clients, and increase sales. They are committed, effective, productive, competitive, have leadership traits, and experience growth in alignment with the aim, and goal of the organization. Attracting and retaining top talent is vital for any organization, either small or big.

As a startup, it might be a struggle to attract and retain top talents. When an organization loses one of its top talents, the company loses out on the highly effective role of the employee; this could have very costly effects and might take a while to find a good replacement with a high level of productivity.

Google is the world’s number one employer for the sixth year in a row. Laszlo Bock, the former Senior Vice President, people operations of Google, said that the primary reason why employees stay in the company is not money, but for the quality of their team, or the value of work they are doing.

So what are the ways that a company can keep its top talent in the company and satisfied enough to remain effective? Here are four ways how;

Communication
Communication between top talent and an employer is very important and could occur in various forms. However, it does not just end at listening. Communication is complete when an action has been taken based on what was being communicated.

When a top talent’s idea is being implemented as a result of their suggestion, the talent will continue to engage in communicating their ideas, which the employer might benefit from. Even if an idea or suggestion is not implementable, it is required that the employer acknowledges it and explains why it will not be implemented.

When an idea is halfway there or doesn’t fit the objectives of the organization, an employer should be creative in expertly informing the employee that the idea would not be implemented, rather than saying yes and doing nothing about it, or shooting it down instantly, with little or no explanation, with phrases like; “because I said so”, or “because I am the boss”. This leads to an employee keeping their ideas to themselves or seeking out another organization that will listen to them and implement their ideas thereby leading to a huge loss for the organization.

Another important aspect of communication between an employer and the top talent is to make sure that their job description, duties and requirements are well communicated to them at the beginning, as well as on the work clearly, and directly.

Good employees want to please and work efficiently for the organization, but when they do not know what it is they need to do to make that happen, it becomes difficult.

Effective communication also leads to finding out where the employees might be facing difficulties. As an employer, you have to be careful about making assumptions and communicate effectively, to know what is going on, or where employees might be facing difficulties in their line of duty, and work towards solving the problem if the problem persists, it might affect growth, productivity, and development negatively.

Engagement
Top talents appreciate when they are involved in the decision making of the organization, as it affects them too, whether positively or negatively. The goals, values, mission, and accomplishments should be set or improved in relation to the growth and development of the employee.

This helps to increase engagement, when the employees are allowed the opportunity to suggest additions or changes to the vision and mission of the organization, on a regular basis, it increases the ownership over the core values and mission that drive the business.

Employees could also be engaged by promoting from within the organization. Top talents want to know that they would be considered for promotion, or made a partner in the company. This fosters healthy competition among top talents, which ultimately boosts the productivity and growth of the company, by ensuring there is an established, solid internal advancement program. It is not encouraging for top talents when there is continuous recruitment of new management from outside the company.

When top talents are also involved in the decision making of the organization it boosts satisfaction and ultimately employee retention. Little decisions such as what color the lobby should be painted, to big decisions like where the new branch should be located, or what advertising campaign should be implemented for the year, are important in an organization, to boost engagement, and aid retention of the employees.

Also when an employee is learning, they become engaged. Training like leadership training or skills acquisition, in relation to the objectives of the organization, grows the top talent who applies this knowledge in the improvement and development of the organization which in turn aids the growth of the organization in a competitive market.

Alignment
When there is efficient communication between employer and employees, and employee engagement is topnotch, it makes employees feel like one and part of the organization. The objectives, weaknesses, strengths, goals, and mission of the employee, should be identified and aligned with the operational needs of the employee, and the organization.

If you have a top talent, who is good with graphics, to help the employee improve and feel like a part of the organization, a need for graphics could be created like a monthly happy new month banner, put out every month, in that way, the talent’s ability has been identified and permitted to grow for the employees benefit, and that of the company, in this way the company has aligned its objective with that of the top talent.

An employer cannot simply assume what an employee wants or needs, hence the need for communication and engagement within the organization. To ensure that the needs of the top talent are satisfied when aligning.

Compensation
Compensations are various forms of indirect, non-monetary or monetary reward provided to employees of a company or organization, in addition to regular wages, or salary. This could be in the form of perks or benefits. Also when a top talent does something exceptional, it is usually sufficient to provide more than a good job accompanied by a thumbs up to appreciate their work. They can be compensated with a bonus, raise, a spa day, or extra vacation days; this boosts the employee’s morale and satisfaction, ultimately promoting retention.

Studies have shown that employees will prefer to stay longer with a company that offers great employee benefits, compared to companies that do not.9 Employee retention has become a huge challenge due to the fact that productive employees leave for friendlier working conditions, as well as, as a result of staff poaching. Compensation aids the employer in retaining their top talent, which ultimately improves working performances which leads to increased sales and efficiency.

Employees are valued assets when they are efficient, and when they are not, it can affect the company negatively.

While you may not be able to implement all of the above immediately, start small and improve on what you can while assuring top talent that they are valued and their contribution no matter how small is valued.

References

https://www.forbes.com/sites/forbestechcouncil/2017/12/06/six-tips-for-retaining-talented-employees/amp/
http://amp.businessinsider.com/google-laszlo-bock-how-to-retain-employees-2015-4
http://www.selectinternational.com/blog/bid/148239/5-things-successful-companies-do-to-retain-top-talent
https://hbr.org/2010/05/how-to-keep-your-toptalent
https://www.residentialsystems.com/.amp/blogs/4-ways-to-retain-top-talent
https://www.paycor.com/resource-center/10-ways-to-retain-top-talent
https://www.residentialsystems.com/.amp/blogs/4-ways-to-retain-top-talent
http://hrcouncil.ca/hr-toolkit/compensation-employee.cfm
https://www.inc.com/chad-halvorson/5-reasons-you-should-be-investing-in-employee-development.html

Most people try to avoid matters that have to do with debt. However, taking a loan is used by many corporations and individuals as a method of making large purchases that they cannot not afford under normal circumstances. Debt is an amount of money borrowed by one party from another. 

Though there are certain arguments that no debt is good, experts have agreed that there are good debts and bad debts. Determining whether a debt is good or bad, depends on the organization’s financial status, the purpose of the loan and other factors.

Now that we have established that there are good debts and bad debts, what makes debt good or bad; according to experts, good debt is a loan that has the potential to increase your net worth, and it is usually incurred for something that’s likely to appreciate, such as a home or a business.

To make sure, you are acquiring a good debt, have a clear and specific reason for taking on a loan, as well as a realistic plan for paying back the loan. This will allow you to clear the debt as quickly as possible, or in a series of regular and affordable payment.

Good debt allows you to improve your life, while bad debt can create a never-ending borrowing cycle. Bad debt involves borrowing money to purchase depreciating assets. A depreciating asset is one that has a limited effective life and can reasonably be expected to decline in value over the time it is used.

Bad debts are often tied to items that provide instant gratification and offer little or no long-term value or financial return. Bad debt is usually incurred primarily to pay for something that you cannot afford out of your income and savings.4  One might even think of it as being convenience related debt. You want to purchase something, but you’re not willing to save the money, so you turn to credit to make it happen.

Regardless of whether the loan is good or bad, make sure that you are taking a loan for the right reason, and that you manage your debt efficiently so that you can pay back within the tenor and it doesn't get overextended.

References

https://www.investopedia.com/articles/pf/12/good-debt-bad-debt.asp
https://www.investopedia.com/articles/pf/12/good-debt-bad-debt.asp  
https://www.ato.gov.au/Forms/Guide-to-depreciating-assets-2019/?page=6
https://www.thesimpledollar.com/financial-wellness/good-debt-vs-bad-debt/

Simple Tips to Develop Better Money Habits


In school, you learn about debit, credit, and finances but many can admit they were not fully prepared for real-life adult expenses. It took some buying cereal with their own money, and some soap. But if you learn how to spend money and save better, your money can go a lot further. They say experience is the best teacher but with the knowledge experience brings, also comes mistakes and some, at an expensive price.
Here are tips to help prevent money mistakes and develop better money habits.

1. Create a budget
2. Spend what is left after saving
3. Borrow money to make money or do not borrow at all
4. Eat out less and adjust your habits if necessary
5. Note your net income
6. Set your goals
7. Extra source of income
8. Make savings account inaccessible

1. Create a budget
Creating a budget helps you track your spending. When it comes to developing better money habits, one effective way to control your money is to review your financial situation, what gets measured gets managed.
It is important to not only create a budget but firmly stick to it. This goes a long way than just tracking your expenses. Instead, you will have to think critically about how you are spending your money and look for ways to cut corners on your outgoing cash. Hence you have to stick to the list. When you think about improving money habits, following a list is a good idea. So make a list of needs and stick to it. Create a habit of only purchasing items that are on your list and this will help you decrease the likelihood of wasting money on things that you do not really need.

2. Spend what is left after saving
Save what is necessary, not what is left after spending. To do this after preparing your budget, cut out unnecessary expenses and once you have an idea of what you spend in a month, you can set a savings goal. Figuring out how much you spend helps you save better. Keep track of all your expenses, cut unnecessary spending. Savings could be in terms of long term savings or short term savings.

3. Borrow money to make money or do not borrow at all
Money can solve a lot of problems, and sometimes it makes sense to borrow money for things that will improve your life over the long-term. These loans can help cover expenses or urgent cash needs.
The first step is to make sure that borrowing is actually the right choice. There are good debts and bad debts: good debt pays for things that provide long-term value and possibly even gain value over time, and bad debt pays for current consumption. So make the right decision, and make sure that you match your loan to your needs.

4. Eat out less and adjust your habits if necessary
Eating out is easy. But it's expensive. Food sometimes takes up a large chunk of most people's monthly budget and breaking the fast food habit is one of the easiest ways to cut costs. The key is to have a plan in place to avoid eating out. You can plan your meals, eat from home, seek out affordable meal options, set a weekly limit, and you can also cut out impulsive and emotional spending

5. Note your net income
Another tip for better money habits is to note your net income. This helps you create a budget as well as set a saving and spending plan. It also helps you to note if you are making enough or not enough. If you note the amount of money you have coming in, and it is not enough you can plan to increase your means of income or again, cut down on some spending. Noting your net income also helps you take better money decisions like taking a loan or mortgage.

6. Extra source of income
If you have a hobby or talent, you may be able to find a way to supplement your income, by making it lucrative. Having an extra source of income can also be helpful if you ever lose your job, or if you discover that you are not making enough. It also helps you to save more and clear debts that might not be cleared easily depending on only one source of income.

7. Set your goals
Now that you know your net worth and have made decisions to save and cut down on unnecessary expenses, you can make a list of all the financial goals you want to accomplish in the short- and long-term. Short-term goals are goals you want to achieve within the year, and Long-term goals are the goals that may take years to achieve, these include; retirement, or buying a house. It is good to identify your goals and priorities before you start planning a budget and making a savings plan. This will help to set out a well-defined plan.

8. Make savings account inaccessible
It is a bad money habit to tap into savings when something unpredictable comes up or rather if your savings are easily accessible spending your savings on things not included in the savings plan. This is a bad money habit that affects savings and may delay achieving saving goals. What you can do to avoid this is; make sure your savings account does not have a withdrawal card, avoid connecting it to an app that allows easy spending. Use a savings app to save and set a withdrawal date. To also make sure you are committed to your savings you can automate savings too by connecting to an app that withdraws savings automatically, or by setting up an automatic transfer between your checking and savings accounts.

Reference
https://bettermoneyhabits.bankofamerica.com//en/saving-budgeting/ways-to-save-money
https://blog.biznurture.com/?p=59
https://www.biznurture.com/products.php
https://www.thebalance.com/slash-your-food-bill-stop-eating-out-2385715
https://www.khanacademy.org/college-careers-more/personal-finance/pf-saving-and-budgeting/tips-for-tracking-and-saving-money/v/easy-tips-to-save-money-every-day
.https://www.khanacademy.org/college-careers-more/personal-finance/pf-saving-and-budgeting/tips-for-tracking-and-saving-money/a/creating-a-budget

BizNurture is an online platform that provides short term loans for SMEs in Lagos and Port Harcourt. These loans can help cover expenses or urgent cash needs for small businesses, in cases where small businesses might need extra funding or loans to keep the business running, purchase more inventory, hire extra manpower to promote efficiency or expand your physical location.

You might also need equipment for your business; for a business of any size, purchasing equipment can help improve your business, make your product better or help you perform your service, better. 1 When other means of funding have been exhausted, BizNurture[www.biznurture.com] offers a less complicated and fast lending process.

As a business owner have you ever been short on funds, needed extra capital to execute tasks or other issues that might be solved with a loan? These among many other reasons and factors are what BizNurture works towards solving, in such a way that they provide short term business loans to SMEs, without collateral. And guess what you can get your loan in 48 hours

How does BizNurture work to provide funding for SMEs, online, in 48hours, and without collateral? Before that let’s go through types of loan that they offer.

Loans BizNurture Financial Services Offer

LPO (Local Purchase Order) Financing: A financing option for small businesses that need money to meet a single or multiple job offers.[url]2[/url] So you own a store, it is a new year and you need to fill your store with new goods to ensure that you have goods to sell for the new year but you don’t have enough capital to order enough goods, the Local Purchase Order (LPO) financing is a good option for you. If this is you? then begin your application at www.biznurture.com

Invoice Discounting: A Financing option for small businesses to borrow money against amounts due from customers. The total sum of money due for the purchase of a good or service that must be paid by the set due date. So basically, you have provided a good or service but you are yet to get the total sum of money, you can take out a loan here from BizNurture, and payback within 1 month to 8 months.

Short-Term Loan: The short term loan is a financing option for small businesses with regular revenue streams that need money to pay a one-off expense, or take advantage of a great business opportunity such as a sales discount. A short term loan is a valuable option, especially for small businesses, or start-ups that are not yet eligible for a credit line from a bank.

Working Capital Loan: You also have the option to get loans to help finance everyday operations for your small businesses. to ensure that the business is up and running at maximum capacity. These loans are not used to buy long-term assets or investments, instead, they are used to provide the working capital that covers a company’s short-term operational needs.

FemPreneur Loan: Female Entrepreneurs, get in here, this product is designed to encourage women in business with a steady monthly cash flow. So as a female entrepreneur in Small and Medium Enterprises (SMEs) if you are ever in need of a loan you can apply here for one. You can have access to loans from ₦500,000 thousand to ₦3,000,000 million.

Edubiz Loan: School is in session or about to resume, students are yet to start paying fees, and you need to fix a few things here and there; maybe get books, and other school materials and equipment before school officially resumes, then the Edubiz loan is for you. This is a financing option for schools that need funds to execute a short term project or pay a one-off expense. Repayment is done termly in line with when school fees are received.

Loan Requirements

We are here to help you grow your business.

BizNurture helps to provide solutions that help alleviate the funding problem by providing funds at reasonable prices to businesses that have difficulties accessing traditional finances.

So as mentioned earlier, you do not need collateral to access any of the loans mentioned for funding your business in Lagos and Port Harcourt. No collateral needed how cool is that?

However, there are still a few requirements to ensure that you get the loan:

To make your application process faster, here is a list of basic documents required. More may be required depending on the type of loan requested.

Must be 2 years or more in business
Request letter on letterhead
CAC documents
6 months bank statement
Copy of LPO to be financed / invoice to be discounted
Copy of valid ID card
Guarantors.
If a Business Name, two 3rd parties must guarantee the business owner
If a Limited Liability Company, the MD must guarantee the loan, as well as a 3rd party.
list of loan requirements for BizNurture Loans

How it works

At BiZNurture you can access funds 48 hours after you have applied and submitted necessary documents, once your documents have been accessed and approved, you get allocated the requested amount to fund your business in Lagos and Port Harcourt.

So how do you apply?

Visit www.biznurture.com and click the “Apply Now” button. If you are a first-time borrower, you will be able to apply for a loan only after registration. Click the “Register” button to create an account with BizNurture.

Clients who are already registered with BizNuture can apply for loans once logged on to the web application. If you already have an account, log in. The minimum loan amount is ₦500,000 thousand and the maximum amount is ₦5,000,000 million. Usually, within 48 hours after all relevant loan documents have been executed and returned to BizNurture.

The minimum and maximum loan terms are 1 month and 8 months respectively



If you need a loan to help your business grow, BizNurture Financial services has loan options that fit your business, depending on what you need a loan to help you make your business dream a reality. So click the link here to begin your application for a loan now.

What You Need To Know About The New CBN Policy.

The Nigerian economy has too much cash in circulation as cash is mostly used for transactions for goods and services, especially for buying and selling. In other developing countries in the world, this is not the case, as there are other payment options like; Debit and Credit Cards, Bank Transfers, Bank Direct Debits, POS Machines, and even Mobile Phone Money. We have these options in Nigeria too, thus, the CBN’s aim to move transactions to these options instead of circulating cash.
However, on the 18th of September, as an effort to promote the cashless policy in Nigeria, The Central Bank of Nigeria (CBN) introduced a new policy on cash-based transactions which stipulates a cash handling charge on daily cash withdrawals that exceed ₦500,000 for Individuals and ₦3,000,000 for Corporate bodies.
They have stated the reasons as to why the new cash policy was introduced. A number of key reasons include:
To drive the development and modernization of our payment system in line with Nigeria’s vision 2020 goal of being amongst the top 20 economies by the year 2020. An efficient and modern payment system is positively correlated with economic development and is a key enabler for economic growth.
To reduce the cost of banking services (including cost of credit) and drive financial inclusion by providing more efficient transaction options and greater reach.
To improve the effectiveness of monetary policy in managing inflation and driving economic growth.
In addition, the cash policy aims to curb some of the negative consequences associated with the high usage of physical cash in the economy, including:
High cost of cash: There is a high cost of cash along the value chain - from the CBN & banks, corporations, and traders; everyone bears the high costs associated with volume cash handling.
High risk of using cash: Cash encourages robberies and other cash-related crimes. It also can lead to financial loss in the case of fire and flooding incidents.
High subsidy: CBN analysis showed that only 10% of daily banking transactions are above ₦150,000, but the 10% account for the majority of the high-value transactions. This suggests that the entire banking population subsidizes the costs that the tiny minority 10% incur in terms of high cash usage.
Informal Economy: High cash usage results in a lot of money outside the formal economy, thus limiting the effectiveness of monetary policy in managing inflation and encouraging economic growth.
Inefficiency & Corruption: High cash usage enables corruption, leakages, and money laundering, amongst other cash-related fraudulent activities.
The charges took effect from Wednesday, September 18, 2019, and will apply in Lagos, Ogun, Kano, Abia, Anambra, and Rivers States as well as the FCT for now. The Central Bank of Nigeria (CBN) also announced that the nationwide implementation of the cashless policy will begin by March 31, 2020.
From Wednesday in the first few states, banks started applying the 3% withdrawal fee, and 2% deposit fee, for payment and withdrawals above ₦500,000. Therefore, if you withdraw ₦500,000 cash, the bank deducts ₦15,000 leaving you with a balance of ₦485,000 and if you deposit ₦500,000 the bank deducts ₦10,000 and credit your account with a balance of ₦490,000. Also, note that the charges are daily not per transaction. You can deposit ₦500,000 daily. When you exceed it, the amount in excess will be charged for that day.
For Instance, you have ₦2,000,000 to deposit; you can deposit ₦500,000 without the extra charge of 2% but if you deposit the ₦2,000,000, you'll be charged 2% of the amount in excess for the day. Another scenario would be if you deposit ₦1,000,000 in the morning and in the evening of the same day, you deposit ₦1,000,000, your transactions for the day will be summed up and you will be charged for the amount in excess for that day.
However, if you receive payments or make transfers with a POS or through mobile transfer, you will not be charged. The policy applies to over the counter, third party cheques, and ATM transactions, this is to discourage carrying huge amounts of money around.
So how does this affect your Loans with BizNurture? Well, it does not. The cashless policy does not affect your loans with BizNurture.
BizNurture does not give cash or deposit cash in your account after your loan has been approved. BizNurture is a Fin-Tech Company, which implies that loans are disbursed electronically after approval. Hence, no deduction of lodgment fee. You, therefore, do not need to worry about the 3%.
As a business owner or an individual, if you handle huge sum of money daily, you can set up a POS to receive payments. Another option is to transfer and receive payments through mobile apps and other electronic means of payment that do not involve cash.