emmanuelewumi:


Interest rate from the banks are between 20% to 25%, big businesses like MTN, Dangote, etc can get at lower rates


If a trader gets a 91 day overdraft facility of N1 million at 24% per annum. That means the trader will pay an interest of 60k on the N1 million after 3 months when the loan matures

A trader who can't make up to 150k profif on a loan of N1 million in 3 months have no business being in that business.

Even if the business is just starting up and less than three years.

emmanuelewumi:


Interest rate from the banks are between 20% to 25%, big businesses like MTN, Dangote, etc can get at lower rates


If a trader gets a 91 day overdraft facility of N1 million at 24% per annum. That means the trader will pay an interest of 60k on the N1 million after 3 months when the loan matures

A trader who can't make up to 150k profif on a loan of N1 million in 3 months have no business being in that business.

oga i obeserved that most Nigeria n companies are placing unsecured bonds lately fmc , NB, dangote (100bn) hope this not a second ploy to scam investors like they all rushed to sell share(ipo) in 2007 (the biggest 419 in NIgeria )...now the hav forced cbn/dmo to reduced rate of tb and bond auction and now opening bonds at 12.5 ...i know their targets is 10 trillion pension fund ....what your take

emmanuelewumi:



Unfortunately most traders and businessmen co-mingle both business and personal accounts. They pay girl friends and side chicks salaries from the business accounts.

Pay side chicks salaries from business account.....

This is a business that is bound to die in the next available date.

Its always good to live within your means and grow your business.

schoolboi:


Even if the business is just starting up and less than three years.

You are expected to use your savings to start a business. You can use leverage to expand the business


But it is necessary for all revenue to go through the bank or you save and later withdraw from the bank. With this you developing your turnover and transaction history, which will be necessary when you want to grow your business

Theconglomerate:
Oga I say I dey owe bank already as we dey talk.Them no cancel credit repayment.
So how do I borrow from bank again weh I dey owe them?
Na my girlfriend dey pay off the monthly remittance sef as me and you dey talk right now because she's an employee for a stable firm and her salary is steady.
However the loan I took was used to expand my business in terms of acquiring new kind of inventory and opening other routes.
How do I pay off when we don't sell anymore?
I will still reiterate,all traders of capital base of 100million and below have no savings.
Are you trying to say someone that built something from nothing to a 100m naira isn't smart because he doesn't access credit or haven't got emergency savings fund?
You don trade before so?

I see your line of argument. However, there is need for us to learn/add new ways of doing things from what we already know or feel all traders do. Most people will not what to give you their secret except on a thread like this. A lot of business men with that mindset does not withstand shock most times because all they look forward to is expansion without thinking of eventualities.

I know some businessmen around here that would rather involve friends when going for a bigger Investment not because they can't shoulder it alone or they wouldn't have want to make all the profit alone but because they want to share the risk/shock and still live normal incase of eventualities. Some will rather involve their banks instead.

Risk should be spread. If market catch fire and all a businessman has is in that market then there is trouble.

emmanuelewumi:



Unfortunately most traders and businessmen co-mingle both business and personal accounts. They pay girl friends and side chicks salaries from the business accounts.

Oga,trade and logistics na 2 different things.
Trucking when you buy truck,especially new ones,you hardly need any capital anymore unlike trade.
Also,traders are very principled and prudent with money,except the umu anumanu that just came to play and fùck woman.
To build a sustainable trading business with BANKABLE and CREDIT WORTHY cashflow,you have to have as much variety as possible and in good quantity too.
So you can have an edge on purchase and selling prices.
So in essence,you need as much INTEREST FREE CAPITAL as possible.
So you begin to REINVEST every profit you make to be able to have all these inventory at no interest.
So tell me,how does such a person have SAVINGS?
Until you reach satiety level of that business,there is no spare money you will ever have if you want to succeed.
And enough of all the Credit talks,no be all businesses fit cope with credit,some aren't creditable cos of low profits.
I reiterate again,ALL SERIOUS TRADERS with 100m naira capital and below have no savings!
Their savings na their business or maybe one or 2 properties built along the line of getting to 100mn nair capital base.

freeman67:


I see your line of argument. However, there is need for us to learn/add new ways of doing things from what we already know or feel all traders do. Most people will not what to give you their secret except on a thread like this. A lot of business men with that mindset does not withstand shock most times because all they look forward to is expansion without thinking of eventualities.

I know some businessmen around here that would rather involve friends when going for a bigger Investment not because they can't shoulder it alone or they wouldn't have want to make all the profit alone but because they want to share the risk/shock and still live normal incase of eventualities. Some will rather involve their banks instead.

Risk should be spread. If market catch fire and all a businessman has is in that market then there is trouble.

Now tell me,how will such a person with this mindset find treasure when he potentially has created a sharing formula for a treasure he is yet to find and possible competition?
All in the name of avoiding risk

emmanuelewumi:



I hope say your madam is not on Nairaland.

am offically and religiously allowed ..a side chic can also become permant with very Good behaviour....it impossible for me to be perptually attracted to 1 woman for my whole life ...abi African man ,i do sabi lie ....na limited wealth dey humble me

emmanuelewumi:


You are expected to use your savings to start a business. You can use leverage to expand the business


But it is necessary for all revenue to go through the bank or you save and later withdraw from the bank. With this you developing your turnover and transaction history, which will be necessary when you want to grow your business

Interesting. Thank you for this.

Theconglomerate:
Oga,trade and logistics na 2 different things.
Trucking when you buy truck,especially new ones,you hardly need any capital anymore unlike trade.
Also,traders are very principled and prudent with money,except the umu anumanu that just came to play and fùck woman.
To build a sustainable trading business with BANKABLE and CREDIT WORTHY cashflow,you have to have as much variety as possible and in good quantity too.
So you can have an edge on purchase and selling prices.
So in essence,you need as much INTEREST FREE CAPITAL as possible.
So you begin to REINVEST every profit you make to be able to have all these inventory at no interest.
So tell me,how does such a person have SAVINGS?
Until you reach satiety level of that business,there is no spare money you will ever have if you want to succeed.
And enough of all the Credit talks,no be all businesses fit cope with credit,some aren't creditable cos of low profits.
I reiterate again,ALL SERIOUS TRADERS with 100m naira capital and below have no savings!
Their savings na their business or maybe one or 2 properties built along the line of getting to 100mn nair capital base.

Oga, I never quoted you naaw. I only replied abiboilandgas


A single government policy can bring a N100 million trader who does not have back up plans to ground zero within a week or less

My mum had a tenant who has not recovered from the ban on frozen foods which Obasanjo introduced over 15 years ago. The trader used all his savings, got loan from friends and others he lost over N30 million out of this amount 70% was his own capital. He never wanted his wife to work, but for the father in law, who insisted that he educated his daughter so that she should not be a liability.

I don't know much about this man again, but about 10 years ago when he left my mum's house due to financial challenges, the man was yet to recover.

It was the wife who was teaching with Lagos State government that became the breadwinner, when things got bad. They later left to moved to the barely completed house which the wife was building through cooperative society and thrift savings at Ikorodu. I learnt the man refused to move with the family to Ikorodu.


Trading is one occupation in Nigeria that government pronouncement can easily kill, those who are not cash rich and prepared for any unexpected eventualities will be shouting of marginalisation.


There are traders and there are traders. There are forward thinking traders who are diversified. Cosmos Maduka started as a trader, he is forward thinking and moved with the right crowd and professional advisers. He is now diversified into the stock market, bonds, manufacturing and different investments

schoolboi:


Interesting. Thank you for this.

If you don't do this you will not have any cash back and will always need every revenue to buy additional stocks

ahiboilandgas:
am offically and religiously allowed ..a side chic can also become permant with very Good behaviour....it impossible for me to be perptually attracted to 1 woman for my whole life ...abi African man ,i do sabi lie ....na limited wealth dey humble me

If limited wealth dey humble you, that mean say some of us no suppose marry be that o.

ahiboilandgas:
oga i obeserved that most Nigeria n companies are placing unsecured bonds lately fmc , NB, dangote (100bn) hope this not a second ploy to scam investors like they all rushed to sell share(ipo) in 2007 (the biggest 419 in NIgeria )...now the hav forced cbn/dmo to reduced rate of tb and bond auction and now opening bonds at 12.5 ...i know their targets is 10 trillion pension fund ....what your take

They are Commercial papers, they pay between 6% to 7%. They are from 90 days to 270 days


I think the CFOs of those businesses are using the commercial papers to liquidate their existing loans which are currently between 15% and 18%.


So that they can directly get cheaper funds from the investing public for the running of the businesses. There is so much liquidity in the system

emmanuelewumi:



Oga, I never quoted you.


A single government policy can bring a N100 million trader who does not have back up plans to ground zero within a week or less

My mum had a tenant who has not recovered from the ban on frozen foods which Obasanjo introduced over 15 years ago. The trader used all his savings, got loan from friends and others he lost over N30 million out of this amount 70% was his own capital. He never wanted his wife to work, but for the father in law, who insisted that he educated his daughter so that she should not be a liability.

I don't know much about this man again, but about 10 years ago when he left my mum's house due to financial challenges, the man was yet to recover.

It was the wife who was teaching with Lagos State government that became the breadwinner, when things got bad. They later left to moved to the barely completed house which the wife was building through cooperative society and thrift savings at Ikorodu. I learnt the man refused to move with the family to Ikorodu.


Trading is one occupation in Nigeria that government pronouncement can easily kill, those who are not cash rich and prepared for any unexpected eventualities will be shouting of marginalisation.

Very true.

I have a friend that has a pharmacy store

Unfortunately, thieves came and packed all the drugs in his store....

Till today, my friend never recovered.

No savings.... His always "growing" the business.

May God help us all.

Amen.

ahiboilandgas:
am offically and religiously allowed ..a side chic can also become permant with very Good behaviour....it impossible for me to be perptually attracted to 1 woman for my whole life ...abi African man ,i do sabi lie ....na limited wealth dey humble me

Na wa o

emmanuelewumi:



Oga, I never quoted you.


A single government policy can bring a N100 million trader who does not have back up plans to ground zero within a week or less

My mum had a tenant who has not recovered from the ban on frozen foods which Obasanjo introduced over 15 years ago. The trader used all his savings, got loan from friends and others he lost over N30 million out of this amount 70% was his own capital. He never wanted his wife to work, but for the father in law, who insisted that he educated his daughter so that she should not be a liability.

I don't know much about this man again, but about 10 years ago when he left my mum's house due to financial challenges, the man was yet to recover.

It was the wife who was teaching with Lagos State government that became the breadwinner, when things got bad. They later left to moved to the barely completed house which the wife was building through cooperative society and thrift savings at Ikorodu. I learnt the man refused to move with the family to Ikorodu.


Trading is one occupation in Nigeria that government pronouncement can easily kill, those who are not cash rich and prepared for any unexpected eventualities will be shouting of marginalisation.

Government policies don't only affect traders,even manufacturers.
You can go and read up on plastic industries in Central Africa and their fate after governments of those countries abruptly banned the production of synthetic plastics.
Billions of naira in machinery,stock and logistic equipments all useless.
Trust me no one survives government policy so don't limit it to traders.

emmanuelewumi:



They are Commercial papers, they pay between 6% to 7%. They are from 90 days to 270 days


I think the CFOs of those businesses are using the commercial papers to liquidate their existing loans which are currently between 15% and 18%.


So that they can directly get cheaper funds from the investing public for the running of the businesses. There is so much liquidity in the system

Most companies are enjoying this low NTB rates, by issuing ridiculous rates for their commercial papers and bonds.

Fixed money investors are having a hard time.

I hope rates will go back to good goddie days.

Theconglomerate:
Government policies don't only affect traders,even manufacturers.
You can go and read up on plastic industries in Central Africa and their fate after governments of those countries abruptly banned the production of synthetic plastics.
Billions of naira in machinery,stock and logistic equipments all useless.
Trust me no one survives government policy so don't limit it to traders.

It affects everybody the citizens, manufacturers and Businesses, the preparedness of each of them by being prudent, cautiously optimistic, diversified and liquid will determine their ability to absorb the shocks due to government policies and also create more wealth through their ability to harness opportunities from the disruptions caused by such policies


Boys Scout motto says "be prepared"

ukay2:


Very true.

I have a friend that has a pharmacy store

Unfortunately, thieves came and packed all the drugs in his store....

Till today, my friend never recovered.

No savings.... His always "growing" the business.

May God help us all.

Amen.

Your friend might soon recover.
If he was trustworthy and have good sales records,trust me suppliers will pump the hell out of him with stock on credit.
If he don't recover,he was never good at it.
E get time weh all my 5 basket tomato too be rotten and my capital finish,I stay idle for almost 1 year plus and a new supplier start give me 7 basket of tomatoes on credit.
Very soon i will have my 5 basket of tomatoes back and life will be good again
Look,people with money are always looking for people with the right skill set to distribute.
Have that skill set and they will cover your risk unknowingly and even unwillingly.

ukay2:


Most companies are enjoying this low NTB rates, by issuing ridiculous rates for their commercial papers and bonds.

Fixed money investors are having a hard time.

I hope rates will go back to good goddie days.

The economy is in cycles, same with investments. At the right time we shall be back to the good old days

ukay2:


Very true.

I have a friend that has a pharmacy store

Unfortunately, thieves came and packed all the drugs in his store....

Till today, my friend never recovered.

No savings.... His always "growing" the business.

May God help us all.

Amen.

Is he a Pharmacist? Is that his main source of income or side hustle?

emmanuelewumi:




It affects everybody the citizens, manufacturers and Businesses, the preparedness of each of them by being prudent, cautiously optimistic, diversified and liquid will determine their ability to absorb the shocks due to government policies and also create more wealth through the disruptions caused by such policy


Boys Scout motto says "be prepared"

Yeah,be prepared enough to lose 5 billion at once in investment.
I'll take note of that.
I'll like you to give me some examples of people that survived government policy due to their over preparedness and investment in capital funds like you call it.
I guess Ibeto wasn't diversified enough.
Ordinary Tesla,Shell dey want piss their pants upon say Tesla is a gradual process which give them enough time to make exit strategies.
Not to talk of government policy weh na instantly.
You might be on your way to work on le fine morning and you see bulldozers at your gate instead of loading trucks.
Na that gate you go from die.
"Be prepared"

Theconglomerate:
Yeah,be prepared enough to lose 5 billion at once in investment.
I'll take note of that.
I'll like you to give me some examples of people that survived government policy due to their over preparedness and investment in capital funds like you call it.
I guess Ibeto wasn't diversified enough.
Ordinary Tesla,Shell dey want piss their pants upon say Tesla is a gradual process which give them enough time to make exit strategies.
Not to talk of government policy weh na instantly.
You might be on your way to work on le fine morning and you see bulldozers at your gate instead of loading trucks.
Na that gate you go from die.
"Be prepared"

What happened to ibeto? Did Ibeto invest 80% or 100% of his resources on the business that lost money. It is a gambler that will focus 70% and above of his resources on a venture, that was what happened to that trader who was my mum's tenant

IamR:

If limited wealth dey humble you, that mean say some of us no suppose marry be that o.

u no understand ...if i blow like well well like owning an oil vessel , depot and 40 stations 50 trucķs and 10m dollars working capital ...then i fit add another wife ...first wife na necessity, second na fantasy is shouldnt come as a burden

emmanuelewumi:



Is he a Pharmacist? Is that his main source of income or side hustle?

he was suppose to pay insurance premuim against burglary

emmanuelewumi:



What happened to ibeto? Did Ibeto invest 80% or 100% of his resources on the business that lost money. It is a gambler that will focus 70% and above of his resources on a venture, that was what happened to that trader who was my mum's tenant

Oh yeah?
I never knew Ibeto was still at the top of his game.
I learnt that from you today.

Emmaesty:
Na wa o

sorry please dont be offended...but it a reality for most males excluding gays ....

@Emma and Conglomerate, una don make una points and it is well understood. Each person's experience and perspective is different and forums like this help us to see things we probably did not understand or underestimated.

Emmaesty:
Na wa o

No mind am

ahiboilandgas:
am offically and religiously allowed ..a side chic can also become permant with very Good behaviour....it impossible for me to be perptually attracted to 1 woman for my whole life ...abi African man ,i do sabi lie ....na limited wealth dey humble me

But it is possible for human beings to be perpetually attracted to just oxygen for survival.

They could have tried carbon dioxide, nitrogen for a change

emmanuelewumi:


But it is possible for human beings to be perpetually attracted to just oxygen for survival.

They could have tried carbon dioxide, nitrogen for a change

carbon is not an alternative to oxygen ....co2 is even poisonous, ...so i dont get u points....

ahiboilandgas:
carbon is not an alternative to oxygen ....co2 is even poisonous, ...so i dont get u points....

Noted