Cash is the lifeblood of any business, especially a small business. A small business is “small” with limited capitalization and fewer options to raise cash to finance operations. It thus follows that cash management to record and control cash coming in and out of the business is of paramount importance. Everything about the small business must be structured to maximize cash operations, including retaining cash if possible, while ensuring that cash due to the business is collected as soon as possible.

The first consideration given to cash management is how the business is financed. If a small business is financed the wrong way, it will bleed cash. Too often, the only finance available to small businesses is bank loans, which is unfortunate. A bank loan taken too early by a small business will burden the business with interest costs, which will slow down growth.

Source: Nairametrics. Visit site for full article.

The Central Bank of Nigeria (CBN) has doused fears that its aggressive drive to increase the banking sector’s lending to the private sector will result in a gradual accumulation of non-performing loans (NPLs) in the sector.

The Director, Corporate Communications, CBN, Mr. Isaac Okoroafor, told THISDAY yesterday that with the lending clause introduced recently by the Bankers’ Committee, it would be difficult for habitual loan defaulters to operate in the sector.

With the clause, a lender would be able to recover its loan from the assets of a defaulter domiciled in another bank.

The central bank had last week raised the minimum loan-to-deposit-ratio (LDR) to 65 percent with a December 31, 2019 deadline, up from the 60 percent it had stipulated at the end of September.

Source: Thisday Live. Visit site for full article.

A personal loan is an unsecured loan offered by banks and non-banking financial companies (NBFCs). These are unsecured because a borrower is not required to pledge any asset—property, jewelry or car—to get the loan. For this reason, personal loans come with a higher interest rate compared with secured loans, such as a home or car loan.

A personal loan comes in handy in case of a financial emergency as you can borrow the required amount in 12-48 hours from an NBFC by simply submitting income-related and personal information documents. Banks can take up to seven days to process the loan request. What more? Personal loans come with no strings attached as the lender does not monitor its use.

While personal loans give easy access to credit, they can also be a recipe for financial disaster, if not managed prudently. Here are the most common mistakes you should avoid when applying for a personal loan.

Source: Entrepreneur. Visit site for full article.