Capital Finance, How to Go When You Need Funding

At one point or another, many people need funds to start a business or project or even to buy assets. However, most of the time they don’t have the capital needed to do it. Resources for resources can be very stressful and busy. You cannot give up even though there are many sources of capital available if you do your research. If you want to achieve financial freedom, you may have to take risks but they must be taken into account. You should always look at your finances before you go out to look for alternative funding methods.

However, if you don’t have a lot of money saved, you might have to borrow. Many people approach banks and other lending institutions when they need capital financing. You must have a solid business plan, accurate cash flow projections, guarantees and besides they will check your credit to see if you are a risky business. You can choose to apply for a state grant.

Capital Finance, How to Go When You Need Funding

What you need to know is that they are very competitive and you have to really obey the rules and regulations of how the money should be spent. The chances of you getting one of these are limited so you are advised to keep other options open. Venture capitalists have been recognized as a good source of financial capital. There are special qualifications that they are looking for when they want to invest in your business.

You need to have a good management team and a fast growth plan so that venture capitalists are interested. It’s not too difficult to get financing for your personal business or project because there are many choices available. You must choose the option that best suits you based on payment, obligations and flexibility settings.…

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Customer Service + Longevity

Trying to get new customers is a full-time job. Potentially, prospective customers are everywhere, but getting their interest and attention can be extremely time consuming. Sometimes there isn’t much time left over to focus on other customer service and sales related aspects of managing your business. One strategy many businesses use is to try to obtain repeat business from former or existing customers. It’s far easier to get a sale from someone who has already purchased from you, especially if they had a great experience

Customer Service + Longevity

When Was The Last Time You Checked On An Old Customer?

Existing customers can easily get lost (and forgotten) in the shuffle when a business is trying to grow. Unfortunately, when we lose an existing customer for a new one, we haven’t gained anything. We have however, lost time, money, and effort by letting one get away. With every customer that goes somewhere else, their investment (in you) goes with them. They will also be the hardest customer to get back. In Entrepreneur Magazine, Gary Vaynerchuk’s blog reminds us of the difference between farming and hunting when it comes to repeat customers,

“Farming is focused on nurturing your customer through a caring relationship. Hunting is trying to close another deal…”

Retention

In a challenging economic environment sometimes all you can hope for is retention, when it comes to market share. Customers will only be loyal to you if you are loyal — and attentive, to them. A loyal customer base is what creates the foundation for your livelihood. Without customer retention, you have nothing. The ability or inability to retain customers is the difference between life and death to a company. Remember, businesses need to participate in the lives of those whom they wish to participate in the lives of their business.

Trust

It takes time to prove consistency when you are new. Lasting is the true test of whether you are doing it right or not. Having been in business for forty years, we understand that customer retention comes from quality customer service and always being the consistent provider of what a customer will need. Regardless of what a business sells or does, trust is key. This is the kind of example of company customer service you want to aim for.

Easy Maintenance

Positive engagement is about all it takes to maintain existing customer bases. What that engagement is, is up to you. The marketing choices you make should be based on the industry you are in and type of people you have to deal with. What easy things can you implement that not only remind your existing customer that you want to continue doing business with them, but also provide them with something of value – we like to call them easy productivity wins. How can you deliver it to them?

Each customer is an essential piece of your businesses financial foundation. The stronger you build your foundation, the greater chance you have at sustained success. Every business begins with the intention …

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Discover Unknown Benefits of Having a Travel Insurance on Canada Trip

Canada is a land of scenic beauty. However, a badly planned trip to Canada can give one a sour time. In the itinerary checklist, one should never forget to get travel insurance. Travel insurance for Canada can save you from unforeseen expenses. A wide range of cover can be availed in travel insurance such as cover for damage from an accident, medical emergencies, theft of personal belongings or cancellation of flights. While evaluating travel insurance plans, make sure to look for different categories of policies based on factors like category of the person traveling – senior citizen, businessmen, etc. A frequent traveller, for example, can choose an annual plan. Tailoring an insurance policy so that it covers a group is also available. Some of the major benefits that you can avail on buying travel insurance Canada are: 

Discover Unknown Benefits of Having a Travel Insurance on Canada Trip

Get a Cost-Efficient Comprehensive Cover 

The mundane task of buying travel insurance can actually sometimes help you avoid grave financial losses. Begin by listing down the covers that you need. Then, if you are traveling in a group, list down the categories of people. In case you are a frequent flyer, list down the number of trips. Buying a policy that suits your needs means avoiding buying an expensive policy that does not meet your demands. It also assists in avoiding cheap policies that do not provide adequate cover.

Travel Policy Covers Medical Emergencies

Traveling overseas can mean falling prey to unfamiliar illness. For anyone who is travelling to another country, this is one of the most undesirable situations. Any such health emergency can lead to sky-rocketing medical costs. Buy a travel insurance policy that provides comprehensive coverage such as cover for hospital expenses, expenses pertaining to medical emergencies, medicinal bills, expenses for existing illness, et al. Have a relaxed time in Canada after having you and your family’s health expenses covered by a comprehensive insurance plan. Make sure that you furnish all the information regarding your medical history in the proposal form so that issues do not arise while making a claim.

Cover for Cancellation of the Trip

Another major challenge while traveling comes in the form of flight cancellation. The benefit of buying a travel insurance policy is that it provides a cover for the cancellation of the trip for the following reasons:

  • Cancellation of flight due to natural or man-made disasters.
  • Cancellation of flight due to issues with flight.
  • Emergency medical situation of a family person not traveling along, et al.

Get a Cover for Theft or Loss of your Personal Belongings

Travel insurance policies also provide cover for baggage carrying valuables or important documents,  that can get lost or stolen while on a trip. A comprehensive travel insurance policy can offer financial reimbursements in such cases.

Buy a Policy with Minimum Exclusion to your Needs

At times, travel insurance policies have certain limits on the range of cover and the amount of cover. It is recommended to compare any possible exclusions in the policy with your needs to get …

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Alternatives and Tips for Working Capital Financing by Banks

Canadian business owners and financial managers who seek finance by banks or other sources generally experience growth in sales and profits. That’s the good news, which of course is offset by the fact that this type of success requires additional working capital.

Liquidity has become the name of the game and ‘money is king’ even today never seems like an old-fashioned cliche? . A recent study by the Conference Board of Canada shows that the main concern of business owners is working capital cash flow. (Also referred to as ‘regulatory and competition issues’)

Alternatives and Tips for Working Capital Financing by Banks

So you have assets … but can those assets generate cash flow by banks or other alternative sources.

For working capital needs, this is all about ‘current assets’ which includes receivables and inventory. When you invest in these two assets to generate sales, your working capital needs increase, and your ability to manage and hand over those assets plays a key role in the provision of working capital by banks, and non-bank institutions.

You don’t need to be afraid to get into traditional or alternative working capital solutions if you have managed your current assets correctly – you only make money for liquidity, and that is rarely a bad thing.

So, Canadian chartered banks are the solution for your needs. Maybe, maybe, maybe our answer, which means that if your company is able to meet the bank’s criteria for a revolving credit line, your needs can usually be met. What is even more concerning for our clients is their ability to not be able to produce enough financing for a sister from receivables, aka inventory.

That then led us into an alternative to bank financing, which is a fast-growing area of asset-based financing, specifically asset-based credit lines. This facility is more expensive, but gives you a total margin of the market value of your receivables, inventory, and, guess what, we will throw equipment and real estate if you want to provide a temporary margin. And remember, your balance sheet doesn’t take on debt when you enter a bank or alternative asset-based credit line, you only get money from your finances for cash flow.

The reality is that alternative financing methods are increasingly popular – yes they are more expensive, but if your company generates sufficient margins and returns on capital, your ability to utilize almost unlimited working capital can prove to be a very positive experience.

The reality of working capital financing by banks or alternative methods is always the same – you need to determine the turnover of your assets, there will always be times when you need a bulge in your inventory and A / R to fund your growth.

Liquidity, that’s the problem. Talk to a trusted, experienced, and credible Canadian business financing advisor to make sure your traditional and alternative business financing options are available first, clear, and second!…

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Alternative Sources of Finance for Uganda: Mara Launch Fund

One of the alternative sources of finance for Uganda is the Mara Launch fund. For many Ugandans, particularly those starting out in business with only a concept, this is a good place to start.

Basic information

Target: Start ups and early stage businesses

Sector focus: All

Amounts provided: UGX 5,000,000- UGX 10,000,000

Funding type: Venture capital

Means, rather than providing a loan, the fund takes a % of shares in the company

Key criteria

Model can be repeated across Africa;

Profitable business within 3-5 years (exit period for fund);

Strong management

Further information

search online for “Mara Launch Fund”

Tel: +256(0)414 233 700/800

Who is behind the fund?

Ashish J. Thakkar; CEO,Mara Group;

Alex Rezida, Partner at Nangwala, Rezida & Co. advocates; and

Peter Mukiza, Managing Partner in Uganda for Quantum capital.

What is the process like?

1. Submit business  plan should include information consistent with the key criteria for the fund.

2. Introductory meeting. If the fund likes the plan, the investor will meet the fund team.

3. Due  means the fund “verifies” the information presented in the plan.

4. Term sheet. Document spelling out the basic terms and conditions.

My view/tips for success in accessing the funds for your business

1. Team:Venture capital funds like Mara know that a great team will develop and implement the idea successfully. If you have no internal capacity, have a professional join you so that your plan includes a strong team.

2. Executive summary. Investors are busy people and so your summary, usually one page, should have one aim in mind: “Make them eager to turn the pages”. In order to do this, ensure that your executive summary captures key aspects of the document including the team, the amount required, the process, the activities to date and other information that provides a “snapshot” of your concept.

3. Repeatable model. The fund is looking for good business ideas that will transform Africa. Can the business model be repeatable not only in Uganda but perhaps Kenya, Rwanda, Tanzania?

4. Understand the fund and persons behind it. A core part of a successful business relationship is whether the two parties “connect”. Investors are people and they usually invest if they like the person behind it.

In July, I met Nigel Ball, director of an affiliated entity. He is a very likeable, straight talking professional. I can therefore expect that the rest of the team will be of this nature.

Otherwise, best of luck.

Disclaimer

Inachee is not an agent or connected to this entity, it is an independent thought leadership and advisory firm. The information provided is based on our research and experience. Whilst we have taken steps to ensure the accuracy of the information presented here, there can be no guarantee that it will remain accurate.…

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