TNLP

The -19 Pandemic has brought about wide spread disruption of business activities. Thus, it is necessary to take the following steps, to keep your business afloat:

i. Adapt your business plan to the changing circumstances. Consider the possible business opportunities arising from the ;

ii. Take suitable measures to safeguard ;

iii. Review all material and identify any applicable contractual terms like force majeure clauses. Also, seek to reach agreements on possible contractual variations or waivers, to prevent default of existing contracts;

iv. Proactively communicate with with a view to negotiating short-term breathing space;

v. Take benefit of extended periods by the authorities, for filing returns;

vi. Look at the brighter side and have a positive mindset. Battles are first won or lost in your ;

vii. For matters, consider options such as paid or unpaid leave; and,

viii. Stay informed and take benefit of and other funding palliatives.

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5 QUESTIONS TO ASK YOURSELF BEFORE CHOOSING TO FINANCE YOUR BUSINESS WITH DEBT

With the closure of the land in Nigeria, Mike (not real name) who has never reared a chicken successfully, started a poultry business. Using his father’s title documents, he secured a . He made great sales but his bank account was not better for it.

2 months down the line, his lender notified him that the principal and for the month had become due, as contained in the loan Agreement. He thought he had a moratorium of 4 months.

That was the beginning of his series of sleepless nights and resultant health defects.

Irrespective of the nature of your business, please ask yourself the following questions before signing a Loan Agreement:

i. Am I using the loan to acquire fixed assets or for operating cost? With fixed assets, loan repayment could be difficult.

ii. What kind of customers/clients do I have or am I likely to have? Customers that will not pay for your goods/services promptly will make debt servicing difficult.

iii. What is the stage of my business. Have I tested the waters?

iv. How well do I know the business?

v. Are the terms of the Loan Agreement good for my type of business?