Business Archives - Page 5 of 9

Are you thinking of starting a business?

Every year, many people dream of quitting their full-time jobs and starting their own successful enterprises. Often, these people have big visions for their businesses, and they hope that they’re able to channel their dreams into something profitable and impactful.

But sometimes, these people worry about how long it will take them to get their new company up and running. After all, quitting your full-time job is a risk, and you don’t want to go too long without making a paycheck.

So, how long does it take to start a business?

We love supporting people who are establishing their own businesses, and below, we’ll go into how long it takes to start a company.

Keep reading to learn more!

How to Start a Business

So, have you wanted to begin creating a business?

If you’ve wanted to venture out and build a brand and name of your own, you probably want to know the fundamentals of getting started. Let’s go into the steps of starting a business below.

Define What You Do

Before you set out to create a business, you should know the basics of what you want to do.

Of course, organisations always change and evolve, but successful business owners begin with a vision. They know which central service they wish to provide, the client needs they plan to meet, and who they believe their target audience is.

To get this part of it right, you need to do a lot of research. Make sure you’ve thoroughly ensured there is a demand for your products or services and that you know which demographics are looking for the solutions you provide.

This can take up to a few months, depending on how much research you do.

Get Your Domain

What is your domain?

It is the name by which your company is known on a public level. It will go on all of your official materials, your advertising, and your website, so make sure you choose wisely.

When selecting your domain name, make sure it remains memorable, fits with the tone and personality of your brand, and communicates what you do. Run it by a friend, loved one, or colleague to see if other people think it’s a good name.

How long this takes depends on you and how much time you dedicate to finding a domain that works.

Hosting Foundry can help you with your website’s web hosting and start a business.

Find a Business Location

Where do you plan to work? Every business needs a specific location.

These locations range from an office in a high-rise to a desk in your home. Think about what you can afford and what type of building would best suit your needs.

Make sure you take into account any renovations you would need to make on your potential office and ensure it fits within your budget.

Finding a business location can take anywhere from a few weeks to 2-3 months.

Get the Proper Licenses and Permits

When you start a business, you often need proper licensing and permits.

Check with your local government to see what kinds of additional documentation you need. The requirements vary from location to location. Obtaining these documents often takes you from a few weeks to up to a month.

Your business also needs a seller’s permit if you plan to sell products.

Local Registration

You also need to register your company with the local government.

To do this, you will need to select the type of business you want to have, so make sure that you know which type of company you’d most like to create.

Completing this process takes about a month, including the time you take to decide which kind of company you would like to create.

Determine Your Funding Needs

Now, you need to determine how much funding you need and how you will get the funding.

This often takes a long time; in fact, it can last up to many months. To get started, do your research on what your overhead costs will be, including any shipping charges, product costs, utility and rent bills, and employee salaries.

All of this information should then go into your business plan. Your business plan consists of an overview of your entire company, including a detailed explanation of what you do, your organisational structure, your expenses, and your marketing plan. This usually takes quite a bit of time.

The exact amount of time depends on how much time you can devote to putting the plan together.

Getting Funding

After you’ve created your business plan, you should use it to try to get investors or a bank loan.

This gives you the funds you need to start your company. Often, this also takes a while, as banks and others who invest in your business will want to know how they will make their money back. While many wonderful new businesses launch all the time, newer companies are also unproven, so you will need to convince them you’ll be able to repay them.

How Long Does It Take to Start a Business?

So, how long does it take to start a business?

We recommend giving yourself a large amount of time to start your business. After all, this is the foundation of what you’ll do, so getting it right is important. Starting your company will probably take you at least a year or two.

It often takes even longer for a company to become profitable. After you launch your company, you need to work on raising business awareness and gaining your clientele. It takes 2-3 years for most small businesses to turn a consistent profit.

Ready to Start Your Business?

So, have you asked yourself, “How long does it take to start a business?”

If so, we hope the article above answered your question! It usually takes a while for businesses to get up and running and turn a profit. Still, if you have a dream and believe you can make it, the handful of years of work are worth it!

Have questions? Want more advice? Contact us today!

Business

The fall of Arcadia: what does it mean for the future of the high street?

ByCFI.co Blogger

The high street is changing. There’s no question. Predictions suggest over 18,000 high street premises could be left empty by the end of the year, while mainstays like high street banks are estimated to close their doors a final time by summer 2032.

The announced administration of the Arcadia group should come as no surprise in the current climate. The pandemic has sent earthquake-scale tremors through our shops and retailers. But in spite of this, there has to be some shock in the industry – after all, Arcadia, and many of the other fallen businesses, are and were huge entities. So how do businesses with such apparent strength fall with such devastating impact?

The answer lies in technology. Technology has underpinned many of the world’s greatest advancements but in retail, take up of advancements has been slow enough to shake the foundations of some of our most loved stores and leave them weak and vulnerable.

The collapse of the Arcadia group is systematic to an organisation that has failed to grasp the opportunities of technology, especially of online. The pandemic may have spearheaded online shopping’s growth, but consumers have been shopping online – or using bricks and mortar stores as ‘showrooms’ to then buy online – for years. And while stores like Primark have done well with no online presence, they have a very different value-based proposition which means it’s worth the trip to the shop to rummage through the aisles – whereas the premium products that Arcadia Group sells can make people think twice about the effort when better deals are available online.

Arcadia would have always been heading into a red territory regardless of Covid-19 due to their lack of online penetration.

Then there’s the growing movement to shop small and shop local. This, of course, is a positive movement that supports fledgling and growing brands. But it’s also a movement that puts big businesses in an even weaker position. In order to thrive in 2021 and beyond, retailers will need to consider not just their investment in technology to facilitate convenience, but in their wider values and how they support communities and initiatives that benefit the world. Focuses on environmentalism (without ‘greenwashing’) and sustainability will play an even greater role in the year to come.

Business

What are potential investors looking for in a start-up business?

ByCFI.co Blogger

When potential investors scour the marketplace for possible investment ventures, the vetting process consists of a series of checks, investigations and an extensive due diligence process to help ensure that the selected investment opportunity is the right fit. The type of investor attracted to your start-up business will depend on a series of factors, such as investment returns available, financial growth opportunities and brand identity, all of which should be extensively detailed in a comprehensive and creative business plan, complemented by an innovative pitch.

What are potential investors looking for in a start-up business?

Your business plan will be the teller of all tales, detailing how you wish to breathe life into a concept, developing it into a fully-fledged business, worthy of investment. It will illustrate the direction that you wish to take your business in, your operational structure, marketing strategies, business development practices and a contingency plan. We share insight into what potential investors look for in a start-up business.

Return opportunities

There are numerous types of investors with varied expectations and offerings, such as industry background, sector experience, market share, vested interests and investment potential. The criteria will differ depending on the type of investor, such as family and friends which are typically the first port of call as they are easily accessible, there are no intermediaries involved and it’s a low-cost investment. If your family or friends contribute significantly to your business, mitigate the risk by signing a contract detailing the finer details and clarifying expectations.

You may turn to a traditional business loan to borrow start-up finance which will have less flexibility than an alternative finance facility and there are also government grants designed to support start-ups. In return, the bank may require you to sign a personal guarantee agreement in addition to committing to repayments. If you are unable to repay your start-up loan, the personal guarantee agreement will allow the lender to hold you personally liable for the debt, putting your personal assets at risk.

Corporate and entrepreneurial investors are dedicated to investing in new talent and nurturing new businesses from their inception. Many now have accelerators and incubators to support the birth of new businesses through knowledge sharing, providing seed capital and giving access to state-of-the-art resources. Angel investors are professional investors which can also offer mentorship in addition to flexible finance.

Each type of investor will expect a financial return differing in value or a stake in the business. It is also common practice to establish a set of targets for the start-up to achieve to access further investment.

Financial growth

The financial targets of a start-up are likely to be modest until the business establishes the brand, actively markets to consumers and accumulates cash from sales and investments. Your financial aims are a core determining factor for investors as they will actively look to invest to generate a profit, so prepare a realistic estimation of your forecasted income and financial targets to depict investment returns.

Service development

Investors looking to actively invest will be on the lookout for a start-up with a clear and established view of the future – not a short-sighted business plan. Ensure that you cover multiple eventualities for a service extension which are realistic and within your financial means. Focus on the imminent future of your start-up and provide a view into how you would establish partnerships and focus on business development to help expand your offering, e.g. taking the B2B route to target client clusters, in addition to B2B. This journey, if successful, will help increase your market share in addition to brand development, ongoing marketing efforts and advertising.

Brand development

Start-ups can formally and informally approach investors through innovative platforms, sharing their growth journey from day one, including updates and offering product trials. Online reward and equity funding platforms, Kickstarter, Indiegogo and GoFundMe are examples of popular crowdfunding sites which can assist with brand exposure, in addition to encouraging contributions from professional investors and interested individuals.

If your start-up is likely to depend on establishing an online presence for conversions, invest in web development services early in the process, such as for search engine optimisation purposes. Your public relations and marketing strategy will also indicate to the investor the level of exposure your start-up is likely to receive.

Contingency and business rescue plan

The formation of a contingency plan in the event the business takes an unexpected turn will indicate your awareness of the risks associated with starting up a business. The resilience of start-ups has been highlighted in no better way than during the coronavirus pandemic. As many have reacted fast to economic uncertainties, business growth has been inevitably limited, halting the creation of new jobs. Many young and veteran businesses have found ways to overcome the pressures of the pandemic and capitalise off new opportunities, showing how determination and creativity can help increase business prospects during unstable times.

In addition to your business plan, investors will be interested in the business driver as the success of their investment will initially lie with you. The approach you take to interact with investors will help shed light on your mind-set and risk appetite. Taking a business idea and developing this into a tangible entity requires patience and willpower, in addition to industry experience to help you make decisions in the best interests of the business. Investors are interested in ambitious start-up owners who have the passion to inspire others with their business vision, helping to build a strong infrastructure for the business.

During the vetting process, you will receive constructive criticism, helpful suggestions and recommendations, instrumental to the success of your start-up. Keeping an open mind can help give you the flexibility to steer your business in the direction required to secure investors, taking into consideration the industry understanding and market experience of your investor.

Jon Munnery is a partner at UK Liquidators, a firm of licensed insolvency practitioners providing company recovery and liquidation advice to company directors in financial distress, include Covid-19 business support services.

Business

Five Largest US Oil and Gas Companies Lost $307bn in Market Cap YoY, a 45% Plunge Amid COVID-19 Crisis

ByCFI.co Blogger

Even before the coronavirus pandemic, the oil and gas industry was faced with slumping prices. However, with a record collapse in oil demand amid the coronavirus lockdown, the COVID-19 crisis has further shaken the market, causing massive revenue and market cap drops for even the largest oil and gas companies.

According to data presented by StockApps.com, the top five oil and gas companies in the United States lost over $307bn in market capitalization year-over-year, a 45% plunge amid the COVID-19 crisis.

Market Cap Still Below March Levels

Global macroeconomic concerns such as the US-China trade war and the oil overproduction set significant price drops even before the coronavirus outbreak. A standoff between Russia and Saudi Arabia in the first months of 2020 sent prices even lower.

After global oil demand plunged in March, Saudi Arabia proposed a cut in oil production, but Russia refused to cooperate. Saudi Arabia responded by increasing production and cutting prices. Shortly Russia followed by doing the same, causing an over 60% drop in crude oil prices at the beginning of 2020. Although OPEC and Russia agreed to cut oil production levels to stabilize prices a few weeks later, the COVID-19 crisis already hit. Statistics show that oil prices dropped over 40% since the beginning of 2020 and are hovering around $40 a barrel.

Such a sharp fall in oil price triggered a growing wave of oil and gas bankruptcies in the United States and caused a substantial financial hit to the largest gas producers.

In September 2019, the combined market capitalization of the five largest oil and gas producers in the United States amounted to $674.2bn, revealed the Yahoo Finance data. After the Black Monday crash in March, this figure plunged by 45% to $373bn. The following months brought a slight recovery, with the combined market capitalization of the top five US gas producers rising to over $461bn in June.

However, the fourth quarter of the year witnessed a negative trend, with the combined value of their shares falling to $367bn at the beginning of this week, $6.2bn below March levels.

Exon Mobil`s Market Cap Halved in 2020, Almost $155bn Lost YoY

In August, Exxon Mobil Corporation, once the largest publicly traded company globally, was dropped from the Dow Jones industrial average after 92 years. As the largest oil and gas producer in the United States, the company has suffered the most significant market cap drop in 2020.

Statistics indicate the combined value of Exxon Mobil`s shares plunged by 52% year-over-year, falling from almost $300bn in September 2019 to $144bn at the beginning of this week.

Phillips 66, the fourth largest gas producer in the United States by market capitalization, witnessed the second-largest drop in 2020. Statistics show the company`s market cap dipped by 49.6% year-over-year, landing at $22.9bn this week.

The Yahoo Finance data revealed that EOG Resources lost over $21bn in market cap since September 2019, the third-largest drop among the top five US gas producers.

Conoco Phillips witnessed a 42% drop in market capitalization amid the COVID-19 crisis, with the combined value of shares plunging by almost $30bn year-over-year.

Statistics show Chevron witnessed the smallest market cap drop among the top five companies. At the beginning of this week, the combined value of shares of the second-largest US gas producer stood at $141.5bn, a 36.9% plunge year-over-year.

Banking

7 Mistakes to Avoid When Opening a Business Bank Account

ByCFI.co

When you’ve just begun a new business venture, one of the first things that you’re advised to do is open up a business account for the company. But, when you’re opening a business bank account, there are somethings that you’re going to want to avoid at all costs.

What should be avoided? We’re glad you asked because in this article we’re going to give you a list of things that you should try to avoid doing at all costs.

1. Incomplete Account Information

When you attend your account opening appointment, ensure that you’ve got all the documentation you need. And if you’re not sure if the document is required it’s best to bring it along just in case.

Before attending your meeting when setting up the appointment check with the bank about what documentation is required. This will reduce the likelihood that you don’t have all the information needed to begin setting up your account.

Having missing information could mean having to reschedule your appointment altogether.

2. Using Your SSN Instead of FEIN

If you’re not aware of what these initials stand for the first is your social security number and the next one is your federal employer identification number. When you arrive for your meeting ensure that the number you place on your account is your FEIN and not your SSN.

Many business owners that are just starting out make the mistake of placing their SSN on the account, which can prove problematic in the future especially when it’s time to fill out tax documents for your business taxes.

Anything that requires a number for your business should almost always feature the FEIN that was assigned to you when you filled out the paperwork to register your company as an LLC.

3. Having One Account

Some people may think that there’s no way they’re going to mix up the money that’s deposited into their account if they keep one account for personal and business needs. But, the reason that it’s recommended you have separate accounts is so that you don’t experience issues when it comes to doing your taxes, accounting needs, etcetera.

Another reason that you want to keep your accounts separate is that you’ll want to refrain from being tempted to reach into the money that is designated to the company. And if you’ve only got one account, it can be challenging to differentiate between your personal funds and the business funds.

4. Check-Signing Access

If you’ve got a business partner or plan to take on one in the future, you need to ensure that you provide them with access to sign checks. If you don’t provide your partner with check-signing access you’ll be the only one able to deposit checks or a check may be flagged if your partner attempts to sign it.

To avoid wasting time and becoming frustrated, ensure that you’ve taken care of this minor detail beforehand. You never know when you’ll need that check deposited, or you may be out of time and not able to do it yourself.

5. Picking the Wrong Bank

Not all banks are created equal, nor do they all offer the features that you would be looking for when it comes to opening your business account with them. The bank you choose may have strict limitations on what they will allow a new business owner to take out when it comes to business credit.

Another thing you’ll want to watch out for are banks that are new and not as well known. The reason that you want to steer clear of these banks is for the protection of your company money.

When it comes to your business banking account, you want to make sure that you’re able to meet the requirements of the bank and protect your money at the same time.

6. Minimum Monthly Balance and Fees

Another common mistake made by small business owners is not taking note of the minimum monthly balance. This means that at the end of every month, your account must have a specific amount in it or you’ll face some kind of monetary penalty.

You’ll also want to ask about any monthly maintenance fees that will be deducted from the account. It’s also beneficial to ask if there’s anything that you can do on your side that will wave additional fees such as making a large transfer to your business savings account.

Speaking of your business savings account the typical bank will only allow you to make a specific number o withdrawals from this account every month. If you exceed the number of acceptable withdrawals, you may face a monetary fine.

7. Ordering the Wrong Checks

Ensure that when you’re ordering checks for your business, the correct name is printed on the checks. Some people make the mistake of using other names or their personal names on the check instead of putting the name of the business.

The reason that this is problematic is that when a processor of a payment goes to put a payment through to prevent fraud, they ensure that the name on the check is legit. If your name or another company name appears, then it could lead them to flag the payment as a fraudulent payment.

This would then leave you having to be on a lengthy phone call explaining the mistake and inevitably having to order all new checks. Avoid this from the beginning and ensure that the checks you’ve ordered for your business have the legal name of the business that appears on all your company paperwork.

Trust us, no one wants to deal with the headache of having to wait for checks to arrive in the mail.

Business Bank Account Mistakes Avoided

Now that you know all of the mistakes not to make when opening your business bank account, you can open your account. Avoiding the mistakes listed above will help you to save valuable time and frustrations correcting your mistakes.

If you’ve found this article useful, then you’re going to want to check out some of our other articles. Our site focuses on providing engaging and informative content about things like finance and business every day.

You won’t want to miss out on the advice offered on our site.

Business

Working from home: Are you breaking confidentiality laws?

ByCFI.co Blogger

What happens to confidential waste while working from home?

With employees working from home because of the Covid-19 outbreak, how safe is the information they’re accessing and disposing of now it’s out of the office?

According to one specialist waste handling organisation, remote working means new headaches for companies and their data security.

UK waste collection agency BusinessWaste.co.uk knows that even during the crisis of a pandemic, confidential waste must be disposed of correctly in order to protect businesses and their customers from fraud or blackmail.

“Even if people are working from home, they need to be mindful that any waste they create needs to be destroyed in the same ways it would if they were in the office,” says BusinessWaste.co.uk company spokesperson Mark Hall. Companies could still be in line for massive fines if they get it wrong, Hall warns.

What counts as confidential waste?

Essentially, confidential waste refers to documents possessed by any company that can expose discrete information about suppliers, customers, or employees.

“Basically, if it details any information about the nature of your work or anyone associated, then it counts as confidential information which will need proper disposal,” says spokesman Mark Hall.

However, it can be very tricky to distinguish what counts as confidential waste, as many businesses work with different mediums of materials.

BusinessWaste.co.uk has compiled a list of different types of confidential waste, making it easier to understand which work-related items will need expert disposal.

Personnel files and contracts – including CVs and application letters
Financial records – such as order forms, invoices, bills and statements
Health and social care records
Criminal Records
Business cards, ID badges, and security passes
Letters, memos, and other items containing names and addresses.
New business proposals and business plans
Used notebooks
Product samples or profiles
Research data
Diaries
Photographs

“If you’re working from home, you need to be aware that any of these resources could contain confidential details which could be dangerous in the wrong hands,” says Hall.

“So please make sure you or your staff don’t throw this information into the household waste!”

What could happen if it’s not disposed of properly?

Failing to dispose of confidential waste can lead to a variety of outcomes, ranging from prosecutions under the law to identity theft and fraud.

“Your company could fall victim to industrial espionage, so it’s really important to make sure that private information cannot be leaked to rival companies through improper disposal,” says Hall.

Although it might be easier to just chuck all rubbish into your household waste bin, there are legal implications such as breaching the UK 1988 Data Protection Act, which regulates the collecting, storing, and destroying of confidential data.

Any companies that fail to oblige the act can face crippling fines from the UK data watchdog, the Information Commissioner’s Office.

“This is serious stuff that could ruin a company’s reputation and lose customers,” says Hall, “and if you’re the one discovered to be doing it, you could be fired.”

Confidential waste needs to be disposed of by a licensed waste removal company in order to comply with the latest laws and guidelines.

Actions you can take now

BusinessWaste.co.uk recommends that all members of staff be reminded about company policies regarding waste, and firmly told not to chuck any work materials into their household rubbish.

Mark Hall says that in an ideal world, sensitive information should not leave the office, so the best thing for businesses to do is to try to restrict what is essential and needs to be taken home.

Another suggestion from Hall is to make as many work tasks computer-based as possible, with sensitive files only accessible from a secure device approved by your company.

“The best thing you can do if you’re unsure is to keep all information secure and together at your home workspace, and when it is safe to do so, take it all back to work for proper disposal,” says Hall.

“If in doubt, don’t chuck it out.”

For further information see https://www.businesswaste.co.uk/confidential-waste/ and https://www.businesswaste.co.uk/waste-transfer-note-faqs/

Business

5 Reasons Why Your Business Needs Managed IT Services

ByCFI.co Blogger

The way different companies used to do business has been changed dramatically in the last few years. Now, there are the latest and modern solutions for companies and businesses in order to enhance their productivity and grow their businesses.

Managed services for businesses have genuinely revolutionized the start-up culture. There are different kinds of service providers for your business all around the globe. It means you don’t have to a separate department for everything. Instead, you can just get managed services. For example, Managed IT services for small and mid-sized organizations are easily available, and you can easily take benefits from it.

Here are some of the reasons that make managed IT services a must-have for your business:

Efficient and Reliable IT Operations

When it comes to IT operations, you need to have an efficient and reliable team to take care of the important things. It is only possible when you have a team full of experts to perform on-demand IT support. Therefore, if you get managed IT services, you’ll know that you have a collaborative partner to make things easy for your business. Hence, you’ll be able to focus on matters other than IT support.

Enhanced Compliance and Security

IT management services make sure that they provide ultimate compliance and security to your business. If you have an in house IT team, then if things go south and there is a security breach, your system will be compromised. So, you’ll have to spend a good deal of money to make sure that you have unbreakable security. But, if you get managed services, then they will take care of all the security details for your business.

Proactive Maintenance Approach

When it comes to IT support, it means that you’ll be needing regular maintenance. This maintenance can be extremely time consuming, and if not done on time, it can affect your business operations. Therefore, make sure that you have the right approach for maintenance. It is important because, if delayed, it can cause serious damage to standard operations and workflow of your business.

A Cost-Effective Solution

If you are a small or medium-sized business, then obviously, finance is difficult for you to manage. You can’t afford to build a complete in-house tech support team. It requires a lot of infrastructure and resources. Therefore, getting the services of a company is a cheap and wise option for small and medium-sized businesses. Now, even the big companies around the globe are choosing such companies because of all the benefits they have to offer.

Enables the Internal Staff to Be More Productive

Lastly, the most important thing for any business is the high productivity of the staff. When you have managed services from another company, it’ll definitely easily burden off your own employees. Hence, they will have more time and resources to focus on other important business operations. It’ll be the ultimate help for your business’s growth because his growth highly depends on the productivity of your employees.

Banking

Nigerian bank DLM on the move delivers at all levels – with exciting plans in the pipeline

ByCFI.co Blogger

DLM Capital Group – a developmental investment bank that supports economic and social infrastructure projects with the aim of driving GDP growth and improving lives.

Founding chairman and group CEO of investment firm DLM Capital Group , Sonnie Ayere — Founding chairman and group CEO of investment firm DLM Capital Group, Sonnie Ayere

DLM Advisory Partners (DLMAP), formerly Dunn Loren Merrifield Advisory Partners, is the advisory and capital-raising arm of DLM Capital group. The principal services provided by DLMAP include financial advisory, debt capital-raising, equity capital raising, mergers and acquisitions, and company set-up advisory.

DLMAP has played a leading role in structured finance and securitisation within Nigeria. “We have acted as sole arranger to more than 80 percent of structured finance transactions in Nigeria, and 100 percent of all securitisation transactions in the market,” says CEO Sonnie Ayere.

Most Innovative Transaction of 2019

In 2019, DLM executed the first Bus Rapid Transit (BRT) securitisation in Nigeria, working with the sponsor, Primero Transport Services Limited (PTSL). The system caters to residents of the country’s most densely populated city, Lagos. DLM raised ₦16.50bn ($45.8m) through the securitisation of the company’s BRT tickets receivables. The sponsor is licensed to operate the longest BRT route in West Africa, 35.3km, with its 434-bus fleet.

DLM Capital Group

A feasibility study conducted put the daily passenger carriage at about 226,300 passengers per day. Due to working capital pressures, the company was only able to serve an average of 135,000 daily passengers before the securitisation transaction in 2019.

The ₦16.5bn 17 percent Series 1 Fixed Rate Bonds issued were primarily used to refinance all pre-existing commercial banking loan facilities on the books of the sponsor. The transaction provided the company with savings in interest, shaving the cost of funds from 27 percent per annum to 17 percent. At the same time, it extended the tenor of the company’s debt from three years to seven.

With this transaction, DLM was able to provide the company with up to 10 percent savings in interest, reducing the cash required to service debt and improving the company’s working capital. DLM also advised on the restructuring of the company’s balance sheet by moving the operating assets into a new vehicle and eliminated the strain of depreciation charges.

Focus for 2020

DLM is in discussions with industry stakeholders and umbrella bodies to establish proprietary funding conduits across key sectors of the Nigerian economy. It intends to include microfinance, agriculture, education, health care and a continuation of other funding programmes for the mortgage, real estate and transportation sectors.

Working with a DFI partner, the company recently concluded the design of an aggregation vehicle aimed at providing local currency, wholesale funding solutions to micro-lenders in Nigeria by way of loan book securitisation.

A similar platform to provide financing to primary users of agriculture commodities is currently being developed.

Business

Workers’ Comp Benefits and the Going and Coming Rule

ByCFI.co Blogger

Traveling for work is a complex issue when it comes to your eligibility for workers’ compensation. The general rule is that workers’ compensation doesn’t cover your commute to and from work.

Does Workers’ Comp Cover Travel for Business?

Yes, workers’ comp covers travel for business. When you’re traveling because of your work, you can claim workers’ compensation in the event of an injury. The workers’ compensation system operates the same way whether you’re actively on the job or traveling for your employer.

Personal errands during work travel are not covered; however, the travel itself and incidental activities like the hotel and meals still fall under the workers’ compensation system. Workers’ compensation covers travel for business except for strictly personal activities during the trip.

Does Workers’ Comp Cover Travel to and From Work?

Workers’ comp does not cover travel to and from work. However, there may be situations when you are traveling related to work that are actually covered. Travel to and from work is generally not included. Still, if you are running errands for your employer or on a work-related travel assignment, you may actually be classified as working.

It depends on whether you’re serving the interests of your employer during the travel. Although the general rule is that workers’ comp does not include travel to and from work, there may be situations where your traveling counts as being on the job.

Workers’ Compensation and Travel

The purpose of workers’ compensation is to provide employees easy access to financial compensation when they’re hurt at work. The general rule is that you can claim workers’ compensation for work-related injuries. If you’re on the job and you get hurt, you can access the workers’ compensation system to pay for your medical bills and provide replacement income.

However, workers’ compensation doesn’t cover the risks of daily life. For that reason, the employee’s personal commute doesn’t fall under the workers’ compensation system. If you get hurt going to or from work, you have to look to your own car insurance or personal insurance to pay your expenses. You may also bring a third-party claim for financial compensation, but the person or entity that caused your injury is responsible for your damages, not your employer.

Traveling for Work

However, even if you’re traveling at the time of your injury, you’re not necessarily out of the workers’ compensation system. You may be traveling for work and not realize it. When you’re traveling on company business, you’re still covered by workers’ compensation.

Even things that are incidental to the travel itself, like staying at a hotel or eating meals while away from home, can classify you as working for the purposes of workers’ compensation. It’s essential to evaluate the entire circumstances present when the accident occurs.

Buma vs. Providence Corp. Development – Nevada Supreme Court

In the Buma v. Providence Corp. Development case, the Nevada Supreme Court recently clarified the rules when it comes to what counts as work-related travel. Nevada Revised Statutes 616C.150(1) states that a person must show their injury arises out of the course of employment. The court said that a person might be in the course of their employment even if they’re not directly on the route of travel at the time of the injury.

In the Buma v. Providence Corp. case, the victim was the vice president of sales for his company. He worked from home and made his own travel arrangements. The victim traveled out of state for a conference. He stayed at a ranch with a friend and affiliate of the company. Together, the two prepared joint presentations to give on behalf of the company. The victim died while riding an ATV on the ranch.

The third-party workers’ comp insurer, and the lower court, denied the victim’s family workers’ compensation benefits. They said that the accident did not arise out of work duties. However, the Nevada Supreme Court vacated the lower court’s decision.

When Does an Injury Arise out of the Course of Employment for Workers’ Compensation Purposes?

The Nevada Supreme Court said that an injury arises out of the scope of employment when there is a causal connection between the victim’s injury and the nature of the employee’s duties. Under Nevada Revised Statutes 616B.612(3), all travel that an employee gets paid for is part of the course of employment.

However, even if part of the travel isn’t compensated hourly, it may still be work-related travel. Generally, workers’ compensation covers business trips. It covers the actual business part of the trip, but it also includes staying in hotels, sleeping, eating, and other navigation that has to happen for the trip.

Does the “Coming and Going” Workers’ Compensation Rule Apply During Business Travel?

In the Buma case, the lower court applied the “going and coming” rule. The rule prohibits compensation for injuries that occur during the commute. The Supreme Court explained that the employer is not liable for the daily dangers of the employee; however, the commuting rule isn’t applicable when a person travels for work. Under Nevada law 616B.612(3), traveling employees are covered, including acts that are incidental to traveling.

The court said that work travel doesn’t cover social and recreational activities that a traveling employee chooses to pursue. These are things that occur for strictly personal amusement. To be a personal activity, the employee must show an intent to abandon the job temporarily. It’s a very fact-dependent question that depends on the unique situation in each case.

Conclusion

The workers’ compensation commuting rule is complicated. There are times that work travel is covered, and you are eligible for benefits. Sometimes it can be a difficult question of whether you’re traveling for business. The Las Vegas workers’ compensation attorneys at Adam S. Kutner, Attorney at Law explain travel, and the 2019 Nevada Supreme Court case of Buma vs. Providence Corp. Development.

The best way to know if you qualify for workers’ compensation is by getting a personal review of your claim by a qualified and experienced attorney.

Business

Half of UK & US firms predict a recession in 2020 and a third predict a global recession

ByCFI.co Blogger

Just under half of firms in the UK (46%) and US (45%) predict their country will go into recession in 2020, according to research by trade finance provider Stenn
The poll of over 700 senior executives at medium-large sized businesses across the UK, US and China, also revealed that well over a third (37%) of UK firms and one in three (35%) US firms expect to see a global recession or international global crisis in 2020
In the UK, a third (33%) of firms expect the economy to shrink in 2020, with well over a tenth (14%) expecting it to contract by 1-3%
- A further 6% expect the UK economy to stay flat with no growth
In the US, almost one in five (16%) expect the economy to shrink in 2020, most likely by 1-3% (7%)
- In addition, 6% also expect it to stay flat with no growth.

Dr. Kerstin Braun, President of Stenn Group, commented: “2019 was weaker than expected and the stakes are only higher for 2020. Governments around the world are having to act forcefully to prevent the economic hit from Covid-19 deepening, taking a coordinated approach and opening the liquidity pipe for both fiscal and monetary support.

While a low interest rate provides an important cut in borrowing costs for businesses and consumers at this delicate moment, the coronavirus outbreak will be a real test of the health of the UK and US economies. Lowering rates alone isn’t enough to be effective in offsetting the economic impact of Covid-19. We already know the Chinese economy is going to be hit in the first and second quarter.

“For us, the plunge in oil coupled with the economic damage of Covid-19 marked the beginning of a global recession. Our research showed that at the beginning of the year, half of UK and US businesses predicted a recession and a third predicted an international global crisis, and just three months into 2020 and we’re starting to see this play out.”

Methodology

The survey was conducted by Atomik Research among 706 senior decision makers at medium-large sized businesses, across the UK, US, and Chinese markets. The research fieldwork took place on the 18^th – 28^th November 2019. Atomik Research is an independent creative market research agency that employs MRS-certified researchers and abides to MRS code.

About Stenn

Stenn International Ltd. is a UK-based, non-bank trade finance provider specialising in cross-border trade. Stenn’s trade finance solutions are comprehensive and can be combined to cover the entire supply chain from purchase order to delivery of goods. Innovative practices allow Stenn to finance in sectors and geographic regions currently underserved in global trade. The company operates globally with offices in Buenos Aires, Los Angeles, Dallas, New York, Miami, London, Amsterdam, Dusseldorf, Berlin, Mumbai, Chennai, Singapore, Hong Kong, Guangzhou, Hangzhou, Suzhou, Shanghai and Qingdao.

Learn more at https://stenn.com or follow Twitter, LinkedIn and Facebook.