CFI.co Blog - Page 35 of 47 - Business, Finance, Economics

If you have £100,000 or more in savings, keeping in safe is essential.

The risk-free, common-sense option to keep your money safe is to put into a savings account. Not only will your money be held safely, but it will also accrue interest.

But, are your savings working well for you? Are you getting the maximum amount of interest possible?

How well do you understand UK savings accounts?

We’ll explore the different savings options and the best place to invest 100k.

How to Find the Best Place to Invest 100k

There are several factors to consider before finding the best place to invest £100k.

Decide how long you would like to lock your cash away. The longer you leave your money, the more interest you will accrue.

Fixed-rate savings accounts that require you to hold your money in place over a certain amount of time can provide good returns. However, if you need your money back before then, you may not be able to access it.

Are you a pensioner or a student? Banks and building societies often offer preferential interest rates for different age groups. In which case, you should look for the best saving rates for pensioners or the best savings account for students.

You should also consider that you may need to split your money between multiple accounts.

Decide on whether you need access to your cash. Do you require online banking?

Is customer service important? Will you need to service your account in your local branch?

Work out what’s important to you, and make sure that you find an account that ticks all of the relevant boxes.

Don’t Put All of Your Eggs in One Basket

By spreading your investments across a range of different savings accounts, you will enjoy a variety of benefits.

If you have short-term requirements on some of your cash, put that money into an easy-access account with the best interest rates. For the rest of your cash, look for longer-term savings accounts that offer the best returns.

Similarly, if you are unsure about what you want to do with your money, keep it in easy-access savings accounts until you have decided. That way, you can still move your money out when you have a long term plan.

Financial Services Compensation Scheme

When you invest any money into a UK bank or building society account, you are protected. The Financial Services Compensation Scheme protects savings of up to £85,000, or £170,000 if it is a joint account.

If you are looking to place your £100,000 or more into any type of savings account, you will need to set up at least two different accounts with different banks to protect your money.

Alternatively, if you can set up a joint account, you will benefit from the higher level of protection.

The Financial Services Compensation Scheme is in place to protect your money in the event of the bank or building society being able to pay you your own money.

Making Use of ISAs

Savings accounts in the UK are subject to tax-deductions on interest payments.

Individual Savings Accounts (ISAs) offer the opportunity to save up to £20,000 each year, tax-free. If you have a partner, you could both invest £20,000 each in your own ISAs.

If you want to make the most of your savings, then you should take advantage of your tax-free savings allowance by opening an ISA.

You could opt for Cash ISA or stocks and shares ISA or a combination of both.

A cash ISA will act in much the same way as a savings account. With a stocks and shares ISA, your money is invested into stocks, corporate, and government bonds. You may return a greater degree of interest with this type of ISA; however, you may lose money too.

Finding the Right Savings Accounts

Find a savings account that offers you a rate of interest that is higher than the rate of inflation.

Inflation rates directly affect the value of your savings. If you place your money into an account with a 2% interest rate, then after one year, you will have 2% more money.

However, if the rate of inflation is greater than 2%, you will have more money, but that money will have lower purchase power than it did a year before.

Regular Savers

Regular savers accounts often offer interest rates that are higher than the rate of inflation.

With rates of up to 5% available, this type of savings account is certainly worth exploring.

You will need to be aware of maximum deposit limits, as well as the length of time that the rates will be valid.

Fixed-Rate Savings Accounts

Fixed-rate savings accounts will offer you the same rate of interest over a specified period of time. Typically, your money will be locked into the account for between one and five years.

The longer you are willing to leave your money in this type of account, the higher the interest returns will be.

Don’t Overlook Current Accounts

It is easy to think that a current account is just for holding your cash and paying your direct debits; however, they can be a useful tool for depositing large sums of money.

Many current accounts will offer a reasonably high rate of interest.

Usually, current accounts will offer a higher rate of interest for a small amount, and then a lower rate for any money thereafter.

For example, a current account may offer 5% on the first £2,500 for one year, and then 1% on everything above that amount.

Always Research the Best Deals

The best place to invest 100k will depend on the interest rates offered by banks and building societies. Banking products change, so shop around and find the best savings account that will work for your money.

For more advice and information about making your money work for you, explore the other articles on the blog.

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.

Economics

Coronavirus Research Index Reveals which Countries Put the most Effort in COVID-19 Research

ByCFI.co Blogger

Finbold.com has launched the Coronavirus Research Index (CRI) to identify countries that are putting in the most effort in finding ways to manage the COVID-19 disease.

The index ranks the countries based on the number of active medical coronavirus studies that show which countries are actually executing the most research related to COVID-19 to understand the virus to find the effective means of managing the disease. According to the Index, China, the United States, and France are the top three countries leading in the number of active studies related to coronavirus.

China leads in studying coronavirus

The CRI shows that China has 60 active studies, with the United States having 49 ongoing studies. On the other hand, France has 26 active studies. Idas Keb, a co-founder at Finbold, on the findings commented:

“Interestingly, the index also reveals that while there is some correlation between countries that have the most COVID-19 cases and the number of medical studies, the majority of the countries are still far behind on coronavirus research. For example, Spain, which is second by the number of confirmed coronavirus cases, is not within the top 5 countries in the research index.”

The report features studies that are labeled as ‘Active’ on the ClinicalTrials.gov database. The studies have a different status like Recruiting, Not yet recruiting, Active not recruiting and Enrolling by invitation.

The research index also highlights the study title, the status of the study, the institutions carrying out the study and the interventions placed into managing the condition.

Currently, the Finbold.com Coronavirus Research Index identifies 39 countries with ongoing studies on COVID-19. All listed countries have confirmed cases of the novel coronavirus.

You can find the research and try out the tool here: https://finbold.com/coronavirus-research-index/

Banking

Is a SIPP (Self-Invested Personal Pension) a Good Idea for Freelancers

ByCFI.co

A quarter of British adults have nothing in savings. Meanwhile, one in 10 Brits admits they tend to spend more than they earn. As a freelancer, you can’t get caught without a good nest egg awaiting you during retirement. By setting up a self-invested personal pension (SIPP), you can prepare yourself for the year to come. A SIPP will help you save for retirement without worry you’ll spend your savings.

What is a SIPP pension exactly, and how does it work?

Keep reading to find out everything you need to know about SIPP investments as a freelancer!

What is a SIPP?

First, what exactly is a self-invested personal pension?

A SIPP is a pension that holds all of your investments until you retire and begin drawing a retirement income. This form of personal pension works similarly to a standard personal pension. The main difference, however, is that a SIPP offers more flexibility with the investments you choose.

Once you have your SIPP set up, you can add regular contributions to your nest egg. You can also make ad hoc payments into your self-employment pension. Then, your pension provider will claim tax relief and add it to your savings.

How Does It Work?

How does a SIPP work and help you save for retirement?

With a standard personal pension, all of your investments are managed for you. They’re controlled within the pooled fund you selected. With SIPPS, however, you have the freedom to select and manage your own investments instead.

You can also pay an experienced, authorised investment manager to make the decisions for you.

SIPPs are best for people who want to manage their own funds. By giving you control, your self-invested personal pension also allows you to switch investments as you’d like. That way, you have the peace of mind that you’re making investments with your own best interests in mind.

Why Is It Important as a Freelancer?

The majority of Brits between the ages of 22 and 29 have no more than £1,000 tucked away in savings. If your self-employed, it’s up to you to start a pension on your own.

Unfortunately, many self-employed people struggle to make ends meet as they grow older. By planning for SIPP investments now, you can prepare yourself for any rocky roads ahead.

There are a few benefits to choosing a SIPP, including:

You can receive pension tax relief from the government
A strong pension plan will give you low-cost access to professional investment managers
The right investment manager can help you invest your money in a range of assets
Choosing the right assets can help you manage risk in a sensible way
If you die before you turn 75, your pension will pass on to your beneficiaries as a lump sum
New pension freedom rules allow you to decide what to do with your pension savings when you reach retirement

As a freelancer, having the freedom to choose what you do with your self-employed pension is essential. Many full-time employees are already paying into a pension. In fact, employers are now obligated to automatically enrol employees into a workplace pensions scheme.

Other Options

If you’re currently self-employed and want to set up a private pension, start by finding any old workplace and personal pensions established in the past. Then, combine them into your new pension. Completing this process will make your new self-employment pension easier to manage in the long-run.

Working with a financial advisor can make this process easier, too. They can help move your pensions over into their system. Then, they’ll combine and transfer your pensions into your new SIPP pension plan.

Otherwise, might need to contact your previous pension providers to get your pension balances on your own.

In addition to a SIPP pension plan, you might decide on other options, including a personal pension or stakeholder pension. Self-employed individuals can also utilise the government scheme National Employment Savings Trust (NEST), too. However, there’s no “best” pension for self-employed workers.

It really depends on your own specific circumstances.

Ideally, try to find a provider who lets you make contributions when you want. As someone who is self-employed, your income might not end up as predictable as you’d like. Having control over the details of your self-employed pension can make it easier to manage.

Investments

Now that you know a little more about how SIPP investments work, let’s review the assets you can choose from. A few include:

Unit trusts
Some National Savings and Investment productions
Commercial property (shops, offices, factories)
Investment trusts
Government securities
Individual stocks and shares (quotes on the recognised UK or overseas stock exchange)
Insurance company funds
Traded endowment policies
Deposit accounts with banks and building societies

However, this is only a shortlist. Speaking with an expert can help you explore your options. There are also different SIPP providers who have different investment options available for you to choose from.

You can’t hold residential property directly within a SIPP with tax advantages that usually accompany pension investments.

However, you can hold residential property in a SIPP through certain types of collection investments. For example, a real estate investment trust would allow you to include the property in a SIPP without you losing tax advantages.

These investments are often subject to restrictions. It’s also important to note that not all SIPP providers will accept this type of investment.

In addition to your self-invested personal pension, make sure to take the time to develop an overall investment strategy. Planning now will help you in the future.

You can access and use your SIPP more flexibly now. According to new rules, you can now access the money in your SIPP at the age of 55.

Take a SIPP: Understanding Your Self-Invested Personal Pension as a Freelancer

Prepare for the future and make the most of your money. By understanding the importance of creating a self-invested personal pension, you can save away money as a freelancer. Then, you’ll have what you need to prepare for the day you retire!

Searching for more helpful investment tips? Explore our latest Investment Management guides today.

Wealth Management

Core principles to boost up your profit factors

ByCFI.co Blogger

While trading, every trader uses a unique trading strategies to navigate in the Forex market. Strategies are used by traders to help them to trade in a profitable way. You need to understand the fact that not all the strategies will work for every trader. A simple trend trading strategy can help you to secure profit, but still, you might not be able to make a decent profit after a few months. The market is always changing its nature and it’s your duty to keep pace with this dynamic market.

The market allows a trader to work as per their skills and strategies. If you have good and effective skills and strategies you will be able to make profits but if you have a lack of skills and strategies then you will find it difficult to make profit. Although there are some important principles that are common in the entire market for all traders to achieve their goals.

Pay attention to the indicators

It’s important for all traders to understand what is happening and what might happen in the market. Through the analysis of Forex indicators, you can understand the market better. Indicators play a crucial role in the market, so all traders should learn their uses. When you learn the use of the indicators, open a demo account with Rakuten so that you don’t have to lose too much money.

You can find out the economic situation of the market’s currency by using the indicators. The indicators also help traders to identify the best time for entry and exit in a profitable way. If you can identify the best times then it will maximize your profits by reducing your losses.

Keep a personal trading record

Many traders fail to keep accurate and faithful trading records and thus can’t identify their previous mistakes or rectify them. Trading records can enhance a trader’s entire trading system, as it allows you to trade by thinking twice to find out whether you will make profit or not. Once you develop the habit of keeping the record, you can execute quality trades in the fx trading account. Most importantly, you will start building up confidence which is the most crucial component of trading.

You can make better strategies and skills in your trades by keeping trading records. A trading record acts as a guideline for traders as it helps them to rectify their previous mistakes and to trade with better strategies in the next move.

Embrace the risk management

If you want to become a successful trader, you should never avoid risk management in your trades. Risk management is essential for all the traders as they can lower the percentage of losses in the trades by setting proper risk management. Never break the rules of risk management as it can blow up the trading account. Stick to the safe method so that you can earn big amount of money. Analyze the losing orders and learn from your mistakes. Once you become good at trading, start placing trades with confidence.

You should never risk more than 2% of your trading capital and never change your risk management out of greed. Many new traders set higher risk management in their trades and thus end up losing their capital. It is also known that proper risk management is a savior for traders as it reduces the percentage of losses.

Conclusion

You can have your own rules for trading in the Forex market but don’t ever avoid the principle trading methods. The above points will help you to trade in a profitable way, you also need to pay attention to all the terms and conditions of the market. The entire trading system may become easier for you if you learn and understand the market more precisely. Mastering the Forex market is a never-ending learning process.

Technology

How do the professional cryptocurrency miners make a profit

ByCFI.co Blogger

Mining has become a very lucrative business. Due to the rising demand for cryptocurrency, thousands of people are trying to earn their living by mining it. In the past, mining Bitcoin was extensively popular. But things are getting much better. People are mining different types of crypto to compete with giant mining companies. Though you could have once made a decent amount of money as a solo miner, nowadays it has become way more difficult.

Does that mean, we the individual miners have no place? Well, it’s a bit of a tricky question as the answer is related to the actions of miners. If a person knows the ins and outs of the mining business, it can be a life-changing profession. Let’s learn some of the key steps which miners are using to make big profit from this market.

Return over investment

The professional miners have a clear knowledge of ROI which is often known as a return over investment. You don’t want to spend a huge amount of money setting up a personal mining rig without knowing the ROI. You have to consider mining as a business and only then will you be able to come up with a unique idea that will tell you how much money might get from per month. Once you know your monthly income from mining, it’s just basic math to find out how long it will take to cover the investment. In the past, the mining process was much easier but things are extremely difficult now. Unless you have a super-powerful mining rig, you should not expect to get a full return from your investment within a short time. So, consider the ROI factor whiling mining cryptocurrencies.

Selection of the digital asset

Selecting a digital asset is the most complicated task. It’s more like knowing what cryptocurrency to buy. Those who think Bitcoin mining is the only way to make money have a lot to learn about the crypto mining industry. People are mining Ethereum, Litecoin, Dash, etc. which is relatively easy. So, how do you find the best digital asset to mine? Pro miners use the real-time market data from bigX and they find the cryptocurrencies which are most likely to go in up the near future. So, it’s obvious you can’t make a big profit by mining one specific set of the asset. Try to diversify your mining rigs so that it increases your win rate. It might be tough for new miners but they must educate themselves to become pros.

The cost associated with mining

Setting up the mining rig is not the only cost by which you can make a decent profit from this market. You have to know about the associated cost in mining. In most cases, electricity consumption becomes the killers. But the professional miners use alternative solar power to mitigate the mining cost. Setting up a solar power hub for the mining rigs might be a very expensive process. Unless you are going to commit to this business in the long run, you should not entertain this idea. At times, you will also have technical faults in the mining rigs. To fix these problems, you have to spend a good amount of money. Include those costs in your mining business and find out how much money you can make from this industry. This data will help you to scale the business.

Conclusion

Mining can be a very profitable business for those who know the perfect way to run a rig. It requires constant supervision and adjustments to the strategy so that you can efficiently mine cryptocurrencies. Though new miners might not understand the importance of focusing on the minor details, it plays a crucial role in the ROI factor. So, follow the tips of this article very carefully.

Finance

Finding the standard size of your trading account

ByCFI.co Blogger

Very few traders pay attention to the size of their trading account. In most cases, the traders are biased in favor of leverage and they are enjoying the high-risk trading environment. But leverage is only for the expert Singaporean traders who know the risk management policy from the core. They often find it hard to manage the leverage trading account. The best practice is to use 1:10 leverage (maximum) while trading the real market. You can say that without using the leverage, you won’t be able to support your family. Well, it depends on the size of your account. If you invest $1000, it’s very obvious you are not going to make a significant profit from this market.

This content is not going to be like a traditional article. We are going to give you some key metrics that will allow you to manage the risk in trading. Most importantly, it will help you to find the amount of money which you must have to live your life with trading business.

Your family needs

First of all identity your family needs. Calculate the basic costs of your family life so that you know the minimum amount of money you need to make per month. In most cases, rookies don’t believe in such an approach. They become fairly aggressive with the trading method and try to earn money without having any goal. But such things are not going to work. This is not how the professionals place their trade in real life. They have specific sets of goals and for this reason, they can make a decent profit from this market. Being a new trader in the Forex market, it will be tough to trade with goals. Without developing these skills, you won’t be able to know the amount of money which you must invest in trading.

Depends on your win rate

The success rate of retail traders in the exchange traded funds greatly varies. You have to know your success rate by using the demo account. Those who have a high success rate can effectively use leverage. So, they will require a small amount of money. On the contrary, those who don’t have a high success rate must trade with a low leverage account. For them, leverage is like a time bomb. They will never know when it costs them a fortune. So, work hard on your trading strategy so that you can have a great win rate in trading. Never try to deal with the market with a low win rate as it makes the trading process much more complicated.

Profit factors

You might be thinking about how much money you can earn from this market. The professional usually makes 5-10%+ profit per month. So, use the simple mathematical calculation and find out how much money you need to support your family. If the number of too big, you must increase the size of your capital. But this should be done professionally. Borrowing money from other people to trade the market is a very big mistake. This is one of the most common reasons why rookies are losing money in trading.

The rookies might not be able to earn so much profit for the first few years. They should be happy with a 2-3% profit per month. Once they become good at analyzing the profit factor, they can easily scale up the size of their account balance.

Conclusion

There is no fixed rule to investing money at trading. But stop investing money that you can’t lose in trading. If we talk about the rule of thumb, it is imperative to invest at least $2000 at the initial stage. Anything less than that will force you to overtrade. Once you start overtrading, you are going to have a very long journey towards success.

Finance

How to Achieve Living Debt Free Quickly

ByCFI.co

Nowadays, households in Great Britain owe a sum of around £15,000.

If you find yourself struggling with debt, it can feel like a never-ending slog to pay back each and every penny.

But, if you’re interested in living debt-free and are ready to put in some hard work and diligent dedication, then luckily it’s possible to completely change your life.

Aside from paying off your high-interest debt first, here are a few more methods for helping you live a debt-free life faster:

1. Create an Accurate Budget

In the UK, 10% of people admit that they are terrible with money. But, it’s impossible to pay back debt if you don’t know exactly how much your lifestyle costs you.

Work out everything from how much you spend on food every week, how much your rent and bills cost, and how much you need for expenses such as travel or childcare.

Next, work out how much you spend on luxury expenses, such as clothing, going to the cinema, or eating out.

There are many budget tracking methods including apps, such as Monzo, or simply writing everything down with pen and paper.

Now, budget how much you can spend on monthly debt payments. Don’t overestimate this figure, it needs to be precise to give yourself peace of mind.

2. Take Things Slowly

Pummelling all of your earnings into paying off your debt is simply not sustainable. You’re likely to give up completely.

Instead, consider your debt payments as a slow but sustainable practice. Set yourself realistic goals, such as a year or two to pay off your debts.

Although it’s a good idea to cut down on luxuries, it’s still worth planning when and how you’ll treat yourself. Don’t let your entire working life be spent trying to pay down debt.

3. Learn to Love the Free Things in Life

There is no point in paying off your debt only to start spending again. You need to develop interests that are free.

Luckily, there are many free activities nowadays. Join a free running club with other locals, sign up to free trial classes, visit museums, and go to lectures.

You’ll be amazed by how much there is to do for free when you start looking. Regularly attending free events in your hometown is a great way to meet other people with similar interests and avoid those with expensive tastes!

4. Find a Mentor

Are you struggling to keep up the motivation to pay off your debts? Find someone who has travelled along this path before you to help keep you motivated.

This could be someone you know in your personal life or it could simply be a celebrity. There are hundreds of podcasts dedicated to finances and living debt-free.

You’ll find untapped expertise and knowledge that will help you improve your own circumstances.

For example, read this post by Giles Coghlan, chief currency analyst at HYCM, explaining the secret to trading on the financial markets!

5. What’s Your Reason Why?

Crippling debt has regularly been linked to depression. This is a good reason why you should sort out your finances.

But, if you aren’t struggling with a mental health issue, then perhaps this isn’t a good enough reason for you. Instead, find your own reason why you want to live debt-free.

Develop your own mantra that you repeat to yourself whenever you want to make an impulsive purchase.

6. Leave the Credit Cards Behind

Figure out why you are in debt. If you are simply an overindulger and spender, then there are many ways for you to trick yourself into avoiding spending money.

For example, taking only the exact amount of cash you need with you whenever you go out can stop you from spending too much on nights out.

However, if you are a struggling, single-parent, then speak to your local authorities and even your bank who may help you reduce your monthly payments.

Analyse your circumstances and the reasons for being in debt to help you avoid this situation in the future and repeating the same behaviour.

7. Generate More Income

This is an aggressive method for paying off debt that simply isn’t available to everyone. But, it can certainly help you get out of debt quicker.

By picking up a second job for a few months, you’ll drastically increase how much you earn. But, don’t ever put your mental health at risk by overworking yourself.

Only take a second job if you feel that you feasibly have the time and energy to do this.

Alternatively, consider other ways of making money such as selling unwanted clothes, furnishings, jewellery and kitchenware online. If you have a spare room, then consider renting out your room.

8. Build a Savings Account for Emergencies

As well as focusing on paying off debt, a good idea is to build an emergency fund. By doing this, you’ll have an out when something doesn’t go to plan.

By building up this fund of a few thousand pounds, you will have the peace of mind that you don’t have to stay in a job you hate, or that you can afford rent somewhere else if your tenancy is pulled from under your feet.

While paying off debt and building your savings account, be kind to yourself. Not everything is going to go right every month.

Can You Imagine Living Debt Free?

Picture how great you will feel when you are debt-free and have some savings in the bank. Living debt-free requires dedication and time.

When you’ve paid off your debts, you need to make sure that you don’t slip into your old ways and spend more than you earn. If you’re struggling to pay off your debts, then consider speaking to a financial advisor or make an appointment at your bank.

Are you interested in learning more about finance? Check out the dedicated section of our blog for more information.

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.