₦airaland Forum

DIfferent strokes for different folks, I know many heavy weight importers from Alaba and Oduade building material market selling their stocks and moving into real estate development becauase of frequent naira devaluation. I use to do importation myself but stopped because naira devaluation keep wiping off my capital.

SeaTrade:
Depends on what you can import,
If you are a daredevil with better connect,bros that thing go be child's play ooo.
But let's play safe ,transport is a good sector as it always have demand, different unrelated clientele plus zero credit.
Devaluation can only dull your sales as an importer but usually the people that bare the brunt is the populace.
I am not even interested in import,na major distributor work for a moving product I dey find now but everywhere seems to be saturated!

Look for one drink called Bajinotu Poka and thank me later, I think their company is in Ogun state, it has not penetrate SE and SS market

SeaTrade:
Depends on what you can import,
If you are a daredevil with better connect,bros that thing go be child's play ooo.
But let's play safe ,transport is a good sector as it always have demand, different unrelated clientele plus zero credit.
Devaluation can only dull your sales as an importer but usually the people that bare the brunt is the populace.
I am not even interested in import,na major[b] distributor work for a moving product [/b]I dey find now but everywhere seems to be saturated!

XiaoLi:
Look for one drink called Bajinotu Poka and thank me later, I think their company is in Ogun state, it has not penetrate SE and SS market

Only premiums that I do.
But the name though

XiaoLi:
DIfferent strokes for different folks, I know many heavy weight importers from Alaba and Oduade building material market selling their stocks and moving into real estate development becauase of frequent naira devaluation. I use to do importation myself but stopped because naira devaluation keep wiping out my capital.

They are not moving to real estate because importation is no longer profitable even with the devaluation.
They are moving because their capital have supercede their market share and they are now running the business with a whole lot excess money than it requires,hence the need to diversify.
Same reason I want to go into trucking,not because I no get business but because the investment don dey pass the selling power wella.
You start to experience storage space problems.
Too much debt your customers will owe you because you are looking for who you will dump the excess goods on and start pursuing for your money upandan.
Too much slow selling goods weh go tie your money cos of excess liquidity.
Too much spoilage cause storage go fill to the brim and hence your workers will have a field day damaging your goods with their legs(climbing of carton)
Too much envy!
Arm robbers go dey reason your matter steady cos your warehouse too full.
FIRS go say make you pay VAT.
wastage of time value of money buy running the business with excess capital which can't generate any more income as sales have cap,etc...

You may have a point but all is not totally correct, this is from a personal experience as someone who was into importation.

SeaTrade:
They are not moving to real estate because importation is no longer profitable even with the devaluation.
They are moving because their capital have supercede their market share and they are now running the business with a whole lot excess money than it requires,hence the need to diversify.
Same reason I want to go into trucking,not because I no get business but because the investment don dey pass the selling power wella.
You start to experience storage space problems.
Too much debt your customers will owe you because you are looking for who you will dump the excess goods on and start pursuing for your money upandan.
Too much slow selling goods weh go tie your money cos of excess liquidity.
Too much spoilage cause storage go fill to the brim and hence your workers will have a field day damaging your goods with their legs(climbing of carton)
Too much envy!
Arm robbers go dey reason your matter steady cos your warehouse too full.
FIRS go say make you pay VAT.
wastage of time value of money buy running the business with excess capital which can't generate any more income as sales have cap,etc...

XiaoLi:
You may have a point but all is not totally correct, this is from a personal experience as someone who was into importation.

You think I wasn't talking from experience?
So if you were importing a movable goods,you will stop because dollar go up or what?

SeaTrade:
Only premiums that I do.
But the name though

Na street drink ooo, it is in high demand

emmanuelewumi:
Na street drink ooo, it is in high demand

Wow,sounds cool.

Lol baba, so you too sabi am

emmanuelewumi:
Na street drink ooo, it is in high demand

So if you see a business that will generate more profit than your importation business because of naira devaluation and you have trusted people who is ready to lead you, you will stick to your importation business because it is a movable gooods?

SeaTrade:
You think I wasn't talking from experience?
So if you were importing a movable goods,you will stop because dollar go up or what?

XiaoLi:
So if you see a business that will generate more profit than your importation business because of naira devaluation and you have trusted people who is ready to lead you, you will stick to your importation business because it is a movable gooods?

Of course I will do the new business,but will not stop the importation business,for "man no dey know" reasons.
I will use my extra funds to do it,not carry importation money and start blazing a new path and taking risks,before it blows up in my face.

Like Emma will say, man know thyself. Do what works for you shikena!

SeaTrade:
Of course I will do the new business,but will not stop the importation business,for "man no dey know" reasons.
I will use my extra funds to do it,not carry importation money and start blazing a new path and taking risks,before it blows up in my face.

emmanuelewumi:
United Capital interest rate is 15% per annum


You will get 90% of the value of your Investment as a loan.


Stanbic IBTC Bank will give you loan based on 80% of your Investments with their asset management subsidiary but their interest rate is 24% per annum

How logical is an asset back loan for a mutual funds investor? You are lending yourself your own money then pay the custodian 15%/24% for nothing but gimmick. If you are so sure of generating profits from whatever you are taking a loan for, why don't you use your funds directly to get things done and earn all profits instead of going through a vigorous means that will shredded you off a whopping 15%/24% of your own sweat.

I believe this type of loans are for stranded people and a mutual funds investor shouldn't subscribe to such, as you can liquidate your investment anytime deemed fit to cater for aspiring businesses

Good or bad deal?

Got N10m? Can lend for 10 years?

MTN will pays you 12.50%

You get interest payments only for 7 years, then interest & principal for next 3years.

Pro? If rates fall you earn 12% for 10 years

Con? If inflation rises or stays above 13%, you lose.

Speak with your banker

Credit:
Kalu Aja
@FinPlanKaluAja1

Foodempire:
How logical is an asset back loan for a mutual funds investor? You are lending yourself your own money then pay the custodian 15%/24% for nothing but gimmick. If you are so sure of generating profits from whatever you are taking a loan for, why don't you use your funds directly to get things done and earn all profits instead of going through a vigorous means that will shredded you off a whopping 15%/24% of your own sweat.

I believe this type of loans are for stranded people and a mutual funds investor shouldn't subscribe to such, as you can liquidate your investment anytime deemed fit to cater for aspiring businesses

It appears you are not business minded or Investment savvy


If you are a business man, you are eating your cake and having it.

A trader or business man with N22 million worth of mutual fund, can get a loan of N20 million.

If he got for 6 months, his total interest will be N1.5 million.

He used the N20 million to import goods and sold within 6 months, making profit of N5 million.

Paid interest of N1.5 million to the lender, meanwhile he has also earned dividend of N1 million from his mutual fund used as collateral within the 6 months of this transaction

Microfinance Banks and finance houses also buy mutual funds, FGN bonds etc.

They will use them to get loans at sub 20% and lend to their own customers at 40%.

Or some will promise depositors interest of 12% to 15%, are give such deposits out as loans at 40%

Foodempire:
How logical is an asset back loan for a mutual funds investor? You are lending yourself your own money then pay the custodian 15%/24% for nothing but gimmick. If you are so sure of generating profits from whatever you are taking a loan for, why don't you use your funds directly to get things done and earn all profits instead of going through a vigorous means that will shredded you off a whopping 15%/24% of your own sweat.

I believe this type of loans are for stranded people and a mutual funds investor shouldn't subscribe to such, as you can liquidate your investment anytime deemed fit to cater for aspiring businesses

You should learn the meaning of leverage and getting rich using OPM.

XiaoLi:
Look for one drink called Bajinotu Poka and thank me later, I think their company is in Ogun state, it has not penetrate SE and SS market

Not only Bajinotu, he can also add Jekomo, Round 5, Whiskey too.

Foodempire:
How logical is an asset back loan for a mutual funds investor? You are lending yourself your own money then pay the custodian 15%/24% for nothing but gimmick. If you are so sure of generating profits from whatever you are taking a loan for, why don't you use your funds directly to get things done and earn all profits instead of going through a vigorous means that will shredded you off a whopping 15%/24% of your own sweat.

I believe this type of loans are for stranded people and a mutual funds investor shouldn't subscribe to such, as you can liquidate your investment anytime deemed fit to cater for aspiring businesses

emmanuelewumi:
It appears you are not business minded or Investment savvy


If you are a business man, you are eating your cake and having it.

A trader or business man with N22 million worth of mutual fund, can get a loan of N20 million.

If he got for 6 months, his total interest will be N1.5 million.

He used the N20 million to import goods and sold within 6 months, making profit of N5 million.

Paid interest of N1.5 million to the lender, meanwhile he has also earned dividend of N1 million from his mutual fund used as collateral within the 6 months of this transaction

Gbam. This can be liken to what @jedisco was saying. The rich keep getting richer because they understand the secret of money.

I have heard of a transporter who buys his buses on lease even though the cash is available to do 'cash down'. A new bus, all things being equal doing Lagos-Benin for 6 days a week can balance the money in 18 months.

emmanuelewumi:
It appears you are not business minded or Investment savvy


If you are a business man, you are eating your cake and having it.

A trader or business man with N22 million worth of mutual fund, can get a loan of N20 million.

If he got for 6 months, his total interest will be N1.5 million.

He used the N20 million to import goods and sold within 6 months, making profit of N5 million.

Paid interest of N1.5 million to the lender, meanwhile he has also earned dividend of N1 million from his mutual fund used as collateral within the 6 months of this transaction

He still lost 500k ,I wonder how you failed to see it.
If he had not bought mutual funds and used that his money to import, he would have had all the 5m to himself.
But according to you,he should buy mutual funds and use as security to get a loan to import.
Okay,still on the 20m loan,he pays interest of 1.5m throughout the period of the loan.okay.
Take that off from his 5m profit is ;5m-1.5m=3.5m.
Okay add that to the 1m he made from the mutual funds and what you get is 4.5m.
Now tell me,where is the sense in this?
Not also forgetting that he will be remmiting interest and capital back to the bank monthly throughout the loan period which is going to take away all the purchasing power from his hands before the loan elapses,gradually killing the business and taking away profitability.
I don't see how this is such a smart thing to do tbh...

SeaTrade:
He still lost 500k ,I wonder how you failed to see it.
If he had not bought mutual funds and used that his money to import, he would have had all the 5m to himself.
But according to you,he should buy mutual funds and use as security to get a loan to import.
Okay,still on the 20m loan,he pays interest of 1.5m throughout the period of the loan.okay.
Take that off from his 5m profit is ;5m-1.5m=3.5m.
Okay add that to the 1m he made from the mutual funds and what you get is 4.5m.
Now tell me,where is the sense in this?
Not also forgetting that he will be remmiting interest and capital back to the bank monthly throughout the loan period which is going to take away all the purchasing power from his hands before the loan elapses,gradually killing the business and taking away profitability.
I don't see how this is such a smart thing to do tbh...

I used money market fund with the assumption that he didn't get capital appreciation from the fund.


At a dividend of 500k earned every quarter, he could have also used the dividends to create more wealth

emmanuelewumi:
I used money market fund with the assumption that he didn't get capital appreciation from the fund

Leave appreciation out of it,cos there is no guarantee that it can't depreciate as well(commercial papers of companies that even goes moribund)
Let's talk interest and work with what's projectable.

see free investment & business advice everywhere......
we dey follow learn Thanks in advance

SeaTrade:
Leave appreciation out of it,cos there is no guarantee that it can't depreciate as well(commercial papers of companies that even goes moribund)
Let's talk interest and work with what's projectable.

Do you know the rigourous rating that a company must have before SEC will approve commercial paper issuance?

Commercial papers are for maximum of 270 days

SeaTrade:
They are not moving to real estate because importation is no longer profitable even with the devaluation.
They are moving because their capital have supercede their market share and they are now running the business with a whole lot excess money than it requires,hence the need to diversify.
Same reason I want to go into trucking,not because I no get business but because the investment don dey pass the selling power wella.
You start to experience storage space problems.
Too much debt your customers will owe you because you are looking for who you will dump the excess goods on and start pursuing for your money upandan.
Too much slow selling goods weh go tie your money cos of excess liquidity.
Too much spoilage cause storage go fill to the brim and hence your workers will have a field day damaging your goods with their legs(climbing of carton)
Too much envy!
Arm robbers go dey reason your matter steady cos your warehouse too full.
FIRS go say make you pay VAT.
wastage of time value of money buy running the business with excess capital which can't generate any more income as sales have cap,etc...

This is summary of business 100%

emmanuelewumi:
Do you know the rigourous rating that a company must have before SEC will approve commercial paper issuance?

Commercial papers are for maximum of 270 days

Doesn't make it fail proof or undepreciatable.
Why don't we work with interest since this is workable.
Leave appreciation out of it cos it is simply gamble,
You can't know if it will appreciate or not,rather a very good guess.

XiaoLi:
Look for one drink called Bajinotu Poka and thank me later, I think their company is in Ogun state, it has not penetrate SE and SS market

The market is saturated already.

E don red, for those looking for investments that will pay 30% in 1 year.

https://punchng.com/well-dump-victims-corpses-at-your-family-house-investors-warn-ceo-of-failed-mba-forex-trading-firm/

XiaoLi:
E don red, for those looking for investments that will pay 30% in 1 year.

https://punchng.com/well-dump-victims-corpses-at-your-family-house-investors-warn-ceo-of-failed-mba-forex-trading-firm/

As a matter of caution in any investment product, no matter the promised rate or returns always let the safety of your capital take priority over returns/rate whether long or short term ie taking calculated risk.

emmanuelewumi:
It appears you are not business minded or Investment savvy


If you are a business man, you are eating your cake and having it.

A trader or business man with N22 million worth of mutual fund, can get a loan of N20 million.

If he got for 6 months, his total interest will be N1.5 million.

He used the N20 million to import goods and sold within 6 months, making profit of N5 million.

Paid interest of N1.5 million to the lender, meanwhile he has also earned dividend of N1 million from his mutual fund used as collateral within the 6 months of this transaction

The illustration you put up there is best described of a fearful business man, getting a loan to boost one's business is great but as far as mutual funds investor is concerned this type of loan is unsuitable. such business man is only afraid to take the bulls by the horn.

He's like someone looking for the best way to die, forgetting all die na die. If you fail to pay back the loan , your asset will be forfeited so why not take your your own destiny in your hands.

It appears as if you are running your business on loan but in the real sense of it, you are only making use of your own funds yet you still pay interest on it, if anything goes wrong it's still a one way ticket thing.

Foodempire:
The illustration you put up there is best described of a fearful business man, getting a loan to boost one's business is great but as far as mutual funds investor is concerned this type of loan is unsuitable. such business man is only afraid to take the bulls by the horn.

He's like someone looking for the best way to die, forgetting all die na die. If you fail to pay back the loan , your asset will be forfeited so why not take your your own destiny in your hands.

It appears as if you are running your business on loan but in the real sense of it, you are only making use of your own funds yet you still pay interest on it, if anything goes wrong it's still a one way ticket thing.

I actually agree with you and seatrade. It really does not make any sense paying 15/24% interest on a loan when your collateral for the loan can easily be liquidated.

If the collateral was a house or landed property, it will make more sense

If I am going to take a loan with my mutual fund as collateral, the interest on the loan has to be less than 5%

NL1960:
Gbam. This can be liken to what @jedisco was saying. The rich keep getting richer because they understand the secret of money.

I have heard of a transporter who buys his buses on lease even though the cash is available to do 'cash down'. A new bus, all things being equal doing Lagos-Benin for 6 days a week can balance the money in 18 months.

This type of leverage is different, when you keep a liquids (cash) type of collateral of same values with your creditors to secure a loan with interest, this is not called a loan but a joke and gimmick to milk you off.

Kindly answer this simple question: will you seek for a 18 naira loan from me while I have your 20 naira cash with me then still ask you for a pay back of 18.50 naira? A good leverage is when you have less and you are granted more in order to make more