Phraences:


I wonder what he saw in that particular farm that gave him the confidence to invest such an amount. Agritechs are new but there are certain Agritechs you invest in that if they flop at least everybody will be surprised.

There will be serious mistakes when you handle Investors funds that is 50 times or more of your capital.

An agric business that is worth N10 million, handling funds of over N500 million. Even the equity/debt ratio of banks are not as highly geared as this

Reason why CBN, SEC and NSE have stringent conditions for cash deposits taking Businesses.

A bank with a shareholders fund of N100 billion can be handling cash deposits of N1 Trillion

I'm not so familiar with these loans, hire purchases and other biz deals.

I've always wondered, if I pay by debt obligation let's say 10% on N1million to 80% and I'm no longer able to pay the further 20%, what happens to my collateral? Do I still completely forfeit it?

Hello House how reliable is this Wema ALAT “Savings & Invetment” App?

CsRockefeller:


I understand but, you should also be concerned if the loanee has d ability to pay easily from d biz at least that's what banks do even with the collateral as a bond.

Then why did the loanee ask for a 500k loan, which he promised to pay back within 12 months

CsRockefeller:
I'm not so familiar with these loans, hire purchases and other biz deals.

I've always wondered, if I pay by debt obligation let's say 10% on N1million to 80% and I'm no longer able to pay the further 20%, what happens to my collateral? Do I still completely forfeit it?

They will sell your collateral, use the proceeds to pay your balance and you will get your change.

emmanuelewumi:



They will sell your collateral, use the proceeds to pay your balance and you will get your change.

Hahahaha, not fair o.

emmanuelewumi:



They why did the loanee ask for a 500k loan, which he promised to pay back within 12 months

I'm just saying that a Bank/Financial institution might not be too interested in d collateral but d viability of d biz.

Good afternoon to all Ogas. Pls my friend need advice on her nvestment

The situation is real but the amount invested not exact.

She has a 12.4 Mar 2036 BOND with a yield of 13.9 %
14.4m was invested in October 2019.

Amount to be paid on maturity is 16.3m.(bought on discount)

Yearly coupon is about 2m

Total amount to realise on maturity is 48m assuming the coupons are not invested.

Now, if she liquidate the investment today, she will realise about 20m becos of drop in rates.
She can decide to invest the 20m in stocks at a minimum dividend yield of 15% for the next 16 years

Should she keep the bond till maturity or liquidate and invest in stocks.

Thanks in advance she reading as a guest.

CsRockefeller:


Hahahaha, not fair o.

The best thing is to pay up


The N1 million naira car can be sold for 400k, maybe the debt remains 100k. After that the debtor will get his balance of 300k.


He would be given between 2 weeks to 4 weeks of grace, although the interest will count for those periods

CsRockefeller:


I'm just saying that a Bank/Financial institution might not be too interested in d collateral but d viability of d biz.

They are interested in the viability of the business, your collateral is also important. It shows your confidence about the business.

You put your money where your mouth is

emmanuelewumi:



No wonder they are not happy that some people are investing in fixed income and portfolio Investments.

I know the returns on fixed income is too low, but people will invest in what they understand. They prefer losing money to inflation than investing in what they don't understand or have the time to monitor

My cousin lost N2 million in a digital agriculture investment operated by Menorah farms, I pray he gets his fund. I warned him but didn't listen

In January when they advertised their grass cutter cycle, I looked at what they were brandishing as their indices and I wasn't satisfied. I warned people on the digital agric thread concerning investing in that particular company, but I guess when people hear mouth watering ROIs with no basis, they allow the greed in them to determine their actions. It's so sad cos the CEO of that company is on AWOL

[No emotions or sentiments in business

CsRockefeller:


Hahahaha, not fair o.

Exactly !!!

emmanuelewumi:



They are interested in the viability of the business, your collateral is also important. It shows your confidence about the business.

You put your money where your mouth is

Greenvaiper:


In January when they advertised their grass cutter cycle, I looked at what they were brandishing as their indices and I wasn't satisfied. I warned people on the digital agric thread concerning investing in that particular company, but I guess when people hear mouth watering ROIs with no basis, they allow the greed in them to determine their actions. It's so sad cos the CEO of that company is on AWOL

I doubt if he is still in the country. They should get the BVN to the account.

They need to come together and institute a class action against the guy.

Too bad

Godbpraised:
Well said, I guess government should double up to create the environment for investments. Government is not good at investing that why u see the looting.

The only way government can create the environment for competition and increased investments is that when u av some one at the helm of government who knows about economic investments etc. Not a cattle rearer.

Some of the best presidents of America were farmers sha.....

I dey gbadun your delivery.

emmanuelewumi:



There will be serious mistakes when you handle funds that is 50 times or more of your capital.

An agric business that is worth N10 million, handling funds of over N500 million. Even the equity/debt ratio of banks are not as highly geared like this

Reason why CBN, SEC and NSE have stringent conditions for cash deposits taking Businesses.

A bank with a shareholders fund of N100 billion can be handling cash deposits of N1 Trillion

Who if I may ask and beyond that what was thier level of education.

arduino:

Some of the best presidents of America were farmers sha.....

emmanuelewumi:



They are interested in the viability of the business, your collateral is also important. It shows your confidence about the business.

You put your money where your mouth is

Well, the collateral is just security. No bank packages loan with the intent of eventually selling off collateral because if it gets to that stage, it means the bank has failed in its credit appraisal duties.

First Bank took a loss on its Sea Wolf loan despite the fact that it was fully collaterized with the Oritsemeyin and Onome Oil Rigs

einsteine:


Well, the collateral is just security. No bank packages loan with the intent of eventually selling off collateral because if it gets to that stage, it means the bank has failed in its credit appraisal duties.

First Bank took a loss on its Sea Wolf loan despite the fact that it was fully collaterized with the Oritsemeyin and Onome Oil Rigs

Insiders abuse. First Bank is like civil service, treated like no man's business. What about the $200 million dollars Atlantic Oil deal which went bad

If you want to talk about profitably managed banks talk of Zenith bank, GTB, Stanbic IBTC and Access bank

Go to the business section of Nairaland, more than 90% of the business and Investment opportunities marketed by Nairalanders usually ended in premium tears and heavy losses

emmanuelewumi:
.




Investors will always go to where they understand and where the security of their investments are assured.


We have more investments in the real sector compared to fixed income Investments.

Compare the total funds in fixed income Investments with the size of our economy. The stock market has a capitalisation of about N14 trillion, these are businesses operating in the real sector.


Are you suggesting that salaried workers should resign and jump into the real sector? Most of the small and middle scale businesses are all in the real sector and the largest employers of labour.


Investors will always invest in the businesses of players in the real sectors who complied with their investment objectives.


Operators should understand the language of finance and incorporate what financiers/Investors look out for.

Players in the real sector should have a system and structure in their businesses, and investors will be rushing to invest in them


Intelligent Investors are not gamblers.


Different strokes for different folks.

Investors are rational and not sentimental.


PE equity Investors are still investing hundreds of billions of Naira in real secror investments that scaled through their stringent criteria

Investors ought to be rational but I guess being rational is mostly subjective in this part of the world.

Information asymmetry exist so much in our economy that makes making rational decisions difficult. Thus, supposed rational decisions turn to irrational decisions if examined under the microscope of economics. This is worse in the financial sector where most investors just rush at financial instruments offering interest rates that can't even cover for inflation...

Look at sukuk for instance... 11.2% interest rate while official inflation rate is (14%)... unofficial inflation is over 20%.

Would you say that investing in Sukuk is rational given these parameters?

The real sector as represented by the stock market is the another good alternative right now because it also represents individuals pulling resources together to invest in the real sector.

A downside to them is you have to do your due diligence to avoid putting your money into a sinking company.

Salary Earners Quitting Their Job?

I certainly can't suggest that they quit their job... But putting their hard earned salary in interest bearing investments that pay less than 14% is bad investment because they are losing in the real sense.

emmanuelewumi:



Insiders abuse. First Bank is like civil service, treated like no man's business. What about the $200 million dollars Atlantic Oil deal which went bad

If you want to talk about profitably managed banks talk of Zenith bank, GTB, Stanbic IBTC and Access bank

Well, in any case, what I am saying is that lenders cannot afford to rely on only collateral security. I have seen the case where a faulty car was dropped as collateral. The lender was unaware because at that moment, the car seemed okay. Thats why we have the five Cs of Credit of which collateral is only one of them.

Godbpraised:
Who if I may ask and beyond
that what was thier level of education.

Abraham Lincoln
Goerge Washington
Theodore Roosevelt
Jimmy Carter
Bill Clinton too little farming background

einsteine:



Well, in any case, what I am saying is that lenders cannot afford to rely on only collateral security. I have seen the case where a faulty car was dropped as collateral. The lender was unaware because at that moment, the car seemed okay. Thats why we have the five Cs of Credit of which collateral is only one of them.

As stated it is the last thing the lender considers and it is an additional security.

U wan compare those guys with person wey get 50000 cows

arduino:

Abraham Lincoln
Goerge Washington
Theodore Roosevelt
Jimmy Carter
Bill Clinton too little farming background

LandMann:


Investors ought to be rational but I guess being rational is mostly subjective in this part of the world.

Information asymmetry exist so much in our economy that makes making rational decisions difficult. Thus, supposed rational decisions turn to irrational decisions if examined under the microscope of economics. This is worse in the financial sector where most investors just rush at financial instruments offering interest rates that can't even cover for inflation...

Look at sukuk for instance... 11.2% interest rate while official inflation rate is (14%)... unofficial inflation is over 20%.

Would you say that investing in Sukuk is rational given these parameters?

The real sector as represented by the stock market is the another good alternative right now because it also represents individuals pulling resources together to invest in the real sector.

A downside to them is you have to do your due diligence to avoid putting your money into a sinking company.

Salary Earners Quitting Their Job?

I certainly can't suggest that they quit their job... But putting their hard earned salary in interest bearing investments that pay less than 14% is bad investment because they are losing in the real sense.

It is their money, their investments, and their returns.

They are adults, who are solely responsible for their actions and actions.


You need to know that the money invested in fixed income, real estate, portfolio Investments come directly or indirectly from the real sector.


As usual, different strokes for different folks.

Do what works for you and they will do what works for them


It is an exercise in futility taking paracetamol for another person's headache.

Greenvaiper:


In January when they advertised their grass cutter cycle, I looked at what they were brandishing as their indices and I wasn't satisfied. I warned people on the digital agric thread concerning investing in that particular company, but I guess when people hear mouth watering ROIs with no basis, they allow the greed in them to determine their actions. It's so sad cos the CEO of that company is on AWOL

If the CEO is on AWOL, are you sure he has not relocated abroad?. With the money he collected from people, express route to Canada no go hard am..

What would you rather have investors do than invest in sukuk or just allow thier money sit ideal in the bank.

Me thinks investing in the sukuk was a fair deal

.

LandMann:


Investors ought to be rational but I guess being rational is mostly subjective in this part of the world.

Information asymmetry exist so much in our economy that makes making rational decisions difficult. Thus, supposed rational decisions turn to irrational decisions if examined under the microscope of economics. This is worse in the financial sector where most investors just rush at financial instruments offering interest rates that can't even cover for inflation...

Look at sukuk for instance... 11.2% interest rate while official inflation rate is (14%)... unofficial inflation is over 20%.

Would you say that investing in Sukuk is rational given these parameters?

The real sector as represented by the stock market is the another good alternative right now because it also represents individuals pulling resources together to invest in the real sector.

A downside to them is you have to do your due diligence to avoid putting your money into a sinking company.

Salary Earners Quitting Their Job?

I certainly can't suggest that they quit their job... But putting their hard earned salary in interest bearing investments that pay less than 14% is bad investment because they are losing in the real sense.

emmanuelewumi:



It is their money, their investments, and their returns.

They are adults, who are solely responsible for their actions and actions.


You need to know that the money invested in fixed income, real estate, portfolio Investments come directly or indirectly from the real sector.


As usual, different strokes for different folks.

Do what works for you and they will do what works for them


It is an exercise in futility taking paracetamol for another person's headache.

@Bolded

Where does majority of money invested in financial instruments come from?

NL1960:


If the CEO is on AWOL, are you sure he has not relocated abroad?. With the money he collected from people, express route to Canada no go hard am..

Sergie Mavrodi sleeping agents in Nigeria just dey wake up one after the other in the form of digital agriculture.

LandMann:


@Bolded

Where does majority of money invested in financial instruments come from?

Salaries of employees deducted for pension, less than 20% of bank deposits, dividends from investments, rental income.

There is a limit of the total bank deposits that can be Invested in fixed income.