Africa is at the crossroads. Economic growth has consolidated across much of the continent, and in many countries exports are booming, foreign investment is rising, and the need for foreign aid is diminishing. Governance reforms are transforming the political landscape. Democracy, transparency, and accountability are advancing, giving people in the region a greater say in decisions that affect their daily lives.

Useful resources: Banking jobs in Africa

At the same time, despite the wealth created by growth, governments are failing to provide all their citizens with the opportunities they need to build a better future. Inequalities are growing. Poverty is not declining at the expected rate, and Africa is paying a higher price for malnutrition and child mortality than other regions of the world.

The region needs long-term growth that benefits all its people. This requires nothing less than economic transformation, with sustainable and inclusive financial mechanisms as a prerequisite.

Lack of access to financial services

Lack of access to formal financial services is a major constraint to transformative growth on the continent. Africa has the lowest level of access to financial services in the world. One in five Africans has an account with a formal financial institution; the poor, rural residents, and women are the most disadvantaged. Such financial exclusion undermines the potential to reduce poverty and stimulate growth that benefits all.

Agriculture is the sector most affected by financial exclusion. According to the 2014 Africa Progress Report, Agriculture, Fisheries and Capital: How to Finance Africa’s Green and Blue Revolutions, providing access to financial services (credit, savings, insurance) to farmers is critical to ensure that they can insure themselves against risks (drought or otherwise) and invest more effectively in better quality seeds, fertilizers and crop protection products. Without the option of insurance, farmers save their meager savings for contingencies and are unable to use their savings for investments that could increase their productivity. Similarly, because they cannot take out loans or entrust their savings to a specialized institution, they are often unable to seize business opportunities.

There is a need to transform the financial environment in Africa. Ten years ago, African countries were just emerging from the Heavily Indebted Poor Countries Initiative. Today, most of these same countries have entered the sovereign bond markets. However, Africa cannot meet its financial needs for infrastructure and skills development through aid and debt financing in official markets alone. Therefore, there is no substitute for domestic financing. Unfortunately, economic growth has done little to increase the savings rate or the proportion of GDP derived from domestic tax revenues, and both underscore the need for institutional reforms.

A need for greater financial inclusion

Greater financial inclusion allows Africa to tap into the enormous potential of its domestic resources to finance its huge infrastructure and energy deficit. As Kofi Annan, Chairman of the Africa Progress Panel, has repeatedly stated, “One of the biggest obstacles to energy sector transformation is inadequate tax collection and the inability of governments to establish a sound tax system. Taxes can cover nearly half of sub-Saharan Africa’s financing needs. ”The 2015 edition of the Africa Progress Report: Energy, Population and the Planet describes the energy financing gap in Africa in more detail.

Some countries are leveraging pension funds to finance the energy sector, such as Ghana, Mozambique, and Nigeria, which have chosen a more active financing strategy for their respective energy sectors. Generally, the amount of investment from pension funds is still limited, but it reflects the possibility of tapping into a large pool of savings.

At the last World Economic Forum in Davos in January 2016, Tidjane Thiam, a member of our panel and CEO of Credit Suisse, aptly pointed out that “the capital exists in Africa; the non-existence of pension funds is an aberration. Because of the region’s booming demographics, it is time to set up such funds. ”

The banking and financial sector in Africa needs to be rethought. Fortunately, there is momentum. Already, peer-to-peer and cell phone banking is flourishing. More and more Africans are convinced of the virtues of domestic savings, which will soon be captured by the insurance markets.

To meet the needs of the 80% of Africans excluded from the financial system, mobile technology (a) is a key factor. Local banks need to start functioning as banks worthy of the name in order to meet the demands of SMEs, many of which are run by dynamic agribusiness owners. Pension funds will increasingly be seen as an essential and exciting source of sustainable capital.

If Africa’s potential is to be fully unleashed for the benefit of all Africans and future generations, its financial environment must be transformed. And we need to start now.

 Starting up your own company and enterprise is the new trend these days. Although, running a business is not an easy task and requires effort and a lot of money. There, to crank your business out, you will need to set up your business firmly. The truth may sting you a little, but only a strong finance business back will make it.

No Worries, We Are Here With You!

However, it would help if you were not disheartened as we have come up with the idea to help you. The government of Singapore has come up with this quick small business loan scheme named SME Loan. In this article, you will get to know about SME loans and everything in detail about it. So without any further ado, let us take a glance.

What Is An SME Loan?

SME Loan is an abbreviation for small-medium enterprises loan. An easy SME Loan in Singapore is slightly different than other loans, and it is specially designed for small business owners and enterprises. The motto of small-medium enterprise loans is to determine small enterprises grow and earn profits from their work. Even if their invested capital is less, it is just the same because of an easy SME loan as a backdrop. If you take an SME loan, you are bound to pay installments at a fixed period in a certain amount.

What Are The Eligibilities Of Taking An SME Loan?

Yes, an SME loan might be easy to apply for. However, there are some specific eligibility criteria you must have why you opt for an SME loan in Singapore. We have listed down eligibility criteria point-wise so that it becomes easier for you.

1. Your company must be registered under the Singapore government. This step is done to make your business company official.
2. You will not get a small-medium enterprises loan unless thirty-five percent of the share is held by Singapore citizenship.
3. The number of shareholders must not exceed two hundred people.

What Are The Advantages Of An SME Loan?

An SME Loan is a boon for small enterprises. It would help if you acknowledged it at the right time to churn your business. If we take into consideration its positive sides, SME Loan would have a plethora of advantages. Let us look at the following points to comprehend it.

1. A SME Loan not only helps you to initiate your business but will help you throughout your journey when you need any financial assistance.
2. Loans of SMEs are comparatively low than other market loans.
3. A SME loan helps you strategise your business and make it more accessible and profitable.
4. Moreover, SME loan is a government’s policy, and hence there is no debate about it, enduring your loss even if it is not doing well in its business.
5. It reckons upon you that what loan you want. For instance, you may apply for a micro SME loan or opt for any long or short-term loans.

How To Make Your Small-Medium Enterprises’ Loan Valid?

There are many instances where people have had applied for a small-medium enterprises loan, but it eventually got rejected. If you want to sum up, applying for an SME loan is a little precarious. However, we are here to help you, and we will assist you regarding this. We have listed down few points which would make your reasons strong enough to get your small-medium enterprises loan cinched.

1. Try to make sure that your company has been established for at least one year. Although, the period is subjective for a different purpose. For instance, the reason why you are availing of this loan mandates a different specific period.
2. The small-medium enterprise’s loan authorities will most likely ask for proof in the form of the company’s profit and loss statistics. It is because they want to cross-check your company. Even though you have gone through a loss lately, and apparently because of which you are seeking an SME loan. They will check if you have made profits in your last financial years, excluding the sheer loss years.
3. The third point is one of the essential points. Suppose you already have a burden of any other loan or loans. There is a high probability that the authority would not provide you with a small middle enterprises loan. Therefore, please clear all your existing loans and then apply for an SME loan.
4. It is evident that loan lenders have their vision to see your company. If, for some reason, they do not find your company service or business demanding according to the ongoing trend. They might cancel your SME loan.
5. You should make your company’s official bank account. Any other account should not supersede it in any way. To sum up, the company should have no personal link to any of the company’s members.
6. The nominee or the company director should have something to submit order personal income should be stable enough.

How To Apply For A Small-Medium Enterprises Loan?

Now comes the main task, which is applying for an SME loan. The first step is to write and send an application to the loan lender. Once they accept your loan proposal, your work is almost done. At this time, you will have to perform all the formalities. For instance, submit your id proof, all the documents, and stuff. After the final approval, the authority will call you for a meeting. In the meeting, they will discuss all other essential factors which need to enquire. Consequently, you are approved for a small-medium enterprises loan.

Conclusion

Please do not give it a second thought. Go and apply for a small-medium enterprises loan. Keep all the documents and important papers with yourself. See if it is arrayed because it might create a buzz at the end moment. We hope your business would excel in the field with all these detailed analyses.

The last thing you want to do when starting a business is waste money you don’t have. Due to financial pressures, many self-employed people and small business owners consider accountant central coast to be an unnecessary expense, assuming that they should draw out and file the appropriate documentation themselves.

However, failing to hire an accountant may be a big expense.

Accountants can do a lot more than just fill out forms for growing companies; they can give you professional advice and facts, assist you in growing your company, keep you out of trouble and save a huge amount of your money from taxes.

Hiring accountants for growing companies is any startup will benefit from the services of an accountant. There are the visible ones, like handling piles of papers and breaking through the red tape encountered by new companies, but that’s not it. Other than simply balancing the accounts is what a competent accountant can do.

Here are a couple of the advantages you and your company will enjoy:

It will save you time

Your time is your capital as a company owner. Hiring an accountant frees up time for you to concentrate on your business. Comparing the number of hours to the expense of an accountant is a good rule of thumb. If you spend $50 per hour because your accountant charges a monthly fee, it’s well-spent money and it’s uncertain that you’ll be competent to accomplish any of your monthly accounting tasks in one hour.

You’ll get access to a highly classified resource of knowledge

The taxation structure is generally designed to reward companies, not people because businesses are the ones that create jobs. In addition, the tax structure is very confusing. So, even though you set up a company, you won’t be able to enjoy the tax benefits if you won’t be having an accountant for the growth of companies.

The taxation system often changes periodically, so even though you think you understand something now, it may be changed next year. Your accountant is familiar with the taxation system and remains up to speed on updates, so you’ll get the most out of it.

You will receive assistance in expanding your company

For any and all businessmen, expanding the company is a top concern. Your company is your child, and this will influence your objectivity. Your accountant will look at your company objectively and provide you with practical guidance about how to expand it. When you’re ready to expand your business, your accountant can be a valuable resource in providing guidance and assisting you with the operation.

If you’ve reached the point that recruiting staff is a good idea, the accountant could help you to find the suitable people as well it proves the importance of accountants for the growing companies.

It’ll Save your expenses

Writing out documents wrongly or failing to grasp current laws could result in a fine, which will consume your earnings unnecessarily. Not just that, but accountants can assist you in lowering one’s taxes by using any legal advantages available to your company.