What is Peer-to-peer lending? Peer-to-peer (P2P) lending is a model that connects borrowers directly with investors through an online platform without the involvement of traditional financial intermediaries such as financial institutions. P2P lending can simply be described as the democratization of finance that offers new opportunities for both parties (the borrowers and lenders). Examples of P2P lending platforms … Read more
What is Cash Crunch? A cash crunch in the context of business is a state of financial strain where a business or company faces a shortage of available cash or liquid assets, which can hinder its ability to meet its operational needs and financial obligations. Factors such as declining sales, mismanagement of cash flows, misappropriation of … Read more
What is passive income? Passive income refers to the earnings an individual derives from a rental property, limited partnership, or other enterprises in which they are not actively involved. Passive is one of the most strategic ways to financial stability, you earn while you sleep. Your money works for you, it generates income for you. … Read more
What are SG&A? Selling, General, and Administrative expenses also known as operating expenses includes all of the costs associated with a company’s daily operations that are not directly linked to the production of goods or services. In simple terms, SG&A are the costs of doing business which include marketing and advertising, rent and utilities, management and administrative salaries, … Read more
What is pocket money? This is an amount of money that is regularly given to children as an allowance by their parents for a specific purpose. Parents give this kind of money to their child for the child’s miscellaneous personal spending. It may seem like a small step, but in actuality, it’s the initial footing on a journey … Read more
What does interest mean? Interest on investment refers to the earnings that you (investor) receive from an investment over time. When you invest, you technically lend your money to a business, government, or financial institution, and in turn, you get interest. In the simplest term, you can think of interest as a reward for allowing your money to work for … Read more
What Are R&D Costs? Research and Development costs are the expenditures incurred by a company in its pursuit of new and improved products, services, or processes. For companies in various sectors, especially those in automobile, technology, pharmaceuticals, and manufacturing, R&D is the lifeblood that fosters innovation and long-term competitiveness. Think of Research and Development expenses as what … Read more
What is Financial Health? A company’s financial health is a term used to describe the state of an organization’s financial affairs. It is a snapshot of the company’s financial strength and stability. When assessing financial health, a variety of factors come into play, including whether a company is thriving, just surviving, or facing minor or severe challenges. … Read more
The term “net worth” has frequently been used especially when discussing the fiscal health of individuals, companies and businesses. This is the concept used to gauge the wealth of Elon Musk, Aliko Dangote, and other billionaires around the world. But how can this concept be translated when it comes to evaluating the net worth of … Read more
Does high revenue mean more profit? Not necessarily. A company could experience a spike in revenue, yet see a decline in profits. Let’s get it right once and for once: a company might witness a rising revenue, but declining profits. How increasing revenue and declining profits happen We already spelt out distinctions between revenue and … Read more