TNLP

10/10/2020

They had an excellent business plan, great team, highly connected and the was set to be successful. They landed a major contract with a Multinational. They were to provide logistic services with respect to the importation of raw materials. Little did they know that the was going to cause great damage to their Business.

As common place in so many contracts, it was agreed that: “This contract does not create an or relationship between the parties”.

However, in actual fact the role they were to play entailed acting as an agent of the Multinational.

They took a and opened a for the raw materials to be imported. Owing to a significant devaluation of the Naira, the amount they were to repay for the Loan had doubled.

However, the Multinational refused to renegotiate the amount to be paid. Of course, paying back the Loan came with so many challenges. Thus, impeding the growth of the Business.

Always consider the implication of stating in your agreements that an agency relationship does not exist between your Business and parties you enter into agreements with.

Sometimes, an agency relationship should be said to exist.



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09/06/2020

HOW TO REGISTER WITH LAGOS STATE GOVERNMENT TO REOPEN YOUR BUSINESS

The Lagos State Safety Commission (LSSC), the body responsible for coordinating all matters relating to the safety of lives and property of State residents, confirmed that businesses operating restaurants, cinemas, Gyms, event centres, salons, Spas, Bars, Nightclubs etcetera, in Lagos State can commence via its portal, www.lasgsafetyreg.com

Some of the information you will need to complete the registration are:

i. Business Registration number;
ii. Phone number;
iii. Valid email address;
iv. Maximum Capacity the premises can accommodate;
v. Number of Staff;
vi. Number of Conveniences Available;
vii. Pictures showing the entrance, exit, interior, exterior and other parts of the Premises.

Upon submission of the Registration Application, you will receive an Identification Number. The LSSC will contact you to carry out an assessment of the Premises.

Please stay safe as you carry out your business activities.

01/06/2020

24/04/2020

X Limited, a food company, has been receiving notices from different suppliers of its raw materials, stating that as a result of the -19 pandemic and government restrictions, they cannot fulfill their contractual obligations. With this, the business is unable to fulfill its own contractual obligations like loan repayments, rent, salaries, supplies etcetera.

In order to manage its arrangements and losses to the business, it is necessary to do the following:

i. Take stock of all supplier contracts that the may affect and consider their impact on the business and contractual obligations;

ii. Review existing supplier and take note of any potential barriers to a successful claim for non-performance.

iii. Check whether Majeure or can INDEED be relied on as a basis for their non-performance.

iv. Monitor for breaches and take steps to enforce the contract where the obligations of the suppliers cannot be said to be affected by Force Majeure or Frustration. This is necessary to forestall a situation, where waiver of a could be said to have been made.



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15/04/2020

The -19 Pandemic has brought about wide spread disruption of business activities. Thus, it is necessary to take the following steps, to keep your business afloat:

i. Adapt your business plan to the changing circumstances. Consider the possible business opportunities arising from the ;

ii. Take suitable measures to safeguard ;

iii. Review all material and identify any applicable contractual terms like force majeure clauses. Also, seek to reach agreements on possible contractual variations or waivers, to prevent default of existing contracts;

iv. Proactively communicate with with a view to negotiating short-term breathing space;

v. Take benefit of extended periods by the authorities, for filing returns;

vi. Look at the brighter side and have a positive mindset. Battles are first won or lost in your ;

vii. For matters, consider options such as paid or unpaid leave; and,

viii. Stay informed and take benefit of and other funding palliatives.

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14/04/2020

COVID 19 - HOW TO DEAL WITH LOAN REPAYMENTS

While taking out a loan, a lot of businesses did not contemplate a global pandemic. The inability of businesses to carry out their operations, economic downturn, etcetera, are affecting the revenue base of businesses and their ability to service loans. If your business is undergoing this, some of the options that could be explored are:

i. Stay informed and take benefit of palliatives by financial institutions and the government. For instance, GTBank has given a 90-day moratorium on repayment of loans such as food industry credit, fashion industry credit and Quick credit for Business;

ii. Speak with your Lender. It is in the interest of your to prevent your business from going insolvent. You could negotiate an extension of the principal repayment date; a break from monthly interest payment; a review of what constitutes an event of default in your agreement;

iii. Consider refinancing the loan. Where your lender is not willing to assist you, you can take another loan from a different lender and use that to repay the existing loan. However, ensure that you are capable of meeting the terms of the new loan, to avoid further challenges.

11/04/2020

COVID-19 LEGAL RESOURCE HUB

Even as we all navigate an uncharted path, as a result of the -19 Pandemic, we remain committed to the wellbeing and sustainability of your .

We have launched a Covid-19 Legal Resource Hub. This is an avenue to provide you with resources that will help you manage the legal obligations of your business at this time.

Please watch out for this space.

21/02/2020

HOW TO GET YOUR BUSINESS OUT OF DEBT

Your business can get out of by applying the following tips:

i. Know exactly what you owe. If the debt is with a institution, you can do a forensic audit of your statements.

ii. Have your debt reviewed to ascertain what your actual are.

iii. Prioritize your debts. Determine the order of priority for debt payment.

iv. Reduce expenses.

v. Seek to renegotiate/restructure your payment terms.

vi. Recover debts owed to you. This will help you repay your own debts.

vii. Provide good value and service to your clients/customers, in order to increase your income.

18/02/2020

Is it possible to start a business without debt?

Yes.

Start with what you have.

What gifts, talents, relationships, goodwill and resources do you have?

Start with them and watch your empire grow.

Focus on sales and reduce expenses.

Provide good value and service to your clients/customers.

You will not be dealing with the burden of debt, when you should be concentrating on growing your business.

You can start your business without Debt.

06/02/2020

5 QUESTIONS TO ASK YOURSELF BEFORE CHOOSING TO FINANCE YOUR BUSINESS WITH DEBT

With the closure of the land in Nigeria, Mike (not real name) who has never reared a chicken successfully, started a poultry business. Using his father’s title documents, he secured a . He made great sales but his bank account was not better for it.

2 months down the line, his lender notified him that the principal and for the month had become due, as contained in the loan Agreement. He thought he had a moratorium of 4 months.

That was the beginning of his series of sleepless nights and resultant health defects.

Irrespective of the nature of your business, please ask yourself the following questions before signing a Loan Agreement:

i. Am I using the loan to acquire fixed assets or for operating cost? With fixed assets, loan repayment could be difficult.

ii. What kind of customers/clients do I have or am I likely to have? Customers that will not pay for your goods/services promptly will make debt servicing difficult.

iii. What is the stage of my business. Have I tested the waters?

iv. How well do I know the business?

v. Are the terms of the Loan Agreement good for my type of business?

01/02/2020

Imagine running a where you are not owed revenue by your clients and your business is not servicing . Sure, this will be bliss! This month we will be discussing how your business can collect all its receivables and stay debt free. Please come on board as we discuss, dissect, analyze and advise you on this menace that has incapacitated so many businesses.

Cheers to a great month!