Knowing Your Taxes | Starting Your Business

In Nigeria, all persons in employment – individuals who own a business, non-residents who derive income from Nigeria as well as companies that operate in the country – are liable to pay tax. Tax remittance will be a key aspect of your business compliance obligations and understanding the tax system in Nigeria and your state of residence will be important for the success of your business.

It is important for you to know that some taxes are payable to the federal government through the Federal Inland Revenue Service (FIRS), while others are through the state or local government.

Here is a list of taxes you should be aware of before you start your business.

Companies Income Tax (CIT)

Companies Income Tax (CIT) is a tax on the profits of incorporated entities in Nigeria. It also includes the tax on the profits of non-resident companies carrying on business in Nigeria. The tax is paid by public limited liability companies, registered ventures and partnerships.

CIT is administered and collected by the Federal Inland Revenue Service (FIRS) and contributes significantly to the revenue profile of the service.

In filing for CIT, audited financial statements are statutorily required. This requires the services of external auditors to prepare and/or certify the accounts to be submitted.

Stamp Duty Tax

Stamp duty is tax paid to the federal or state governments on documents such as conveyances on sale, bills of exchange, promissory notes, agreements, contracts or even documents such as letters and certificates of admission, instruments of apprenticeship, insurance policies, etc.

You will also be required to pay this tax when registering your company. The legal effect of a document which is duly stamped according to S.19 of the Stamp Duties Act is basically that it will be admissible as evidence in a court of Law.

The federal government has the sole authority to impose charge and collect stamp duties in respect of documents relating to matters between a company and an individual, group or body of individuals. While, the state government, on the other hand, has authority to collect stamp duty in respect of documents executed between individuals or persons at such rates imposed or agreed with the federal government.

Education Tax

This is  tax chargeable on all companies registered in Nigeria from chargeable profits as contribution to the Education Tax Fund. All registered companies in Nigeria are required to pay a percentage of their assessable profit into an Education Tax Fund. This tax is charged at 2% of chargeable profits.

Personal Income Tax

This is taxed charged on incomes of persons (which covers individuals, sole proprietorships, communities and families). If you are going to start any type of business, you shall pay tax for each year of assessment of the aggregate amount from every source of your income for the year. This includes profits from your trade or business.

You will be required to register with the State Board Internal Revenue to obtain a Tax Identification Number (TIN) or Tax Payer ID which will enable you remit this tax.

A TIN is an identification number for the person which is used by the Internal Revenue Service in the administration of Tax. A TIN must be furnished on returns, statement and other tax related documents.

Pay As You Earn (PAYE)

If you have staff working for you, they will be required to pay Personal Income Tax through the PAYE system. Under this system, you as the employer will deduct the prescribed tax from your workers’ monthly  salaries and pay directly to the Internal Revenue Service through designated banks on behalf of the employee.

The State Board of Internal Revenue and FIRS collect PAYE.

Value Added Tax (VAT)

All small and big businesses that deal with taxable products or services in Nigeria have to pay VAT. It is a consumption tax payable on goods and services consumed by any person, whether government agencies, businesses or individuals. It can also be defined as a tax on spending/consumption levied at every stage of a transaction but eventually borne by the final consumer of such goods and services. It is levied at the rate of 5%.

The VAT system is invoice based and not cash based.

VAT is primarily collected by the seller when any taxable item or service is sold. The seller then nets off the VAT and submits it to FIRS through a designated bank. The bank will immediately issue an e-ticket as evidence of payment.

To collect your original e-receipt, you will be required to present the e-ticket and bank teller as evidence of payment at the tax office.

Withholding Tax (WHT)

This is an advance and indirect source of taxation deducted at source from the invoices of the tax payer. Its main purpose is to capture as many tax payers that may have evaded tax into the tax net.

If your business or company supplies goods or services to another company an invoice will usually be issued as evidence of a transaction. The purchaser is also obligated to obtain evidence of remittance in the form of a WHT credit note on behalf of a supplier.

A WHT credit note will include the following:

1. Credit Number
2. The name of the tax payer (Purchaser of your goods or services who deducted the tax and remitted on your behalf)
3. The name of the beneficiary (Your company or business)
4. The deal and nature of the transaction
5. WHT rates are usually between 5-10%, depending on the type of transaction. Also, the collecting authority for this tax is the FIRS or State Inland Revenue Service.

Capital Gains Tax

Capital Gains Tax (CGT) is a tax on the profit obtained from the disposal or exchange of certain kinds of assets.

All companies registered in Nigeria that earn from the exchange or disposal of any form of assets whether in Nigeria or outside are liable to CGT.

CGT is 10% of the profits from sales of the qualifying assets.

Hotel Occupancy and Restaurants Consumption Tax

If you decide to go into the hotel or restaurant business or you operate an event centre, you should be aware of this tax. Any such establishment is expected to pay 5% tax on goods and services consumed by customers.

This tax is paid only to the state government.

Conclusion

It is advisable for you to hire a tax consultant/accountant who understands all the tax requirements to help you correctly prepare returns and calculate payments. This will save you the stress of dealing with tax authorities and paying huge sums in penalties which will may erode your business profit or run the risk of the tax authorities shutting down your business.

Entrepreneurship fund: Bank of Industry opens portal for corps members

The Bank of Industry (BoI) has commenced the third batch of its Graduate Entrepreneurship Fund (GEF) programme, targeted at serving members of National Youth Service Corps (NYSC) only. To this end, the bank has opened a portal, www.boi.ng/gef, for NYSC members to apply for the fund. The portal which will open for three weeks closes on 7th February 2018.

The GEF programme encourages business idea competition among entrepreneurial youths. BoI stated: “Only top 1000 candidates will be selected to participate   in a four day training to be held in 7 centres across all geopolitical zones of Nigeria. “After the training, candidates will be required to develop a more detailed business plan in line with the lessons learnt at the training and their business plan will be evaluated for funding in line with the GEF product program.” The GEF scheme is the BoI’s first youth programme which was launched in October, 2015 and is implemented by the bank in partnership with the NYSC Directorate. The initiative is specifically targeted at youths undergoing the mandatory one year national service programme. The aim is to change the job-seeking mindset of Nigerian youths to entrepreneurship and self-reliance by encouraging them to develop skills for self-employment and to contribute to the accelerated growth of the national economy.

Again, visit www.boi.ng/gef to apply.

MFBs Will Follow Macroeconomic Trend In 2018 — CEOs

Chief Executives of Microfinance Banks (MFBs) have projected that the performance of the subsector in 2018 will follow the trend of macroeconomic indices during the year. Speaking in different interviews with Financial Vanguard, they expressed optimism about improved performance notwithstanding the numerous challenges confronting the subsector.

Managing Director, Supreme Microfinance Bank, Mr. Jide Aremo, stated: “I believe that we have seen the government in power doing a lot of things, but these things are not coming out. I want to believe that as these things are coming out, more money would be pumped into the economy. It would reflate the economy because salary earners would earn more and small savers would be able to do some things. Our loan portfolio would grow and the bad loan portfolio would reduce and that would be better for the industry in the economy.”

Managing Director, NPF Microfinance Bank Mr. Akin Lawal, added: “Macroeconomic indices, generally, determine where we go. If the MPR is 14 percent, inflation rate is about 17 percent and we have poor power supply and a weak purchasing power, then, the next thing to do as an institution is to know how to study and see how you can operate successfully even with all those challenges in place. You are not an island to yourself, economic indices determine how you flow.” Lawal stated further “One thing I must say is that this economy is throwing more people into the poverty level, which means the customer base of microfinance is expanding. But then, you don’t want to lend to indigent but to people who are economically active and are ready to do something. We have hope. The hope is that Nigeria has come out of recession where more people are going into export and the non-oil export is on the increase even though it is not up to the point we expected but it is growing. With that, there is hope that we can improve on what we have done in 2017. My take is that we need to study the economic indices and see how we can operate successfully in spite of the country and its challenges.”

On his part, Managing Director, Accion Microfinance Bank, Mr. Taiwo Joda, said: “For the microfinance, we are a very strong member of the Nigerian Association of Microfinance Banks, NAMB, and we have consistently been a strong advocate of financial inclusion. It would amaze you to know that over 80 percent of eligible Nigerians are excluded. What we have done is to look at ways of making it easier for these people to open account. We are also representing the NAMB to engage the Central Bank of Nigeria, CBN, and other regulatory authorities to ensure that this sector is not left out of things. When we talk about people who are financially excluded, we also look at those with physical disabilities.

“For us as a bank, in the New Year, we are setting out to serve our customers better. The first thing is to multiply available channels and access through which our customers can receive services through technology. We are going to deploy a lot of technological changes so that they can be able to use their USSD code, even though we have one but we are going to make the digit easier to recall by introducing a new USSD code. All our customers would be able to do business on their internet platform, transfer and receive money wherever they are in Nigeria and outside the country because we realize that we also serve a market that go as far as China to buy products to sell here in Nigeria.

We would be giving them platform that makes it easy for them to access their fund. They don’t need to go with plenty amount of cash to do business and fall prey of hoodlums and robbers on the road. We would be focusing on geographical expansion. This year alone we would be opening 80 more branches so as to reach those that have been financially excluded from access to loan and other financial services.

Source: Vanguard News

Improving Your Relationship With Money

The turning of the calendar year is traditionally a time when you feel inspired by the possibilities of a new start, a new beginning, and the onset of positive change. It can be a time that is empowering, energetic and life supporting; it can forever alter the trajectory towards a more successful money life.

But like any change, you want to consider the good, the bad, the ugly, and importantly, the challenges that transitions can bring.

You can conquer your transition by distilling it down to key essential components:

1. As Simon Sinek says, “Start with Why”. Understand not only why change is beneficial to your life but also that the outcomes are so powerful and important that no other choice remains. Begin with a declaration.

For example: I must become debt-free within the next 12 months; or

I must accumulate X Naira to go towards a down payment on a home, or

We must open and fund a school savings program for my child by February 1.

You get the drill; it’s about why, in your heart and mind, something must occur. These are known as your “Money Musts”.

2. The second step is to get a handle on where you are right now. If your “must” is to pay off your credit cards, then you have to know exactly how much money you owe, to whom, and how much money you have to reduce the debt. Using credit card debt as the example, you might need to tighten your belt and alter some of your spending decisions to a greater or lesser degree. If paying off the cards is so important, ask yourself what you’re willing to do to make that happen!

The same question applies for savings and investment goals. If you cannot make more money, the cash flow needs to come out of your current spending and shifts need to be made in your spending habits.

3. Look back to look forward. Your money beliefs, habits and behavior typically stems from your childhood. What you heard, synthesized, and adopted from your early life becomes your “normal” in adulthood. However, just because this is what you grew up believing doesn’t make it necessarily appropriate or beneficial for you today. Consider that those beliefs, habits and behaviors might not support your adult values -
or your partner’s, if you have one. If that’s true for you, it’s time to rethink your beliefs, rewire your habits and realign your behavior to actuate your life today and your future goals.

4. Anchor past successes. Can you remember a time when you made a successful change? It doesn’t matter how small it might seem, but if you can recall what you did and how your mindset impacted the outcome, it can be a powerful tool in working towards success on your New Year’s resolution. Remember the feeling you had when you accomplished your goal; and use that sentiment to commit and motivate you to make future positive changes and money habits.

5. Consider the roadblocks. If you’ve ever been on a diet, you know that somewhere between the first day of eating sensibly and you reaching your goal, there will be a piece of chocolate cake, dish of ice cream, candy bar or bagel that looks you right in the eye and demands you to eat it - tempting you to veer off your track to success. Your ability to get past that “demand” is the difference between success and failure.

These transition periods can be hard to overcome, but if you know it’s coming and manage your expectations so as not to be surprised or off put, they are less difficult to conquer. This is where you need a support system, so that when that part of your brain is telling you to dig into some retail therapy or that delicious looking cookie, you need to be armed with the strength to resist. This is where having friends and professionals around you to help support you is so vital.

Surround yourself with those who have the expertise and the willingness to help support and guide you through the process of getting yourself to where YOU want to go.

6. Small steps rule! Setting up small steps leads to successes and lowers the pain threshold. Small steps are less intimidating and tend to be easier to envision; and thus take action on. If you are currently paying the minimum on the credit card each month, consider the following: pay your bill every time you get paid, not when the bill is due.

Taking this small advanced action step can make a big difference. Find places in your spending that hold less value to you than getting out of debt. Start with the areas of the least pain. For example, set a smaller entertainment budget by, say, N20,000 per month and adding that N20,000 to your payment. Think of the things you can change that won’t kill you, but that will help decrease your debt each pay period.

7. Missteps are common. It’s not uncommon to make mistakes. If you’re changing your eating habits, and one day you fall to the desire for a piece of cake, there is nothing preventing you from starting the next day anew with the understanding that a misstep is not fatal. The same applies to changing your money behaviors. You decide your goals and the road to get there.

8. Appreciate the journey. Celebrate each success Each step forward deserves acknowledgment. The act of focusing on what you did right sets up the next victory. Each dollar you pay off, or dollar that you accumulate, brings you closer to your ultimate goal. Don’t wait to celebrate! Build one victory on top of the other. You deserve it.

Your New Year’s resolution can be the beginning of a new, richer and a more purposeful money life. It requires awareness, action and support to take it from thought to action. I know you can do it!

Credit: Michael F. Kay, Forbes.com

Open-Letter to Employees

Dear Employee,

In the euphoria of New Year 2018, I welcome you to the first working day in the first week of the first month of this year. I understand you are still in the celebration-mode from the Yuletide and holiday season. Hmmm…and you wished the season never ends, but it's time to get back to the work-mode because employers are waiting to get the job done. As a matter of fact, money spent during the celebration season have to be re-couped.

In this year, be smart, be intelligent, increase your skills, focus on your strengths, dwell in your comfort zone because that's where creativity and productivity lies. Be a doer and a supporter in your workplace, embrace challenges, and take intelligent risk. Be loyal. Seek to understand your employer. Be committed to the organisation goals. Be proactive. Run your work-space like you're the CEO. Don't indulge in office politics. Express your concerns to your boss. Be emotionally intelligent - your boss is also human. Work in harmony with other colleagues. And uphold the following values:

Good Behavior

All companies specify what acceptable behavior is, and what is not, when hiring an employee. Many even summarize expected conduct in job descriptions or during the interview process. Behavior guidelines typically address topics, such as harassment, work attire and language. Workers who don’t follow codes of conduct may receive written and verbal warnings, and ultimately be fired.

Integrity

A key component to workplace ethics and behavior is integrity, or being honest and doing the right thing at all times. For example, health care employees who work with mentally or physically challenged patients must possess a high degree of integrity, as those who manage and work primarily with money. Workers with integrity also avoid gossip and sneakiness while on the job.

Accountability

Taking responsibility for your actions is another major factor when it comes to workplace ethics and behavior. That means showing up on scheduled workdays, as well as arriving on time and putting in an honest effort while on the job. Workers who exhibit accountability are honest when things go wrong, then work toward a resolution while remaining professional all the while.

Teamwork

A vital aspect of the workplace is working well with others. That includes everyone from peers to supervisors to customers. While not all employees will always like each other, they do need to set aside their personal or even work-related differences to reach a larger goal. In many instances, those who are not considered “team players” can face demotion or even termination. On the other hand, those who work well with others often can advance on that aspect alone, with teamwork sometimes even outweighing performance.

Commitment

Ethical and behavioral guidelines in the workplace often place a high amount of importance on dedication. Although possessing the necessary skills is essential, a strong work ethic and positive attitude toward the job can carry you a long way. Plus, dedication is often viewed in the business world as “contagious,” meaning employees who give a strong effort can often inspire their co-workers to do the same.

All the best,

Segun-Martins Ogunyemi

CEO, Pro Logic Ideas Consulting.

2018 budget: Facts behind the figures

The key parameters and assumptions adopted for the 2018 Budget of Consolidation as set out in the 2018-2020 Medium Term Expenditure Framework and Fiscal Strategy Paper include crude oil price benchmark of $45 per barrel; oil production estimate of 2.3 million barrels per day; exchange rate of N305/$; inflation rate of 12.4 per cent and real GDP growth of 3.5 per cent. Based on these assumptions and macroeconomic framework, total revenue of N6.607tn is projected to fund aggregate expenditure of N8.612tn resulting in a deficit of N2.005tn (or 1.77 per cent of the GDP) to be financed mainly by domestic and external borrowing.

As the National Assembly gets set to consider the budget proposals presented by President Muhammadu Buhari, an appreciation of the facts behind the figures will help facilitate early passage of the budget and avoid the kind of delay that characterised the 2017 budget. It will be recalled that during the consideration of the 2017 budget proposals, the National Assembly members jerked up the oil price benchmark proposed by the Executive arm from $42.5 per barrel to $44.5 per barrel, an action which took a great deal of time to get the buy-in of the executive.

This time round, the National Assembly will also be faced with the option of increasing the reference oil price above the proposed $45 per barrel. The arguments in favour of an increase appear strong and persuasive and on this score, the lawmakers will most likely get the support of the state governors for obvious reasons: an increase will translate into more money for constituency projects and increased allocations to states and local governments. Also, a higher oil price benchmark will narrow the budget deficit and reduce the size of the borrowing required to finance the deficit.

These arguments are reinforced by the favourable oil price forecasts by reputable international energy agencies such as the US Energy Information Administration which has forecast Brent spot prices to average $56 per barrel in 2018. Similarly, the World Bank expects oil prices to reach an average of $60 per barrel in 2018 from $55 per barrel this year, a reflection of upward pressure on prices from steadily growing demand, output-cut agreements among oil exporters expected to run till March 2018 and supply outages among major exporters like Libya, Nigeria and Venezuela.

However, the fact remains that the international crude oil market is very volatile and so the outlook for oil price remains highly uncertain.  Neither the international energy agencies nor the World Bank foresaw the sudden crash of crude oil price from over $100 per barrel sometime in 2014 to below $30 per barrel only a few months after. The rise in the US stockpiles remains a big threat to upward potential of prices. Data from the Energy Information Administration indicate that the United States crude inventories surged by 2.24 million barrels in the week ending November 3, 2017, the highest in more than three decades. The global investment bank, JP Morgan, expects the US shale production to continue growing through this year and into next year and so has slashed its price projection for Brent crude from $55.50 to $45 per barrel. Only recently, Goldman Sachs cut its Brent price forecast for this year to $55.39 per barrel from its previous estimate of $56.76 per barrel after predicting the return of oil glut at the expiration of the OPEC/non-OPEC deal.

In recognition of this fact, major oil exporters are toeing the cautious path. Bloomberg reports that despite the seeming rebound in oil price, Russia, one of the world’s biggest energy exporters,  has adopted a conservative oil price of $40 per barrel for the country’s 2017- 2019 national expenditure plans because “the Finance Ministry and the Central Bank of Russia want to be ready for and protect themselves against the worst-case scenario”. So, with respect to the oil price, the proposed $45 per barrel should be retained for, as the saying goes, ‘it is better to be conservative and be surprised on the upside than too optimistic and end up disappointed’.

Regarding oil output projection in the 2018 budget proposal, the option of adopting a lower output target presents itself not least because crude oil production has been far below projections in recent times. The two previous annual budgets (2016 budget and the 2017 budget) used 2.2 million barrels per day that was hardly met. As disclosed in the 2018-2020 MTEF, “average oil production fell from 2.04mbpd in February 2016 to 1.52mbpd in August 2016 before rising to 2.2mbpd by June 2017” largely on account of crude oil theft and pipeline leakages due to vandalism which had a negative impact on government revenues from the oil sector.

Nevertheless, it is pertinent to recognise that the oil output target of 2.3 million barrels per day must have been advised considering the fact that one of our own, Mohammad Sanusi Barkindo, is the current Secretary General of the Organisation of the Petroleum Exporting Countries. Nigeria is currently enjoying exemptions from the OPEC/non-OPEC oil output cut and so adopting a lower oil output may jeopardise the country’s chances in future negotiations with the other oil producing nations.

What is more, it is a fact that crude oil production shut-ins resulting from vandalism of oil facilities have been on the decline. For instance, the 2018-2020 MTEF disclosed that “there were 94 pipeline vandalised points in April 2017 compared to the corresponding period of April 2016 which recorded 214 cases”. Further reduction in attacks in oil facilities resulting in oil output disruptions is expected especially in the light of the “carrots” contained in the 2018 budget proposals such as the increase in the capital provision for the Ministry of Niger Delta Affairs and the Niger Delta Development Commission, the Ogoni Clean-Up project, the Amnesty programme as well as the provision for the critical East-West Road. These, alongside progress on the passage of the Petroleum Industry Bill and government’s increased engagement with militants and stakeholders in oil producing communities, will ensure improved stability in the region, reduce uncertainties and promote new private sector investments in the oil sector. Recent reports say a group known as the Niger Delta Avengers has suspended its plan to renew attacks on the nation’s oil installations in the oil-rich region. This is cheering news in support of the oil production estimate in the 2018 budget proposals.

Another budget parameter that will offer a temptation for alteration is the exchange rate of N305 to one US dollar considering that a higher and “more realistic exchange rate” will translate into more money for the three tiers of government. But this will be a dangerous adventure for the economy. Adopting a higher exchange rate will signal government’s intention to devalue the naira, promote speculative attacks on the naira, trigger inflation, complicate monetary policy and forex management for the CBN as well as mess up current efforts at economic recovery. Therefore, an exchange rate of N305/$ should be retained as it is consistent with the government’s Economic Recovery and Growth Plan. Besides, it is a fact that the Central Bank of Nigeria has restored stability to the foreign exchange market (especially since the introduction of the Investor and Exporter Foreign Exchange Window in April 2017), on the back of rising external reserves ($34bn as of October 30, 2017) sufficient to finance several months of imports.

Also considered realistic is the inflation target of 12.4 per cent given the fact that headline inflation has been trending downwards since February 2017 (down from 18.72 per cent in January 2017 to 15.98 per cent in September) due, in part, to improved liquidity in the forex market and stability in exchange rate. New investments in infrastructure and agriculture as contained in the 2018 budget will further moderate inflationary pressure.

Equipped with these facts, therefore, the National Assembly is advised to commence immediately the interrogation of the 2018 budget proposals in order to ensure its early passage.

Source: The Punch

21 Ways to Boost Your Business Bank Account

When cash is tight and bills need to be paid, your first instinct may be to try to get a small business loan of any kind.

But depending on the type of small business financing you’re seeking, you may need strong personal or business credit scores, or sufficient revenues or cash flow. Without them a loan may be out of reach, according to www.forbes.com.

What else can you do? Here are some alternative strategies for improving cash flow quickly and getting more money into your bank account.

Getting paid quickly means you can get money in your account faster and in turn pay your bills on time. Here are some ways to do that:

Collect outstanding invoices: If you’ve been too busy running your business (or drumming up business), you may have any number of clients that owe you money. Set aside some time to dial for naira. If clients are significantly late and won’t commit to a schedule to catch up, you may want to check their business credit reports to see whether they appear to be having financial problems. If there are red flags, you may also need to contact a collection agency or attorney with collections experience.

Factor invoices: Sometimes clients have great credit, but they simply pay slowly; usually because they can. If you do business with reputable clients that take months to pay, you may want to consider factoring some of those invoices. The factoring firm will pay you part of the money you’re owed right away, and you’ll get the rest (minus their fee) when the invoice is paid. In most cases, your client’s business credit history is more important than yours, since they are the ones that will have to make good on the money they owe.

Get to the bank instantly: If you find yourself sitting on cheques because you haven’t had time to get to the bank to deposit them, ask your financial institution about remote deposit. Another option: Request electronic or online payment of invoices so the payment will be directly deposited into your business bank account.

Ask for a bigger deposit: If you provide goods or services before your clients pay for them, consider asking for larger upfront deposits. As an added precaution, check your client’s business credit to make sure they are a good credit risk before you offer them longer to pay.

Tap your business credit card: While paying your credit card bill in full is a great way to avoid interest, there are times when you may need to carry a balance. Credit cards can be a flexible, fast way to borrow in a pinch. Just make sure you factor in the cost of interest, and try to use this strategy only when the cash crunch isn’t likely to drag on too long.

Get terms with vendors/suppliers: The companies you buy your supplies from may be willing to extend terms of 30, 60, 90 days, or even longer. This gives you additional time to pay, and it may be interest-free. (Many times companies will check your business credit before agreeing to extend terms.)

Refinance debt: Do you currently have outstanding debt? Can you negotiate more favourable terms? Perhaps use a zero per cent balance transfer to consolidate credit card debt. Lower payments can give you some breathing room, but be careful you don’t dig the hole deeper with a more expensive longer-term loan.

Pay strategically: Consider setting up automatic payment on important bills so the bills get paid when they are due, but not too far in advance. Keep cash in your pocket as long as possible.

Crowd-fund a new project: If you are trying to launch something new, consider crowd-funding as a way to raise additional funds. You don’t need good credit for most types of crowd-funding, but you do need to be able to tell a compelling story.

Renegotiate your lease: If you are leasing office space that’s simply too expensive, look into renegotiating the lease or subleasing all or some of your space. Depending on the needs of your business, perhaps you can even look into letting some members of your staff work remotely or move into a co-working space temporarily until things improve.

Leaseback equipment: If your business owns valuable equipment free and clear, you may be able to lease it back. This provides you with cash upfront, though you’ll have a lease payment.

Deliver faster: If you get paid on delivery, then perhaps you can find a way to deliver faster. For non-physical products (like services) you may need to build better systems. If you are shipping physical products, a logistics expert or even your shipper may be able to offer help for speeding up delivery without significantly increasing costs.

Sometimes you just need to bring in money as quickly as possible, and that may mean getting creative in your sales strategy.

Offer a discount: If your margins won’t suffer too much, consider offering customers a discount if they pay quickly (or even upfront). You can extend that offer to current customers, new clients, or both.

Hold a sale: A sale may allow you to move more products quickly. Again, be careful though you don’t want to lose money on each sale or get your customers in the habit of thinking that they should always expect a discount, unless that is your normal strategy.

Sell old, excess equipment or inventory: Sometimes you need to hold the business equivalent of a garage sale; get rid of old inventory or equipment you don’t need any more. With this strategy you may not be profitable, but it may be the best way to drum up cash while you offload something that wasn’t going to bring you top dollar in the first place.

Hold a sales contest: Can you offer a special incentive to your sales staff to bring in sales quickly? (Again, with an eye to margins and how those sales may impact your organisation overall.) Maybe other members of your staff who aren’t directly in sales have good ideas too. Consider a company-wide sales sprint with rewards for those who participate if they meet their target.

Offer a referral bonus: Enlist your customers to help you sell your product or service by offering a limited-time referral bonus of some kind if they send new business your way. It could be as simple as a refer-a-friend coupon or as elaborate as a special appreciation event for those who participate.

Raise prices: Sometimes a cash-flow crunch is a sign you are not charging enough. Though raising prices may feel uncomfortable, sometimes it’s the best way to get on financial solid footing. Consider offering your current customers or clients the chance to “stock up” at current prices - another way to bring in some extra cash.

Bundle your product or service: Up-sell to a more expensive price point by bundling products or services into an irresistible deal. If your customers like what you offer, they may be more than happy to spend more, as long as your value proposition is strong.

Do an expense audit: Review your spending carefully, and if you’re not seeing any areas where you can cut back, consider asking an objective third party to take a look.

Tighten the belt temporarily: You don’t want to scare your staff by suddenly cutting out all travel or company-sponsored meals, for example. But at the same time, they would no doubt prefer to keep their jobs and get a pay cheque. Be transparent about the situation and ask them for advice on ways you can tighten the belt for a bit. You can even run a contest for the best ideas and acknowledge staff contributions.