How To Start A Podcast: A Step By Step Guide

September 19, 2020

Podcasts have exploded in recent years and are now more popular than ever. There are thousands of podcasts on platforms such as Spotify, Soundcloud, Itunes, Google etc. Starting a podcast can help build your business and create loyal customers, but at the same time it can be totally confusing. With the help of podcasting tutorials and our expertise in this area we can together work towards reaching your goal. Below we share 5 tips for you on how to start your podcast and make it a success. If you need more tips, Libsyn has you covered.

1. Come up with a concept

Think about what topics your podcast is going to discuss to interest your target audience. Make it clear with a great title and podcast description that speaks to your audience (don’t forget to use SEOs here!) Decide what your format is going to be, length of each episode and at what frequency your podcast is going to launch. Once a week can be a huge commitment, but it is possible with the help of podcast tutorials and effort.

2. Design artwork and create your brand

Beautiful cover art will be sure to attract more listeners. Have a look at other podcasts and see what catches your eye. It might be worth investing a little bit of money to hire a professional. Whether you do, or design it yourself it is important to have attractive looking cover art as it will make your listeners recognize and trust your brand. It is the first thing your listeners will see when scrolling through directories.

3. Find influential guests in your niche to interview

Don’t be afraid to reach out to other people within your niche. Having an influential person within your specific niche as a guest in your podcast will ensure your podcast reaches more listeners. By networking and collaborating with other fellow podcasters and making guest appearances on eachothers shows you both will benefit from an increase in listeners.

4. Prepare, record and edit your audio files

This will require a rode microphone, editing software and a computer. You need a decent microphone but other than that recording your podcast doesn’t require much technical equipment. Be prepared but don’t just follow a script, be interesting and authentic. A successful podcast lets your listeners get to know you.

5. Ready for launch

Spread the word! Publish your podcast on various different platforms and promote your podcast everywhere. Tell your followers on social media, announce the launch in advance to your business network, have it linked on your website. You want to build up an audience before your first episode has launched. SoundCloud is an under-rated platform when it comes to podcasting. If you do stream your podcast there, you can also buy Soundcloud plays. Try to be continuous with your podcast, for example that you release a new episode every Friday, so your listeners will know when to come back to it!

Of course, there is more to starting and building a successful podcast but these are the first basic steps to take. If you do it right and implement podcast tutorials, a successful podcast is a fantastic opportunity to create a relationship and trust between you and your customers. It’s a highly cost effective way to make business!

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Dr Thomson Mpinganjira’s FDH Financial Holdings Reports Massive Profit Growth

September 19, 2020

FDH Financial Holdings posted after-tax profits of MK4.96 billion for the first half of 2019, compared with MK1.38 billion for the same period in the previous year.

The increase is attributed in part to the continued profitability of FDH Bank, an FDH Financial Holdings subsidiary company which posted after-tax profits of MK3.35 billion for the first half of 2019.

First Discount House, FDH Bank’s sister company, registered after-tax profits of MK1.19 billion for the same period, marking a significant increase on profits recorded for the same period in 2018.

Despite improved overall performance of both FDH Bank and First Discount House throughout 2019, net interest income remained flat compared with 2018, despite both companies growing their asset books. This was attributed to a drop in monetary policy triggering falls in lending rates, coupled with a sharp decline in Treasury Bill rates. However, non-interest income increased by 74%.

In a company statement, FDH Financial holdings reported that the organisation’s total assets had increased from 37% since June 2018, mainly because of the company’s drive to increase its asset book whilst concurrently diversifying its portfolio.

The statement revealed that, moving forward, FDH Financial Holdings expects the economic environment to remain stable, notwithstanding the elections, with inflation averaging at somewhere in the region of 9%. FDH Financial Holdings also predicted that the exchange rate between the Malawian kwacha and US dollar would remain stable for the remainder of 2019.

FDH Financial Holdings reported further growth for the latter half of 2019, recording MK11.3 billion in profits, representing an increase of 44%. Again, the holding company’s performance was bolstered by revenue increases generated by its subsidiary FDH Bank.

In a statement released in February 2020, FDH Financial Holdings revealed that its net interest income increased by 49%, mainly due to increases in interest earning assets. Non-interest income also increased by 34%. Total assets grew by 26% over the same period, mainly triggered by growth in loans and advances, government securities, and growth in plant, equipment, property and other assets driven by group investment in digital products.

About FDH Financial Holdings and Founder Dr Thomson Mpinganjira

FDH Financial Holdings is a Malawian holding company that consists of four subsidiaries trading within the financial services sector, namely:

FDH Bank
First Discount House
FDH Money Bureau
FDH Stockbrokers

Dr Thomson Mpinganjira, a graduate of the University of Malawi and a chartered accountant by training, founded FDH Financial Holdings and all four subsidiary companies.

After working with renowned multinational company Deloitte & Touche, as well as accumulating experience at Blantyre Printing and Publishing Group, Mandela and the National Bank of Malawi, Thomson Mpinganjira seized the opportunity to become Malawi’s first stockbroker, heading Stockbrokers Malawi Limited and establishing the Malawi Stock Exchange. He presided as CEO until 2002, when he left to establish First Discount House.

Starting with a workforce of just nine employees, FDH Financial Holdings today employs more than 1,000 workers. Dr Thomson Mpinganjira has earned a reputation for championing employee welfare, with FDH Financial Holdings operating a comprehensive health insurance scheme for company employees, their spouses and their children.

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Am I Eligible for a PI Settlement Loan?

September 18, 2020

If you’ve been injured and it wasn’t your fault, you will probably end up being involved in a lawsuit. The accident might have caused you lifelong injuries, changing your way of life. Or, it might have put you out of work for a while, preventing you from earning money in that period.

Sometimes, people struggle to make ends meet during their lawsuit. This can be an additional pressure during a stressful time. Luckily, some companies offer PI settlement loans, which can cover any expenses during the case. But are you eligible? Here are some of the scenarios in which you might be able to get a PI settlement loan.

Slip and fall

A slip and fall accident occurs when you fall somewhere due to negligence. For example, you might experience a slip and fall in a café because water has been left on the floor unattended. This should have been cleaned up by a member of staff or should have a hazard sign near it. If your injury has put you out of work, you may be eligible for a PI settlement loan.

Medical malpractice

Medical malpractice occurs when a medical healthcare professional deviates from the standards of their profession, causing injury or illness to a patient. For example, you may experience medical malpractice if you have a wrongful diagnosis due to incorrect testing or health checks. Healthcare professionals are supposed to put the needs of their patients first and outline any risks before a procedure. If this hasn’t happened and you have a medical malpractice case, you may be eligible for a PI settlement loan.

Workplace injury

Injuries can happen in workplaces at any time. But they shouldn’t. If your workplace injury has occurred due to negligence, you may be eligible for a PI settlement loan. For example, perhaps cables were left hanging loosely in your office and you tripped. Or perhaps a slip hazard wasn’t correctly signed.

Construction accident

Construction sites can be dangerous places to be. There are lots of hazards including dangerous machinery and loose materials. Because of this, no one should be able to wander onto a construction site. They should be properly sign posted and impossible to enter without permission. If you have experienced an injury on a construction site because a hazard wasn’t properly signposted, you may be eligible for a PI settlement loan. This is also the case for construction workers when employers haven’t adhered to the correct health and safety procedures.

Dog bites

You could also be eligible for a PI settlement loan if you have been injured from a dog bite. Dangerous animals should always be kept on leads and shouldn’t be near children. Speak to your attorney for more information.

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How Reviews Impact Your Sales

September 18, 2020

There is no getting around the fact that reviews do impact purchase decisions. About 82% of consumers read digital reviews before taking buying decision. Therefore, reviews are considered the most significant social evidence, showing customers are rooting for you and like to do business with you whenever the need arises.

Let us take a sneak peek in the statistical data of different studies mentioned below: Numbers will open your eyes that reviews make a difference and have a clear impact on sales.

The availability of reviews can increase conversion by 270%

Shoppers are more likely to purchase your products if a good number of reviews are shown on your business site. Surprising yet correct, conversion rates are expected to increase by as much as 270% once a business begins displaying reviews. To put it another way, the purchase chances for a product with at least five reviews are 270% higher in contrast to a commodity that is unable to get feedback. To increase online reviews, consider Google Review QR Code and make sure to generate a QR code, which allows your customers to provide quick and accurate feedback.

88% of customers trust online reviews

Another survey at BrightLocal claims that 88% of consumers emphasize analyzing before recommending a product or service. One thing to remember here is that the more genuine, honest, and high-quality a review is, the more a customer will trust it. However, fake and paid-reviews are likely to turn customers off your business.

One negative review can cost you, 30 customers

One research findings depict that a business is more likely to enjoy a 5 to 9 percent increase in its revenue on average if there is a one-star increase on Yelp’s ratings. On the other hand, one negative customer feedback can cost your business about 30 customers. That is a big no-no! One way to help get new reviews is to use a Google review management software that sends all the 5 star customer feedback right to your Google page!

It is an obvious fact that people would hesitate to shop from a business if it has negative reviews. However, that is not to say that your website ratings should be a total 5-star. That would look inauthentic and ‘too good to be true’. Commodities ranging from 4.7 to 5.0 range are less likely to be bought than those in the 4.2 to 4.7 range.

Reviews generate an average 18% increase in sales

People witnessing a myriad of positive customer feedback on your products are likely to develop more trust, which can lead to higher sales. Having greater confidence and trust in business makes a customer shop more from you and is also expected to come back for further purchases. As per a research study, customer reviews produce an average of 18% uplift in sales. Your strong brand’s credibility and higher rankings drive extended sales revenue because of an increment in conversion rate, visitor return rate, and average order size. For review generation software you can check Rep.co

Customers read an average of 10 reviews to decide on a product

Customers now feel it almost necessary to read a considerable number of reviews before jumping to a purchase decision. Research has shown that an average of 10 reviews are enough to make customers believe that a business is authentic and credible, and they can proceed to make a purchase. In other words, an average customer reads ten reviews before they feel it right to do business with a company.

How you can monitor reviews about your business

The numbers mentioned above have clearly explained the importance of reviews in increasing your sales. Now, the important thing is to monitor your customer reviews from time to time. To take your business up a notch, you need to use some of the practical and reliable business reviews management tools. Google Alerts, Reputology, and ReviewTracker are a few examples through which you can track reviews and manage your online reputation.

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4 Things You Need to Build a Supplement Brand

September 18, 2020

Do you have dreams of building your own brand or your own company from the ground up? Are you the entrepreneurial type that isn’t scared off by a challenge – in fact, a challenge only prompts you to work harder? Now, let’s take it one step further. Maybe you’ve decided that the industry you want to be part of is the health and wellness industry and you plan on creating your own supplement brand.

There’s no doubt that this industry can be a lucrative one, but it can also be highly volatile and competitive. That’s exactly why you want to enter into the process as prepared as possible. So, here are four things you need to build a successful supplement brand.

What Kind of Supplement(s) Will You Sell?

The first step will be to consider the supplement you plan to sell. Will it be just one supplement, or will you have a line-up of many? Will you use private label supplements dropship companies or produce your own products? Will you keep it basic or get into blends, even offering proprietary blends that could give you a leg up on the competition?

If you’re having a tough time figuring out what supplements to sell, you can start to think of it in terms of what healthy issue, deficiency, or gap in the diet are you looking to make up for. There has to be a need in the market for your product, and preferably, little competition when it comes to your specific item.

Who is Your Target Market?

This goes hand-in-hand with what the item you plan to sell is. You can’t determine what you’ll sell without also determining who your target market is. This should require market research that will give you a better idea on the demographics, such as the age group most interested in your product, their location, gender, marital status, age, education, and so forth.

You want to learn as much as possible about your potential customers so that you can craft an effective marketing plan.

Set Up the Manufacturing Process

Now that you have identified what it is you’re selling, you need to figure out how you will get that end product to them. This means it’s time to look into the manufacturing and production process or simply contact supplement manufacturers Australia.

You’ll need to start thinking about how you plan to source raw materials, how you will package them into capsule form (if that is the delivery system), what kind of production facility you’ll need, shipping, hiring staff, costs, production schedule, the list goes on and on. Even something simple like the capsule form you decide to use can be more confusing than you thought. You could be dealing with five different types of capsules trying to figure out which is the best one.

The fact is, that without an organized and operational manufacturing process, you don’t have a product to sell, so this step requires plenty of thought and planning.

How Will You Market Your Supplement Brand?

Then there is the marketing angle of your new supplement brand. Just because you have what you consider an exciting new product, it doesn’t guarantee success. You’re going to need a very robust marketing plan that builds interest in the product, and buzz, potentially before it even arrives.

Typically, a digital marketing plan is the way to go nowadays, as it offers the highest return on investment. You can reach a maximum sized audience at little to no cost to the company.

Organize your shipping logistics and order fulfillment

Unfortunately, many sellers underprice their supplement products to compensate for shipping costs- which lowers their profit margins and hurts their businesses. Arrange your shipping logistics in the way that will allow you to boost sales and increase profits. Consider updating your shipping prices to include your handling costs. You can also include packaging materials in your pricing so that customers can pack their items themselves. Alternatively, you can outsource everything to a company that specializes in supplement fulfillment for SMEs, reduce your costs and focus on other aspects of running your business. You must also choose a logistics provider that meets your standards and has the right experience levels to manage your orders. When choosing a shipping method, consider speed, customer service, transportation costs, storage and handling time and risk factors such as weather and customs delays.

Success Can Be Yours

So, what’s the key to success when it comes to building a supplement brand? It really comes down to proper planning, thinking about every potential scenario, and of course, offering consumers a unique product that fills a demand.

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GIS in Finance: The Future of Banking Analytics

September 17, 2020

Financial services and banking in particular are facing unique challenges. To begin with, banking became an important component of financial globalization. Multinational enterprises explore the rapidly growing emerging markets which place new demands on international banks. Another important aspect is the pressure to evolve the business models and shift to decentralized structures. How do banks cope with this trend of globalization? By taking their banking analytics to the next level. That’s where geographic information systems (GIS) are becoming increasingly helpful.

GIS interprets and makes the geographic data actionable so that finance professionals can easily capture the data needed for their specific banking analytics projects. To make the task easier, GIS systems make use of the publicly available geographic data, since many countries make GIS datasets accessible for use. This opens a whole new scope of possibilities for using GIS in finance. For example, a business analyst of a certain bank can open a map of Savannah, Georgia, and choose datasets from the U.S. Census Bureau which enable additional layers displaying employment status, income, residential status of residents, and a lot more. What else can you achieve by using GIS systems in finance?

Boost customer analytics

Banking is becoming more personalized and targeted. No longer people are treated as faceless account numbers. GIS software enables financial institutions to recognize their customers as real-life assets that have unique expectations and preferences. Forward-thinking financial organizations can use these insights to develop and introduce new services and products. Armed with geographical analytics financial organizations can assign additional resources to better meet their clients’ expectations.

Gain more timely and accurate market insights

GIS in finance takes customer segmentation to the next level. By merging several layers of data on a single map, GIS-based marketing approaches enable the creation of ultra-targeted personas that have unique financial requirements and preferences. This allows the financial organization to reach a new level of personalization as they are able to offer exactly the finance products and services their customers are lacking. GIS-powered banking analytics ties together service demand and supply to precise geographic locations. For example, the marketing department can create specific marketing programs for each of the segments in a certain branch market area. The content of the campaign should focus on the financial products that are preferred by the customers. This is how GIS delivers the next level of business and marketing intelligence.

Improve performance management

Finance-focused GIS applications help analyze and monitor the performance of bank physical locations and identify strengths and weaknesses, both those of the bank and the competition. Based on the local data, a bank can make a decision on performance improvement and even identify new services that are not offered by competitors.

Enable better asset management

GIS platforms transform the way banks operate, maintain, and upgrade their assets. From mortgaged properties location and cost to online tracking of cash status in bank machines, various layers of geographical data in bank GIS will make asset management cost-efficient and accurate.

Become more close and personal with clients

In their quest to offer the most sought-after financial products for a particular area, be it a new mobile office or a walk-in branch, a new mobile application, or a mortgage product, financial organizations use GIS platforms to precisely match their customer needs.

Financial institutions started adopting GIS and spatial technologies a long time ago. It’s time to take GIS-powered business analytics to a new level. Learn more about how your financial organization benefits from GIS technology.

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10 Vital Steps From Wendy Kirkland On How To Become A Progressive Day Trader

September 17, 2020

Day trading is basically buying and selling financial instruments within one trading day and traders who trade within this time margin with an aim to profit are called speculators.

The difference between normal traders and day traders is that where normal traders mainly look for profit over a longer period, day traders seek profit each day, so they exit positions before the market closes. This way, they can avoid losses and can manage to avoid negative price gaps.

Day traders can track small price changes and if used correctly, they can use it to their advantage. So, what are some of the ways by which you can be a successful day trader?

Here are a few steps that might not guarantee success, but will surely increase your chance of getting a hefty profit and avoid losses –

1. Make Well Thought out Strategies

Day trading requires planned strategies because time is of the essence. Following instinct might provide temporary success but in the long run, it may not get you anywhere.

So, to achieve success, you must have a strategy planned out before trading. For that, make a plan and stick to it, updating the strategy from time to time based on where the trade chart is headed.

2. Assess Yourself Regularly

Your emotion can largely influence your trading capability. It is easy to get swept away by excitement when you get a large profit.

It is also possible to get devastated after a major loss. Assess yourself regularly and keep your emotions at bay. This is what any successful traders would do.

To better assess your knowledge and to test yourself you can also try out the Kirkland Five Star Academy where you will get a comprehensive guide about day trading to make good profits. To learn more about it, check out the Wendy Kirkland Review.

Always remember, the right mindset can lead to the right investment. Unless one is prepared mentally, he/she is likely to suffer from loss more than he/she can cherish profits.

3. Taking Clever And Calculated Risks

In the trading market, there are many opportunities with the chance of landing large profits, but it also comes with the risk of getting a big amount of loss.

This is called a high risk-high reward state. Be clever in taking these risks as taking risk beyond your tolerance can be a huge matter

The reason being the loss not only depletes your capital but also demoralizes you in taking future risks. So, take only what you can manage.

4. Treat Trading Like Your Own Business

In business, there is profit, revenue, loss, capital investments, and so on. Trading has these features too. This is not a job where you get paid for every hour of your work.

Trading needs your time, effort, and to be continuously taken care of so that it can grow bigger day by day, just like any business does. So, always think of yourself as a small business owner while you are conducting any trade, as traders are hardly any different from them.

5. Maintain Your Capital

You must put it in your head that you will not always get a profit. With every victory, there will be a defeat.

It is all a part of the giant trading game everyone is playing. It is up to you how you manage these defeats. To mitigate these losses, you must have a margin amount that will act as a cushion to save you from your fall in the trading game.

So do not chase after risky good trades. If you do want to take the risk, take it for the ones that might show some form of growth in the future.

6. Analyze The Market

Like every other business, there is a steady learning curve that you need to go through to understand how things work.

Become a student of the market, not in a sense that you have to get a degree, but learn and improve your understanding, take advice from successful and trustworthy traders, read books, financial researches, newsletters, and articles.

All of them will help you get a piece of better in-depth knowledge, expand your outlook, and can even enable you to find more opportunities.

7. Know Your Securities

There are plenty of different trading methods to make successful trades. You will have to deal with stocks, futures, forward contracts, mutual funds, and exchange-traded funds.

It is best to learn everything about each of the trading methods as soon as you can.

8. Stay Up To Date With Technology

Technology can have a massive impact on your trades and every trader will try to use any updated technology they can to keep their game up.

The only way you can compete against them is to upgrade your own knowledge about the latest tech.

With the advent of cryptocurrency, blockchain technology, and several other fintech the world of finance has changed drastically.

There are even apps available to track your investments, profit, and loss. This helps you to keep track of every opportunity and stay focused.

9. Practice Virtual Simulations

Before starting their investment, many traders try out and test their strategies on a test account basis with virtual money to see if things would go according to their plan.

One can also test historical data, where someone else has used similar strategies like them and see where their plan has led them.

But to get an even more realistic assessment one needs to keep track of brokerage costs and the subscription fee for various utilities.

10. Start Out Small

Traders need to realize that the trade market is always unpredictable, and anything can happen at any time.

So, it is better to start small and gradually understand the playing field, rather than investing too much at once not knowing anything.

Try out your strategy with these small investments and only raise your stake when you understand what you need to do.

Final Thoughts

You invest your hard-earned money into something which is not guaranteed to give you a profit. But you must keep your head straight as it will be hard to recover from a loss caused by a bad decision that you were not expecting. Traders that want to seek a future here must have the motivation to be ready to learn and adapt to the ever-changing trade market.

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Exploring company closure options due to Covid-19 trade disruption

September 17, 2020

By Jonathan Munnery

The coronavirus pandemic has pushed down pressure on the global economy, tipping unstable businesses into the red and forcing the remainder into recovery mode to battle challenging trading conditions and the unstable future which lies ahead. The unprecedented economic backdrop has forced businesses to adapt to a customer base fluctuating in buyer behaviour, changing public health guidance and increasing social distancing measures. If Covid-19 has pushed your business to its inevitable end following an accumulation of pre-Covid-19 debt and long-term cash flow limitations, you will need to seek a formal insolvency measure.

A licensed insolvency practitioner will be able to advise you on the best route available for your business, depending on whether it is solvent or insolvent. The financial health of your business will determine the route that you will take as if there is a possibility of business rescue, there are routes available which can help spur business recovery. There are established insolvency tests which can determine the level of deterioration caused to the business and to gauge the financial position of outstanding creditors.

What’s the insolvency cash flow and balance sheet test for insolvency?

The cash flow test for insolvency measures if the business has enough capital to fulfil financial commitments and maintain the daily running of the business, such as replenishing stock and paying employees. If the business is cash poor and struggles to provide services due to lack of funds, this is a serious barrier to success as it marks the beginning of company deterioration due to debt built-up, restricting the basic functionality of the business.

If the business has significant upcoming payments and these will likely go unfulfilled following the results from the cash flow test, you will need to assess the value of company assets in order to fulfil these costs. The balance sheet test for insolvency will evaluate the value of company assets and liabilities, as if your business debts outweigh the assets of the business, you will be unable to repay debts and therefore likely to be insolvent.

After carrying out both tests for insolvency, if you cannot meet payment demands when they fall due and your business is not asset-rich, a cash injection or alternative finance facility is unlikely to help the business recover. You will need to explore the closure options available to you as a result of Covid-19 trading disruption weathered by businesses on a global scale.

Cost-efficient voluntary closure due to insolvency

If your business is at the finishing line and no longer has the necessary funds to continue trading, top-up products and maintain employee payments following the enforcement of cost-cutting exercises and stricter credit control measures, opting for a Creditors’ Voluntary Liquidation (CVL) may be the next step of your journey. This route consists of voluntary calling for the liquidation of your business after arriving at the realisation that the business has no prospects of recovery. If your business has realisable assets, creditors can recoup funds following the realisation of assets.

A Creditors’ Voluntary Liquidation consists of appointing a licensed insolvency practitioner to navigate the process following an agreement made between company directors. Shareholders and creditors will be notified of your decision to liquidate the business and the insolvency practitioner will compile a report which analyses the health of the business, outstanding debts and the value of assets, also known as a Statement of Affairs. Upon reaching an agreement from 75% of shareholders, the winding up of the company will begin. After the proceeds realised from assets are distributed amongst creditors, complying with the specified order of repayment to creditors, the company can then be struck off the Companies House register. It’s vital that company directors show no form of preferential treatment to creditors during this process as a failure to do so could result in director disqualification.

Forced liquidation due to creditor pressure

The most common type of company liquidation is compulsory liquidation which is as a result of legal action against the business from creditors in an attempt to recover outstanding funds. If you are in serious arrears, creditors can turn to the court for an order to wind up your business, resulting in the liquidation of your business and then dissolution. A voluntary liquidation route should be pursued before reaching this stage as you have greater flexibility over the time frame and by catching the business in the early stages of financial difficulty, you may be able to rescue the business or achieve a better return for creditors.

In order for a winding up petition to be granted, the creditor must be owed £750 and have waited a minimum of 21 days for the debt to be repaid. To kick start the process, an official receiver will be appointed, also known as a liquidator, who will assess the value of company assets and embark on a selling exercise to generate funds to repay the debts of the business. Any remaining funds left in the business will also be earmarked as repayment to creditors.

The company closure route may have been written on the cards for a host of businesses, months before the arrival of the pandemic which forced them into a faster end. Smaller shopfronts hopeful to generate custom from lunchtime trade and office workers, once soaring financially, may have had their custom entirely eradicated as office working transitioned into home working across the world and only essential shops were allowed to trade as the pandemic swept across the country. To protect the position of your business and reputation as a company director, turning to professional support to explore company closure may help limit liabilities and protect your future goals in the industry.

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About the AuthorJonathan Munnery is a partner at UK Liquidators, UK’s largest provider of voluntary company liquidation services made up of licensed insolvency practitioners and business restructuring specialists. He regularly advises businesses on the brink of collapse as a result of the effects of the coronavirus pandemic, guiding them through their options available.

UK’s wrongful trading rules during the coronavirus pandemic

September 17, 2020

By Jonathan Munnery

As the economy bites down once again as a result of a wave in local lockdowns, a spike in coronavirus cases and fluctuating quarantine travel rules, it’s likely that businesses are due to experience another income drought. The furlough scheme and additional financial support measures are due to taper down in a bid to slowly wean businesses off emergency grants and brace the business for a period of turbulent trading if the economic pressure surrounding the pandemic surges.

As an early response measure to protect healthy businesses directly impacted by Covid-19, wrongful trading provisions were temporarily suspended until the end of September to give businesses which were otherwise strong and viable, the opportunity to seek recovery and facilitate business rescue. The magnitude of risk associated with the spread of the virus resulted in sectors to be forced into a slowdown or even halt trading, leading to businesses to endure prolonged financial decline.

What is Wrongful Trading?

Wrongful trading is when a business continues trading with prior knowledge that the business is insolvent and therefore acting against the best interests of creditors. By continuing trade when knowingly insolvent, you are intentionally worsening the position of the business, accumulating debts and further exposing your business to legal action.

Wrongful trading under the Insolvency Act 1986 requires the company director to seek an insolvency procedure if the business is in serious financial difficulty, unable to fulfil liabilities and experiencing pressure from creditors. As the company director, it is your legal duty to ensure that you are placing the interests of creditors first, protecting their position from further worsening.

What’s the difference between Wrongful Trading and Insolvent Trading?

Insolvent trading is when a business continues trading when it is unable to fulfil liabilities, deteriorating the position of the business and creditors, however, this can be done unintentionally. Wrongful trading is when you are aware that your business is insolvent and therefore unable to meet financial commitments, however, you knowingly continue trading.

There is a subtle difference between wrongful trading and insolvent trading, however, wrongful trading is classed as a serious offence as you are knowingly trading with the knowledge that your business is insolvent and therefore unviable.

What’s are the consequences of Wrongful Trading?

Once the moratorium on wrongful trading ends, if a company director is found guilty of wrongful trading, the consequences are likely to damage your prospects. You could be fined, disqualified as a director for up to 15 years and even be held personally liable for the debts of the business. This is classed as a civil offence which could hinder your reputation as a business owner and place you on a blacklist by suppliers and creditors.

Wrongful trading rules during Covid-19

On 28 March 2020, Business secretary, Alok Sharma, announced an unprecedented change to insolvency rules, including a temporary moratorium on wrongful trading rules applied retrospectively from 1 March 2020 for businesses undergoing a rescue process. This means that businesses which would otherwise fall foul of wrongful trading rules due to Covid-19 pressures would be allowed to continue operating without the threat of impending creditor or legal action.

The moratorium is due to end on 30 September, (correct on publication date), when businesses on the brink are likely to either fall into the red or continue trading after the suspension of liability ends. If businesses continue to struggle after the moratorium ends, it is instrumental to seek specialist advice to avoid an Insolvency Service investigation.

Future of financially distressed businesses after moratorium passes

Once the moratorium passes and government support is pulled, this is likely to open the floodgates to struggling businesses with no cash reserves, emergency funding or financial support. In the first instance, it is vital to seek urgent advice before the business drowns in debt and shuts off access to formal restructuring and rescue measures.

The full scope of the pandemic is yet to be assessed as the UK enters a second phase of local lockdowns and curfews to curb the spread of the virus. It’s vital to take note that a business in severe financial distress is not necessarily irreparable and may be recovered through the likes of a Time to Pay arrangement (TTP). A Time to Pay arrangement gives the business breathing space as it restructures liabilities into affordable instalments. There are formal rescue strategies which can help you open the possibility of negotiating with creditors to revaluate outstanding debt into affordable instalments.

Following the moratorium, businesses on the fence about their future will be required to act fast to avoid falling foul of wrongful trading rules as this is a serious offence. If the business needs a cash injection to stay afloat, there are several finance options which can help the business get back on track. This period of trading difficulty has illustrated the importance of a war chest to provide financial support in the event of turbulent trading, such as during the coronavirus pandemic.

After the moratorium concludes, company directors should watch their step as failing to keep creditors interests as the primary priority could result in being held personally liable for the debts of the business. Your reputation as a company director will hinge on the duties fulfilled, the financial health of the business and seeking professional advice when it is due.

As businesses worldwide prepare to set foot upon the road of recovery, it is vital to assess the viability of the business on an ongoing basis to prevent the health of the business from further escalating negatively. The pandemic has set a backdrop of unexpected twists and turns, further turbulent trading due to the changing landscape of the economy and changing public health guidance due to the coronavirus pandemic.

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About the Author

Jonathan Munnery is a partner at UK Liquidators, specialising in providing company liquidation services to company directors in financial distress. Jon works closely with business owners fighting unmanageable levels of debt, creditor pressure and legal action, guiding how to make a cost-efficient exit and protect creditor interests, more information can be found on the UK Liquidators website.

Is It Safe to Work With a Mobile Notary?

September 16, 2020

Instead of traveling to a notary office, many working professionals prefer to use a mobile notary public and redirect the time saved to handle professional and personal responsibilities. Due to the benefits it offers, more notaries go mobile every year.

Although this transition has increased revenue in many public notaries operations, relying on a mobile notary may pose safety concerns to both the clients and notaries. Although saving time and acquiring convenient notary services is ultimately beneficial for a company in any industry, it’s paramount to prioritize your safety and colleagues’ safety to an equal degree. Ensure you take the necessary precautions before hiring a mobile notary to come to your home or office.

Dangers associated with mobile professionals

It is highly likely that you’re aware of the dangers of meeting and dealing with strangers, so it’s always in your best interest to act with caution. When contemplating hiring a mobile notary, remember that you may encounter potentially untrustworthy individuals in isolated locations. Though initially unsettling, it’s relatively common to welcome an acquaintance into your home, i.e., a new neighbor, a salesperson, a repairman, etc.

In an ideal world, the average homeowner would love to screen everyone that steps into their home thoroughly. Though that isn’t necessarily realistic, you’ll want to make sure you hire a reputable company like this and take your time to gather all the necessary information to make the notarization process run seamlessly.

Safety tips when working with a mobile notary

You’re primarily responsible for your own safety, so ensure you take every precaution when seeking traveling notary services.

Location

Since mobile notaries travel to your location of choice to deliver their services, it’s essential to choose the location carefully to ensure your safety. If you’re uncomfortable with inviting them to your home, you can pick the closest restaurant, library, shop, or another public space when you feel safe. The best notarization site is a public, well-lit place.

Regardless of the location you choose, make sure to inform someone you know, such as a friend or family member, of your whereabouts and how long the errand should take. Coordinate a time where you plan to call or text a loved one following your meeting with the traveling notary. Ensure that you give them the notary public’s address, name, and other fundamental details. Furthermore, check in with your relative or friend when you arrive at the location, either through a text or phone call. You should also schedule times to check-in when handling long assignments.

Time

Although a notary public offers flexible bookings, meaning they can deliver services during times that extend beyond business hours, it’s not advisable to meet with a notary late at night, especially in secluded locations. It’s better to have the documents notarized during the day for safety purposes.

Notarizing for disabled or elderly individuals

An adult caregiver may need to request notarization for the individual in their care, which lends to specific safety problems. Transporting disabled or elderly individuals can be quite challenging based on their health conditions, which may pose additional inconveniences. It may be challenging to move the person around or lug around medical equipment. Therefore, it may be best to hire a mobile notary.

Proper verification is critical for any notarization work. In most cases, a notary ascertains the signer’s identity using some form of ID. However, sometimes, the individuals may not have an ID on hand, especially when dealing with a senior citizen who no longer operates a vehicle. Fortunately, a mobile notary knows how to prove identity in the absence of identification like driver’s licenses.

Adult caregivers may be accused of coercing people in their care with mental or physical issues, especially when dealing with a will. Notarization protects adult caregivers, as a notary public has to assess the signatory’s willingness, ensuring that the person is taking part willingly and is in the right mental capacity to make high-profile decisions.

Choosing the right mobile notary

Your safety and the security of your documents both heavily rely on the notary public you choose. Don’t be in a rush to hire the first traveling notary you encounter. Instead, take the time to gather all the necessary information, including the individual or company’s reputation, information on implemented security measures, and available working hours.

Conclusion

Although it’s better to hire a mobile notary that works outside business hours, make sure you can choose a time that works best for you and protects you against dangerous interactions. Since mobile notaries handle non-public information frequently, you’ll want to verify that these highly-confidently documents are stored securely. Unfortunately, mobile notaries may not have a safe and locked filing cabinet at their disposal since they’re consistently on-the-go. To ensure your documentation remains secure, confirm they’re willing to take necessary precautions to safeguard your information against theft.

Although working with a mobile notary presents some safety risks, you can enjoy its benefits comfortably with proper vetting and safety measures. Besides enforcing your own safety policies, inquire about your company of choice’s policies as well.

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