Economics SSS 1 Third Term

WEEK 11  

Instruments of business finance – Problems of business finance

Performance Objectives

Student should be able to:

1. Identify and explain the instruments of business finance.

Content                       

Problems of business finance in Nigeria

1. Inadequate Collateral Facilities: Adequate collateral facilities greatly decrease risks to those that lenders it which is mostly the banks. Collateral is one of the fixed assets that have a place value. Collateral usually backs up the loan collected from the lenders whenever a company or business is faced with a financial difficulty which will lead them to bankruptcy. On a general note, lenders can only lend seventy-five per cent as its low-to-value share. That is to say, in a condition of a falling market or for protection against depreciation, lenders will not give out beyond #75,000 for any collateral that is.... View More