I just got a call from Paypal: “Fasmicro, we have working capital for you”. Yes, Paypal has been asking us to take out a loan. But as I have said many times: “we have the best investors and lenders – customers – and we do not need money”. Today’s call was from a senior person. No luck for him, as we do not need any capital. Our advisory and design business are largely prepaid.
As Paypal pushes, our bank’s online account has a button with this description – You are approved for a loan, click to accept. Then, below is another one, from the U.S. Government. Simply, American financial institutions are doing everything to give us capital with no credit checks – our sales have qualified us!
My mother was a petty trader in Oriendu market in Ovim, and I used to help her in the garri store: great customer service can unleash free working capital. Those who have prepaid for Tekedia Institute Mini-MBA for 5 years are great lenders!
Now, the interesting question: can the Nigerian banks do this to its customers?
No surprises, even Nigerian banks can do same! How? Because lenders usually want to lend to those who don’t need capital or those who are already wealthy.
The same way you are more likely to spend more money when invited to an event by one of your rich friends, as against the small guy who really need that money; that’s if there’s even a chance of honouring the small guy’s invitation, without citing security concerns and other paraphernalia…
Our world is full of head-turning paradoxes, and no vaccine is capable of curing this malady; it’s as old as man.
Just tell PayPal that one Obi here is seriously in need of that loan, then watch how the guy will squeeze his face immediately.
The world only pays attention to those who have already succeeded and are known, so all we can do is to fight to be known.
I think the problem is that there is too much Cash chasing few investment. Your USA Federal Reserve has pumped in above 3 Trillion Dollars since last year into your economy. Another 1.9 Trillion Dollars planned for this year. Your interests rates are negative and yield at all term low. Where will all that money go that is productive. With nearly zero percent Savings rate, it doesn’t make sense to hoard cash due for fear of inflation.
By contrast as you said yesterday, our lot in Nigeria is asking us to devalue our already declining currency. How much cash injection did we get into our economy in dollars terms, since the pandemic. Even as our main stay of the economy is decimated. That is the story of where we are. 5 Trillion Dollars free money versus none in Nigeria. How can Banks in Nigeria lend. Your banks borrow at negative rates and have done so since 2008. Ours as you rightly pointed out borrow at 14 percent APR.
The stage is not the same and the players unequally yoked. Hopefully, one day we will fine. When you are down, the only way is up no matter how long. God Bless Nigeria.
World of wonders!---
1. Advance your career with Tekedia Mini-MBA (Sept 13 – Dec 6, 2021): 140 global faculty, online, self-paced, $140 (or N50,000 naira). Click and register here.
2. Click to join Tekedia Capital Syndicate and own a piece of Africa’s finest startups with a minimum of $10,000 investment.3. Register and join me every Saturday at Business Growth Playbooks w/ Ndubuisi Ekekwe (Sept 4 – Oct 23, 2021), Zoom, 4pm WAT; costs N20,000 or $60.