BUSINESS

Why Escrow is the Safer Option for Small and Medium Scale Businesses

Published

3 months ago

Why Escrow is the Safer Option for Small and Medium-Scale Businesses

In the business sector, regardless of the size of business or the volume of transaction, ensuring a secure and reliable transactions is paramount. Small and medium-sized businesses (SMEs) often encounter certain difficulties when it comes to carrying out online transactions. This is because they may not have the same amount of resources and infrastructure as larger companies. This is where the role of escrow services becomes increasingly important.

Small and medium-sized businesses face a significant risk of fraudulent transactions, payment disputes, and other financial challenges that can seriously harm their growth and stability. This is mainly due to their limited resources and tight budgets. Fortunately, there is a time-tested solution that offers a protective shield for SMEs known as escrow. In this article, we’ll look into why using escrow is a safer choice for small and medium-sized businesses.

What is Escrow?

An escrow is a convenient arrangement used by many businesses, in which a trusted third party temporarily holds the assets involved in a transaction. The assets are kept safe in a separate account until both sides fulfill the terms and conditions of the agreement. This setup adds extra protection and security for everyone involved. The main goal of an escrow is to make sure that all parties meet their obligations. It acts as a fair mediator, making sure that the assets are only transferred when all the agreed-upon terms are met.

When it comes to online transactions, it can be challenging to know if you can trust the other person involved. To address this concern, licensed online third-party services offer escrow services to safeguard both buyers and sellers. These services act as intermediaries, ensuring that the transaction proceeds safely without any complications or fraud. Once both parties have fulfilled their obligations as stated in their agreed terms, the online escrow provider completes the transaction by transferring the funds to the seller.

Benefits of Escrow for Small & Medium Scale Businesses

Escrow services can provide several benefits for small and medium-scale businesses. Here are some of the key advantages:

1. Mitigating Financial Risks

For SMEs, every transaction carries a certain level of financial risk. This can be particularly challenging when dealing with new customers or unknown vendors. Escrow services act as a neutral third party, holding funds until both parties fulfill their obligations. By using escrow, SMEs can significantly mitigate the risk of non-payment or non-delivery, ensuring that they receive the agreed-upon payment or goods before releasing the funds. This helps safeguard the financial interests of SMEs and minimizes potential losses.

2. Protecting Against Online Fraud and Scams

The online marketplace can be a breeding ground for fraud and scams, and this can cause serious damage to small and medium-sized businesses. Fake listings, non-delivery of goods, and unauthorized chargebacks are just a few examples of fraudulent activities that SMBs may encounter. Escrow services provide a crucial layer of protection by verifying transactions and ensuring that funds are securely held until the buyer receives and approves the merchandise. This significantly reduces the risk of falling victim to fraudulent schemes and helps SMEs maintain their financial stability.

Establishing Trust with Customers

Building trust is paramount for SMEs seeking to establish a solid reputation in the market. When customers perceive a business as trustworthy, they are more likely to do business with them again and again. By utilizing escrow services, SMEs demonstrate their commitment to secure transactions and customer satisfaction. Customers feel reassured knowing that their payments are held in escrow until they receive the products or services as promised. This trust-building aspect of escrow services can significantly benefit small and medium-scale businesses.

4. Streamlining Transactions and Reducing Administrative Burden

Running an SME often means wearing multiple hats and managing various aspects of the business simultaneously. Escrow services can help alleviate some of the administrative burden associated with financial transactions. By providing a structured and standardized process, escrow services simplify the transaction workflow. SMEs can focus on their core operations while relying on the escrow service to handle the intricacies of payment verification, dispute resolution, and fund release. This streamlining of transactions frees up valuable time and resources for SMEs to focus on growth and innovation.

5. Dispute Resolution

Disputes can arise in any business transaction, and SMEs are not immune to such challenges. Escrow services offer a structured mechanism for resolving disputes, providing a fair and impartial platform for both parties to present their cases. Small and medium-sized enterprises (SMEs) can benefit from using an escrow service to handle disputes more efficiently and affordably. This approach reduces disruptions to business operations and maintains positive relationships with customers and suppliers.

6. Facilitating Business Expansion

Escrow services play a crucial role in facilitating the growth and expansion of SMEs. As businesses expand their customer base and engage in larger transactions, the potential risks also increase. Escrow acts as a safeguard, allowing SMEs to enter into bigger deals with confidence. This financial security encourages SMEs to take calculated risks, explore new opportunities, and expand their operations.

7. International Trade Facilitation

For businesses engaged in international trade, escrow services can be particularly advantageous. They can assist in reducing risks that come with international transactions, like dealing with different currencies, following regulations, and managing shipping processes. Escrow services can provide a secure and efficient mechanism for conducting international business, fostering confidence and reducing uncertainties.

8. Financing Assistance

Escrow services can also support businesses in securing financing or loans. By holding assets or collateral in escrow, businesses can demonstrate their commitment to fulfilling financial obligations, increasing their credibility and improving their chances of obtaining favorable financing terms.

How to Select the Best Escrow Service for your Business

Choosing the right escrow service for your business is crucial to ensure your financial transactions are secure and go smoothly. With numerous options available, it’s important to consider several factors before making your decision. Here are some key factors to consider when selecting an escrow service for your business:

1. Accreditation, Reliability, and Insurance

First and foremost, make sure that the escrow service you choose is properly licensed and accredited. Take some time to carefully look into the information provided and confirm the legitimacy of the company you’ll be dealing with. Additionally, consider the location and licensing of the company. Some countries have stringent standards for granting business licenses, which adds credibility to the service.

2. User-Friendliness

The usability of the escrow service is crucial. If the web interface is confusing and you find yourself unsure of which stage you are at, it becomes difficult to utilize the service effectively. It is essential to understand how the system operates. Opting for a digital escrow service offers the added advantage of conducting all transactions online, eliminating the need to physically submit documents to a bank. This convenience is particularly valuable during the ongoing Covid-19 pandemic, where movement restrictions are prevalent in many regions.

3. Flexibility

Flexibility plays a vital role, especially when engaging in international transactions. Quick and flexible payment options are key to expediting deals. The ability to make payments in your local currency and and foreign currencies will offer significant advantages to your business and broaden your customer base.

4. Niche Expertise

Different industries require specialized escrow services tailored to their unique needs. Whether it’s real estate, website transactions, cross-border import/export, or general purposes, it’s important to select an escrow service aligned with your industry. Niche expertise is valuable because it indicates that the escrow provider understands the specific challenges of your industry and can address them effectively. For example, if you operate in e-commerce trade, Kusnap or Peppa should be your preferred escrow service. Dealing with generalists may prove more challenging as they might not have a comprehensive understanding of your business requirements.

5. Communication

Effective communication is vital when choosing any business partner or service, and escrow is no exception. Before encountering a crisis situation, test the responsiveness and relevance of the service’s customer support. Prompt and competent communication from the escrow service representative enhances the overall value of the service.

6. Reviews and Reputation

Choosing the right escrow service for your business is really important, and their reputation matters a lot. It’s crucial to ensure that the escrow service you choose operates with integrity and has a solid reputation. Take the time to research and read customer reviews about the company to gauge the satisfaction levels of previous clients. Opt for an escrow service that is known for its professionalism, attention to detail, ethical practices, and strong reputation. This way, you can be confident that you’ll get the high-quality service you deserve.

Conclusion

Escrow services are a great choice for small and medium-scale businesses as they provide a safer and more reliable way to handle transactions. By mitigating financial risks, protecting against fraud and scams, building trust with customers and suppliers, streamlining transactions, and facilitating dispute resolution, escrow services empower SMEs to navigate the complexities of the business world with confidence. Embracing escrow as a preferred method for financial transactions can help SMEs safeguard their interests, foster growth, and establish a reputation for trustworthiness in the marketplace.

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BUSINESS

Resilient Future: The 2023 West Africa Property Investment Summit

Published

3 days ago

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Charting a Resilient Future: Insights from the 2023 West Africa Property Investment Summit

In a significant gathering of real estate influencers, the West Africa Property Investment Summit 2023, which took place on Wednesday, 23rd November, brought together leading figures from Kenya, Ghana, South Africa, and Nigeria. Under the theme “Rewriting the Narrative: Positioning & Strategies for the Future,” the summit served as a vibrant forum for in-depth discussions and strategic planning, aiming to shape the trajectory of West Africa’s real estate landscape: “Industry Leaders Chart Course For Resilient Future At The 2023 West African Property Investment Summit.”

Resilient Future: The 2023 West Africa Property Investment Summit

Resilience in the Face of Macroeconomic Challenges

One of the key speakers, Mr Tola Akinhanmi, the Head of Real Estate Finance at Stanbic IBTC, took centre stage to address the challenges posed by the current macroeconomic environment. Despite grappling with inflation, exchange rate volatility, and fluctuating interest rates, Akinhanmi’s message was one of resilience. He underscored the real estate sector’s intrinsic strength, characterizing it as a long-term asset class that provides essential business infrastructure supporting people’s livelihoods, work, and recreation. Akinhanmi highlighted Stanbic IBTC’s commitment to working closely with sponsors, understanding assets, and structuring solutions that ensure stability, allowing these assets to remain relevant through various economic cycles.

Optimism for 2024: A Balanced Outlook

Oladapo Runsewe, the Projects and City Reports Lead at Estate Intel provided a positive outlook for 2024. Citing statistics from the Nigerian Bureau of Statistics that indicated an increase in the real construction sector’s contributions to the GDP in the last quarter, Runsewe foresaw a balanced and positive effect on the market. He emphasized the inevitability of construction and development continuing, driven by the ongoing demand for housing and real estate investments. However, Runsewe highlighted the imperative for collaboration, urging industry participants and the government to join forces on a larger scale to address the substantial housing deficit, particularly in urban centres like Lagos.

Sustainability as a Driving Force

Temilola Shonola, Head of the Edge Program at the International Finance Corporation (IFC), brought attention to the importance of sustainable building practices. Shonola urged developers to embrace green building, dispelling the misconception that it is an expensive endeavour. She introduced the IFC’s free App designed to simplify the green certification process, making it accessible for builders looking to contribute to environmental sustainability. Shonola stressed that more of the market need to adopt green building practices, not only for environmental reasons but also as a means to reduce utility costs and ensure long-term impact.

Navigating the Commercial Real Estate Cycle

Pepler Sandri, the Director of Capital Markets at JLL, delved into the complexities of the commercial real estate cycle. Acknowledging the sector’s challenges and the impact of the global COVID-19 pandemic, Sandri painted a picture of recovery and resilience. He noted that Nigeria, like many other countries, faced unique macro issues affecting its recovery. Looking ahead, Sandri expressed optimism as interest rates stabilize, predicting a potential recovery in the next 6-12 months in global developed markets. However, he cautioned that Nigeria might experience a longer recovery period, echoing sentiments from Stanbic’s chief economist, who suggested a year or two before a strong trajectory toward recovery becomes evident.

Conclusion: A Call for Collaboration and Sustainable Growth

The West Africa Property Investment Summit 2023 provided an invaluable platform for industry leaders to share insights, strategies, and collaborative approaches to propel the real estate sector forward. As the summit concluded, attendees were left with a renewed sense of optimism and determination to navigate the ever-evolving landscape of West Africa’s property market. The resounding message from the summit echoed the need for collaboration, sustainability, and strategic planning to ensure a resilient and prosperous future for the region’s real estate industry. Read More

BANKING

How Kora Payment Link Helps Online Businesses To Grow

Published

2 weeks ago

softchris4ol

How Kora Payment Link Helps Online Businesses To Grow

The advent of technology with the COVID-19 pandemic has increased the adoption and popularity of online businesses. This is owed to the ability to operate small and medium-sized businesses from anywhere across the globe – which alludes to the fact that the world is now a global village: “How Kora Payment Link Helps Online Businesses To Grow.”

Therefore, there has been a meteoric increase in the number of online shoppers seeking products or services from the available businesses in the digital space.

This is evident in the emergence of e-commerce platforms that operate as an online marketplace for both buyers and sellers. It is also playing out in social commerce through the use of platforms like Facebook, Instagram, or X (Twitter) that people continuously use for their shopping experience.

By and large, online business is today a thriving venture that continues to generate a staggering income for businesses and the local economy.

One of the major perks of online businesses is the flexibility of their payments, such that merchants can offer a range of payment methods. The most common options are bank transfers or card payments, in which businesses provide their customers with bank account details to pay.

But as innovation continues to meet the evolution of online businesses, Kora is making payment strategy seamless for both merchants and their customers. This is through the Kora Payment Link.

How Kora Payment Link Helps Online Businesses To Grow

What Is Kora Payment Link?

A Kora Payment Link is a clickable link that enables business customers to complete a purchase. This is offered as a digital link, which can be used across various social media platforms, websites, or other messaging tools.

How this works is that a customer is directed to a merchant’s online checkout page to complete their transaction anytime they use the Kora Payment Link. This link can be used for both a single transaction, as in a customer invoice and for multiple transactions, as a buy button on social media platforms.

It should be noted that the Kora Payment Link facilitates simple online payments as it does not require a website or code to create and use the link. Therefore, online businesses can easily create a payment link that takes customers directly to the online checkout page of the merchant.

Furthermore, the Kora Payment Link can be used for fundraising, donation, and subscription purposes.

Benefits Of Kora Payment Link To Online Businesses

Accept Payments Anywhere

You can receive payments from your customers across the globe through the payment link that you can easily share on social platforms or websites. This is also a “call to action” strategy to compel your customers to complete their purchase with you without delay.

Keep Payments Simple

Customers do not have to log into a mobile app or website before paying. This is because they can easily click the link anytime and from anywhere to take them to the checkout page to complete their purchase.

Flexible Payment Options

Kora Payment Link provides online businesses various payment options tailored to their preferences. This can be bank transfers, payment cards, or other digital payment methods like Apple Pay or Google Pay.

Therefore, it is the volition of online businesses to design their payment links towards their preferred payment options. Hence attracting customers to complete their purchase with the knowledge that they can use certain payment gateway.

How Online Businesses Can Use Kora Payment Link

Here is a quick step for using the Kora Payment Link:

Create a Kora account and log in.
Navigate to “Payment Link.”
Enter your details and customize your link with certain preferences.
Preview your link and activate it.
Share your Kora Payment Link on social media platforms and other messaging tools.
Start receiving payments.

Conclusion

We can not overemphasize the importance of having a sustainable payment strategy for online businesses to attract more customers who would complete purchases with them. That is why Kora introduced a payment link which merchants can easily share with their customers for transactions.

Kora Payment Link is easy and free to use, and you can get started by creating a Kora account now. [site]

BANKING

How Kora Improves Cross-Border Transactions For Businesses

Published

2 weeks ago

softchris4ol

How Kora Improves Cross-Border Transactions For Businesses

Cross-border transactions are increasingly becoming popular without the concern of waiting days or transfer fees. This is due to the emergence of a fintech company like Kora, which makes cross-border payments simple, cheaper, faster, and easily accessible for businesses: “How Kora Improves Cross-Border Transactions For Businesses.”

A BCC Research of January 2023 revealed that the global cross-border payments market is expected to grow from $176.5 billion in 2021 to over $238.9 billion by 2027. The vehicle for this growth is fintech disruptors like Kora, which offers a digital platform and innovative messaging and settlement layers to improve cross-border business transactions.

How Kora Improves Cross-Border Transactions for Businesses

Ways Kora Is Changing Cross-Border Transactions For Businesses

Improved Convenience

Kora enables you to make transactions fully on its platform, unlike the traditional method of visiting physical branches. This allows you to use the platform anytime and from anywhere without a glitch.

A simple user interface and streamlined onboarding characterize this platform to simplify cross-border transactions. It means you can use Kora to receive funds from your customers or transfer with its bulk payout, multicurrency payout, or mobile money options.

Speed And Efficiency

Kora enables instant or same-day cross-border transactions, which is in the converse of the traditional settlement layers that can take days. Therefore, businesses can complete their transactions in less than one hour on this platform. You do not experience any form of delay in sending or receiving funds on this platform, irrespective of the amount. This is due to its high scalability and optimization of Kora.

Lower Fees

This platform eliminates the meddlesome of third parties like banks and agents in the cross-border transfer chain. As such, it offers a relatively low transaction fee, which is often less than 1% of the transfer amount. This is a major perk of Kora compared to its contemporaries.

Enhanced Transparency

Kora offers an advanced tracking dashboard that provides real-time access to your funds and the estimated delivery timelines. This is because the platform has state-of-the-art blockchain technology that provides complete transparency in the tracking of your funds. It helps to reconcile your income with expenses.

Security And Compliance

Kora employs features like two-factor authentication (2FA) and other security measures to add extra security layers and protect user transactions and funds. This platform is in total adherence to global compliance standards to protect users’ funds and data.

Reduced Foreign Exchange (FX) Risk

Cross-border transactions often involve multiple banks and currencies whose operations result in significant foreign exchange fees and currency volatility that create discrepancies between transferred and received funds.

This is largely the case when businesses in a particular country receive payments from another country.

However, Kora reduces foreign exchange risks that are associated with cross-border transactions by routing funds efficiently at the best exchange rate. On the other hand, Kora users can avoid foreign exchange concerns by using the multicurrency account on the platform that allows them to receive payments in currencies other than their local currency.

Conclusion

Cross-border payment is important to businesses as it enables their growth in the global market. But as digital payments continue to gain traction, there is a need for businesses to know how to leverage the technology to boost sales.

One major platform you can use for your cross-border transactions with your customers is Kora. This is due to the simplicity and scalability it offers you.

You can also start making cross-border transactions seamlessly when you create a Kora account now. [site]