Latest posts
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Operational Risk: A Complete Guide to Understanding and Managing It
Every business faces uncertainty, but not all risks come from markets or loans. Some arise from within the organization itself—processes that don’t work as planned, employees making mistakes, or systems breaking down. These are examples of operational risk. Put simply, operational risk is the potential for financial loss caused by failures in day-to-day business operations,…
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Property Taxation in Ghana: Rates, Exemptions, Payments, and Benefits Explained
Owning property in Ghana comes with responsibilities beyond maintaining the building or land. One of the key obligations is paying property tax, a levy that ensures communities can function and develop. These taxes are not simply charges imposed by the government—they serve as a financial backbone for local development, helping municipalities deliver essential services that…
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Practical Tips to Boost Your Business Profit Margin
Increasing revenue is often a top goal for businesses, but boosting profit margins can sometimes deliver even greater benefits. Higher margins mean you earn more from every sale, which can fuel growth without the pressure of chasing higher volumes. Whether you run a small shop, a service-based company, or a growing brand, learning how to…
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The Merton Model: A Deep Dive into Credit Risk and Financial Insights
The Merton Model, introduced in 1974 by economist Robert C. Merton, is one of the foundational approaches in modern finance for analyzing credit risk. At its core, the model views a company’s equity as if it were a call option on its assets. This creative perspective helps analysts and lenders gauge the chances of default…
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Debt Restructuring: Meaning, Process, and Key Types Explained
Debt restructuring is a process where a borrower—whether an individual, a company, or even a government—renegotiates the terms of their existing debt with creditors. The goal is to make repayment more manageable and avoid default. This usually involves lowering interest rates, extending repayment timelines, or in some cases reducing the total owed. Instead of resorting…
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What Is Defeasance? Complete Guide with Examples and Impact on Balance Sheets
What Defeasance Really Means Defeasance is a financial maneuver that allows borrowers to effectively cancel a loan without formally repaying it in cash to the lender. Instead, the borrower sets aside enough money or high-quality securities, such as government bonds, to generate the payments that would have gone to the lender. Once these funds are…
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Working Capital Loans: What They Are, How They Work, and Best Options for Businesses
Every business, no matter its size or industry, needs a steady stream of cash to function daily. Rent, salaries, utilities, supplier payments, and unexpected costs don’t wait for profits to roll in. A working capital loan is a financial tool designed specifically to keep the wheels of a company turning. Unlike loans used for buying…
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Debit Notes Explained: Definition, Purpose, Examples, and Key Differences from Credit Notes
In the world of commerce, particularly in business-to-business dealings, transactions do not always end the moment goods or services change hands. Payments can be deferred, goods may be returned, and mistakes on invoices sometimes occur. To keep records straight and communication clear, businesses rely on documents such as debit notes. These documents play a vital…
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Tax Registration in Ghana: Insights from a Tax Consultant
Over the years of advising individuals and organizations on taxation in Ghana, one thing I have consistently emphasized is the importance of starting right. Registering with the Ghana Revenue Authority (GRA) is not just about meeting a legal requirement—it is the first step toward building credibility and avoiding problems later on. Whether you are a…
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Credit Notes Explained: Meaning, Features, Uses, and Benefits for Businesses
In the world of business transactions, not every deal goes as planned. Goods may be damaged, quantities may be incorrect, or customers may simply return items for various reasons. In such cases, businesses need a way to adjust their records and maintain fairness between buyer and seller. This is where a credit note, often also…