Page 5 - KZN Business Sense 9.2

202FREE – AWAKE THE PART WITHIN

YOURSELF THAT IS OK TO CHANGE

Biz CORNER Iare going to have to love them the lifestyle they want and a positive experience and keeps
n order to make 202Free
count business owners
them coming back for more.
deserve. How can they with the
demands of the business?
What if there are business
a challenge, take charge and
Firstly, they need to give
owners who are already doing
care for change to happen in
TALK MARLENE their lives. They need to make themselves permission that it well and enjoying the lifestyle
is ok for the business to serve
with Business Coach
they have built?
valuable things happen and
them rather than the other way
take full responsibility for
POWELL
failure or success. This is easier around. They need to consider These business owners still need
@coachmarlenepowell @actioncoachmarlene said than done otherwise every surrounding themselves with to have a sense of urgency to
maintain their edge and stay on
business owner would other business owners who have the surfing side of the big wave
be choosing this path. achieved what they are aspiring
to achieve. of change. They are contributory
What needs to change for them? to the C.A.R.E eco-system for
A solution is to become a part of business as leaders and their
Business owners will have to the Community, Accountability, influence to other business
influence their access to travel, Results, and Education (C.A.R.E.) owners is valued.
adventure and wealth beyond eco-system for business as they
measure. They need to be craving will then be part of a community Business owners are more than
for more meaning not stuff. They where they will tap into their welcome to set up an initial
must want to do important things wants not their needs. Their call with me to find out when
more than acquire gadgets. They environment must make social our next information session
will want to keep improving, keep change desirable, interesting, cool is where they can know more
getting creative, and keep their and fun. and ask any questions that they
eye on the prize. feel necessary to give them the
Their environment must be confidence to join our C.A.R.E
They must be prepared to focus conducive to enable them to eco-system for business. 
on their lifestyle rather than their perform to their full potential
business, as their business is the and support everything they
vehicle to give them the quality of aspire to do to create the lifestyle Contact me on https://linkshare.co.za/
marlenepowell or call 083 479 4471
life they want. they so richly deserve.
More emotion needs to be The C.A.R.E eco-system for
triggered to entice a business business helps our members
owner to want to drive their identify their wants, we’ll build
business as their lifestyle it for them the way they want it.
demands more from them. They Emotions win every time. We SCAN
must let the business deliver on will help create conditions where QR CODE
their wants and needs. they want to take action. TO SEE
Many business owners would This eco-system will create a VIDEO
love to have their business give remarkable platform that delivers

IS CHARGING INTEREST REALLY WORTH IT?

Kim Edwards, Partner, Cox Yeats who “carries on the business date specified in the agreement Far Reaching Consequences
of lending money against the for payment. Most businesses Once you fall within the
enerally, where the security of securities.” The structure their terms and definition of an “accountable
payment of money is amendments to FICA have now conditions as incidental credit institution” in terms of FICA,
Gdeferred and interest, a fee widened this to: agreements. compliance with the full suite of
or another charge has been raised, “(a) A person who carries on Agreements Between Entities FICA provisions is triggered. The
one should consider whether the the business of a credit provider and Large Credit Agreements fact that advancing credit does
provisions of the National Credit as defined in the National not form part of an institution’s
Act, 2005 (the NCA) would apply Credit Act, 2005 (Act 34 of Section 4(1)(a) of the NCA “core business” is irrelevant.
to that transaction. Over the years 2005). exempts transactions between This means that a once off
parties have been able to avoid juristic persons whose asset loan and interest charged on
the application of the NCA by (b) A person who carries value or annual turnover unpaid invoices could result in
structuring transactions so that on the business of providing exceeds a certain threshold a business who would otherwise
credit in terms of any credit
they fall within an exemption agreement that is excluded (currently R1 million) from not be required to register with
or are “incidental credit the application of the NCA and the Financial Intelligence Centre
agreements”. from the application of the Section 4(1)(b) of the NCA having to register, develop a risk
National Credit Act, 2005 by exempts transactions because
Recent amendments to the virtue of section 4(1)(a) or (b) of they constitute a large credit management and compliance plan,
definition of an “accountable that Act.” agreement – an agreement train staff and conduct customer Kim Edwards
institution” in the Financial Incidental Credit Agreements between juristic persons due diligence on all transactions
Intelligence Centre Act, 2001 (regardless of their asset value within its business going forward. it will also shield you from being
(the FICA) appear to negate The definition of a “credit or annual turnover) where Unless another exemption or caught within the new FICA
these loopholes by requiring provider” in the NCA includes a the principal debt is at least exclusion in the NCA applies to definition. 
compliance with arguably even person who supplies goods and R250 000 or more. the transaction, parties need to
more onerous provisions of services in terms of an incidental weigh up the cost of compliance T: +27 (0)31 536 8500
These exemptions are typically
FICA. credit agreement. used in once off funding with FICA against the gain that E: kedwards@coxyeats.co.za
The Changes to FICA An incidental credit agreements between businesses would be made by charging W: www.coxyeats.co.za
interest.
agreement is one where goods or other non-traditional
Originally the definition of or services are supplied and If no interest is charged it
an “accountable institution” in interest is only charged when credit transactions such as will not be regarded as a credit
sales of shares where payment
FICA simply included a person the purchaser fails to pay on a is deferred. agreement under the NCA and

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