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8 Best Banks To Open a Business Domiciliary Account with in Nigeria

8 Best Banks To Open a Domiciliary Account with in Nigeria

We do hear people mentioning that they want to open a domiciliary or “Dom” account and we do wonder what they mean, before I begin to unveil the best banks to open a domiciliary account with in Nigeria, let’s start by knowing some important info about what a domiciliary bank account is all about.

Definition of a Domiciliary account

A Domiciliary Account is a type of account that’s operated in foreign currency. A Domiciliary account is a foreign currency account that allows you to carry out foreign or international transactions such as sending and receiving of money in different currencies like Pounds, Euro, Dollar, etc.

Types of Domiciliary account

The name of the domiciliary account depends on the type of foreign currency you are using to operate or open it. If you are opening with dollar, then it is a dollar domiciliary account, so as the others.

You can open a domiciliary account in any foreign currency you want but the major ones are

  • The dollar domiciliary account.
  • Pounds domiciliary account, and
  • Euro domiciliary account.

Definitely you can’t open a Naira domiciliary account since you reside in the country (Nigeria).

Function of a domiciliary account

A domiciliary account enables one to perform international transactions without any problem. You can send or receive funds in international currencies from anywhere in the world using the domiciliary accounts operated in various banks across Nigeria. However, you can fund it with foreign currencies such as dollars, pounds or euros and also do your foreign transactions on that account.

A domiciliary (which is usually shortened to “Dom”) account can be operated from anywhere in the world with the use of MasterCard (The MasterCard will be given to you if requested) or internet banking. Opening a domiciliary account gives you access to debit cards, internet banking, and mobile banking.

General categories of Domiciliary account

Domiciliary account has two major categories:

  • The current domiciliary accounts and
  • Savings domiciliary account.

The Current domiciliary account is operated like the regular current account where you can make cash deposits and withdrawals in foreign currencies on the Counter. You can also issue cooperate Cheque to third parties in foreign currencies. This category of domiciliary account is best opened and maintained by international businesspersons

Savings domiciliary account operates just like the local savings account. You can only make deposits and withdrawals in international currencies but cannot issue out Cheque.

How to open a Domiciliary account today in Nigeria

To open a domiciliary account or foreign currency account, you have to open one it in any of the local banks in Nigeria – GT Bank Plc, Zenith Bank, UBA, Access Bank, Ecobank, First Bank, Wema Bank, Sterling Bank, FCMB, Fidelity bank, Union bank, Stanbic IBTC, etc.

You can send and receive international currencies on the same currency in which the domiciliary account was opened. For example, if you open a dollar domiciliary account; you can only send and receive dollars in the dollar domiciliary account, Pounds in pounds domiciliary account, and euro in euro domiciliary account, the same goes for others.

Foreign transactions via wire transfer takes a minimum of three to five working or business days before the transaction(s) is/are successful. Funds withdrawals can also be done using the domiciliary account card issued to you at various ATMs the dispense foreign currencies in Nigeria or better still you can also withdrawal the fund in your bank branch.

Advantages of opening a domiciliary account

  1. You are opportune to save your money in foreign currency with a domiciliary account without the money depreciating irrespective of how unstable the currency is going to be. For instance, you can fund your dollar domiciliary account for the sole purpose of saving your dollars for future use.
  2. You can carry out international transactions with your given MasterCard on a domiciliary account.
  3. You can also receive money in foreign currency on a domiciliary account.

Disadvantages of opening a domiciliary account

  1. You are only permitted to operate one type of foreign currency per domiciliary account.
  2. You need two referees before you open a domiciliary account, which sometimes is difficult to get.
  3. Analyzing the charges the bank takes from the domiciliary account in transactions are quite high also depends on the bank. However, due to CBN intervention with the new monitory policies, the cost of opening a domiciliary account for personal use has been reduced to be between $50 to $100 depending on the bank you decide to open with. On the other hand, the cost of opening a cooperate domiciliary account is now between $100 to $500 depending on the bank. While the cost of maintaining and renewing a domiciliary account as reviewed by the CBN in the new monitory policies is $10.

Best Banks To Open A Domiciliary Account With In Nigeria

Almost every bank in Nigeria opens domiciliary accounts for their customers. But there are top ones that make the operation of the account more worthwhile for their customers. In no particular order, here are the top best banks in Nigeria where you can open a domiciliary account with. There are other good banks thou but this list here is actually the top.

Zenith bank

Zenith bank is one of the leading commercial banks in Nigeria with good customer service and products. The main difference between an Ordinary domiciliary and Cash domiciliary account is that you are able to transfer funds using an ordinary domiciliary bank account. transfer transactions are not permitted for the Cash domiciliary account, and, similarly, with a Cash domiciliary account, you can access EazyMoney as one of the channels available.

Features and Benefits of opening Zenith bank domiciliary account

  1. It has zero opening balance
  2. Zenith bank offers internet banking
  3. It also issues a debit cards for USD only
  4. Your access to mobile banking
  5. You can receive email/SMS alerts when you perform any transaction
  6. Standing orders
  7. The available currencies on Zenith Bank’s domiciliary accounts are USD, EUR, and GBP.

Requirements for opening Zenith bank domiciliary account

  1. First, you need an account opening form
  2. One passport photograph of authorized signatories
  3. Valid ID (Driver’s License, International Passport, National Identity Card or Voter’s Identity Card)
  4. Public Utility Receipt dated within the last 3 months example are PHCNbill, water rate bill, tenement rate, rent receipt, telephone bill, etc.
  5. Visitation Report (Residence)

Guaranty Trust (GT) Bank

Guaranty Trust Bank fondly called GT Bank or GTB, is one of the top commercial banks in Nigeria that will give you value for your money when it comes to domiciliary account opening. GT Bank domiciliary account is available only in US Dollars, British Pounds and Euros and they can be funded through cash inflows and cash deposits.

Benefits and features of GT Bank domiciliary account

  1. You have 24/7 banking services via various e-channels.
  2. You can transfer money easily in many top foreign currencies to other bank’s domiciliary accounts in Nigeria and outside Nigeria
  3. You can also withdraw cash in foreign currency at every GT Bank branch.

Requirements for opening GT Bank domiciliary account

  1. A Filled and signed Domiciliary Account opening form.
  2. You need a copy of identification card (Driver’s License, International passport, National I.D Card, or any other acceptable by the bank).
  3. A single passport clean photograph.
  4. Two completed reference is needed to sign on your forms.
  5. A utility bill issued within the last 3 months

 First Bank

First Bank is one of the most reputable commercial banks of Nigeria that provides excellent services and customer support. Domiciliary accounts with First Bank enable you to ease your international transactions. These accounts are available through money deposits in cash, currency check payments or traveller’s checks.

Types of First bank domiciliary account

First bank has two kinds of domiciliary accounts;

  • FirstDom Plus and
  • Primary Domiciliary account.

FirstDom Plus

FirstDom Plus is an account to deposit foreign currency which is exclusively targeted at those who are domiciliary customer with balances of at least $5,000. It is a domiciliary bank account that is designed to maximize the advantages. The interest rate is appealing and it has lower fees for banks. Only corporate and individual customers are eligible to make an application for this bank account.

Benefits and features of First bank domiciliary account

Benefits and features FirstDom Plus account

  1. The account is operated with a specialized non-clearing chequebook
  2. Foreign draft issuance is allowed on the account
  3. No charges on over-the-counter cash withdrawals
  4. Transfer charges on account as low which is 0.25% flat

Primary Domiciliary account

Domiciliary primary account is a account that lets you keep your money in dollars and Euro, or Pounds Sterling, or Euro with your money being worth based on the current exchange rate. This account assists in International business dealings. Only corporate and SMEs can use this account.

Benefits and features of Primary Domiciliary Account

  1. A minimum opening balance of $500, €500 or £300
  2. Minimum operating balance of $100, €100, or £50
  3. There is no limit to the number of withdrawals in a month
  4. Your cash withdrawal is at 0.5% flat per transaction
  5. An Inter sol transactions (account owner only) are allowed.
  6. A Guaranteed Foreign currency deposit
  7. A pool for interest on bank fund
  8. There are no restrictions on the number of withdrawals
  9. Inter sol withdrawal (account holders only) allowed

Requirements for opening First bank domiciliary account

Requirements for opening FirstDom Plus account

  1. Individual Account Opening Form
  2. Completed Specimen Signature card
  3. Two recent passport photographs
  4. Valid means of identification e.g. International Passport, Driver’s License or National I.D. Card (Original to be sighted)
  5. Utility Bill, e.g. NEPA, NITEL Bill, etc

Requirements for opening Primary Domiciliary account

  1. A completed account Opening Form
  2. A completed specimen signature card
  3. Your two (2) recent passport photographs
  4. An address verification document: Utility Bill
  5. A valid means of identification e.g. International passport, Driver’s license or National ID card.

UBA

United Bank for Africa (UBA) is a pan-African bank that allows their customers enjoy many international banking benefits and it’s another bank in Nigeria that you can open a domiciliary account with. This bank gives you a wide range of options to choose from when opening a domiciliary account with them. It also operates in major foreign currencies such as US Dollar, Pound Sterling, Euro, etc.

Types of UBA domiciliary account

UBA has the following domiciliary accounts;

  • Dom Advantage account and
  • Freedom Domiciliary Account or Freedom Dom account

Dom Advantage Account

Dom Advantage is a current or savings domiciliary account denominated in foreign currency – US Dollar, Pound Sterling, EURO etc

Benefits and features of Dom Advantage account

  1. It has an Interest rate that is payable on the account balance
  2. It has a zero-transfer charge
  3. It has zero withdrawal charge
  4. Also has an unlimited number of withdrawals
  5. For withdrawal Charge: there are zero charges once your account balance is up to minimum operating balance
  6. Also, for transfer charge: there are zero charges once the account balance is up to minimum operating balance

Requirements for opening a Dom Advantage Account

  1. A minimum Opening balance: $100, or €70 or ₤80
  2. Minimum operating balance of $1,000.00 or its equivalent
  3. Valid Identification (International Passport, Driver’s License, National ID card, Voter’s card)
  4. Two Passport photographs

Freedom Domiciliary account

Freedom Domiciliary Account or Freedom Dom account is a USD foreign currency account with lower operating limits, for those who want to start saving in dollars. Maximum operating balance of $5,000 or its equivalent. Foreign currency cash deposits can be used to fund the account and Foreign currency inflows & cheques deposit are not allowed in the account

Benefits and features of Freedom Domiciliary Account

  1. Zero Opening Account Balance
  2. A serialized non-clearing cheque-type withdrawal booklet used for withdrawal by account holder only
  3. Interest bearing account

Requirements for opening Freedom Domiciliary account

  1. Minimum Operating Balance of $10 or its equivalent
  2. Completed account opening form
  3. 2 passport photographs
  4. International passport or Driver’s License or National ID card or Voters Card, or Student ID card or Association ID card or Town Union ID card or Residential Estate ID card or Resident Permit (for immigrants)

U-Care Plus Domiciliary Account.

The U-Care Plus Domiciliary Account is a variant of U-care plus savings account, it is an FCY account denominated in USD, GBP, & EURO meant for parents who want to save for children’s secondary/tertiary education abroad.

Requirements for opening U-Care Plus Domiciliary Account

  1. A minimum Opening: $100, or €70 or ₤80
  2. Minimum operating balance of £350 or its equivalent.
  3. Valid Identification of Parent/Guardian
  4. Two Passport photographs of Child and Parent
  5. Child’s birth certificate
  6. Address verification of the parent/guardian

Benefits and features of U-Care Plus Domiciliary Account

  1. It has an Interest rate of 0.1% that is payable on the account balance
  2. It has an unlimited number of withdrawals
  3. Withdrawals: 0.5% + VAT on amount withdrawn
  4. Telex Transfer: 0.5% +VAT or US$10 or its equivalent whichever one is higher + Communication charge of US$25 or Euro 20 or £ 15
  5. Draft request: 0.5% +VAT or US$10 or its equivalent whichever one is higher + communication charge of US$25 or Euro 20 or £ 15

ACCESS BANK

Access bank also offers the best domiciliary accounts in Nigeria. Being one of the most popular banks and also having a great number of customers, Access Banks allows their customers to transfer and receive money in currencies other than the Naira.

The available currencies on Access Bank domiciliary account are dollar (USD), Pound (GBP), Yen and Euros. The account is open by individuals, business owners Small and Medium-sized corporations, and corporate entities.

Types of Access bank domiciliary account

Access bank has two types domiciliary account

  • Domiciliary Current account
  • Domiciliary Savings account

Domiciliary Current account

Benefits and features of Domiciliary Current account

  1. Access to overdraft and loan facilities for qualified customers at very competitive rates.
  2. Access for your account at the bank.
  3. Monitoring of your account’s activities at the convenience at your desk or home using the Internet, phone as well as mobile banking.
  4. Third party withdrawals
  5. No minimum balance required
  6. No Account maintenance fee
  7. Convenient & flexible account opening requirements.
  8. Sends account information updates via SMS or email alerts.
  9. Access to cash anytime, anywhere with debit cards on ATMs
  10. Use of Mastercard, Visa and Verve debit cards on POS terminals
  11. No restriction on number of withdrawals
  12. Different variants of Debit Card based on the customer’s preference
  13. Access to alternate channels e.g. Internet and Mobile banking
  14. Cheque book. Direct debit instructions
  15. Third third party transactions
  16. Third party transactions allowed
  17. All other transactions are charged at banks approved rate
  18. Cash handling charge (COT equivalent) of 0.5percent on withdrawals
  19. Interest rate 0.01% per. a. (above 100,000 $,£,€)

Requirements for opening Domiciliary Current account

  1. Opening balance of $100, £100 & €100
  2. Means of address verification
  3. 2 references
  4. 2 Passport photographs
  5. Valid ID of each signatory
  6. Residence Permit (Foreigners)
  7. Forms CO7 and CO2 as applicable for companies
  8. Certificate of Incorporation / Business Registration for companies
  9. Memorandum and Article of Association as applicable for companies
  10. Board resolution as applicable
  11. Search report as applicable

Domiciliary Savings account

Benefits and features of Access bank domiciliary savings account

  1. Convenient & flexible account opening requirements
  2. Remote access to your bank account with our channel platforms.
  3. You can monitor your account activity from the comfort of your home or office via phone, internet and mobile banking
  4. Provides account information updates via SMS/Email alerts
  5. No monthly maintenance charge on the account
  6. $10 issuance of debit card
  7. Free debit card for Dom Plus
  8. Rate of interest 0.1 percent and 0.2 percent for Dom Plus Interest rate of 0.1% and 0.2%. But they pay but paid monthly (Classic and Plus, respectively)
  9. There are various variations of Debit Card depending on the preferences of the consumer
  10. Access to alternative channels, e. for example. Mobile banking and internet banking are two examples.
  11. Non-chequing account (No cheque deposits allowed)
  12. All other transactions are charged in line with the Banker’s tariff.

Requirements for opening domiciliary savings account

  1. Opening balance and daily balance of [$, £,€] 500 for Classic
  2. Opening balance daily balance of [$, £,€] 10,000 for Dom Plus
  3. Means of address verification
  4. 2 references
  5. 2 Passport photographs
  6. Valid ID of each signatory
  7. Residence Permit (Foreigners)
  8. Forms CO7 and CO2 as applicable for companies
  9. Certificate of Incorporation / Business Registration for companies
  10. Memorandum and Article of Association as applicable for companies
  11. Board resolution as applicable
  12. Search report as applicable

Fidelity Bank

Fidelity bank provides you a foreign currency account to do international transactions. It operates in US Dollars, British Pounds and Euro. It enables inflows to hit designated account without being subjected to variation in the local exchange rate, depending on the currency you are operating.

Features and Benefits of Fidelity Diaspora domiciliary account

  1. A minimum account opening balance of $50, €50, £50
  2. A minimum account operating balance of $30, €30, £20
  3. An interest rates on call/demand and fixed deposits
  4. You have access to Internet banking, email transaction alerts and statements
  5. Also, you have the option of a Nominee Resident Joint Signatory in Nigeria (e.g. spouse, parent, etc)
  6. Standing orders
  7. There are investment facilitation services for shares traded on NSE
  8. A draft issuance in foreign currency
  9. You have the privilege to open a Domiciliary and a Naira current account

Requirements for opening Fidelity Diaspora domiciliary account

  1. A Diaspora Account Opening Form
  2. You need one Passport Photograph (digital passports allowed)
  3. A valid identification card; Valid Nigerian passport, valid driver’s license, valid national ID card or voter’s card, Valid foreign passport/driver’s license supported by proof of Nigerian Nationality (either birth certificate, expired/valid Nig. Passport, driver’s license or Voters card)
  4. Proof of address. A certified or notarized duplicate of one of these: Bankers confirmation stamp utility bill that was issued within the three (3) months of the last months of statements from credit or bank accounts made within the last 3 months and receipts for tenancy agreements/rent.
  5. Additionally, you require two Nigerian Bank references from active domiciliary, corporate or current account holders (for domiciliary and current account only). When the certification of documents is done by one of the following the following: Notary Public/court/lawyer/Solicitor, Nigerian Embassy/High Commission/Consulate in customer’s country of residence, your Foreign bankers, government Security Agencies, commissioner for Oath

UNION BANK

Union Bank offers you a variation of domiciliary accounts, depending on the needs of customers.

Types of Union bank domiciliary accounts

The different types of domiciliary accounts available at Union Bank Nigeria are:

  • Domiciliary Savings account
  • Domiciliary Current account
  • Travel Card USD Domiciliary account/ Unionace USD Domiciliary Account

These accounts designed to fit the needs of customers, places Union Bank domiciliary account as one of the bests in Nigeria. The available currencies on the Union Bank domiciliary accounts are USD, GBP and Euro.

To open a domiciliary account with Union Bank, you need a minimum of $100 across these account types.

Domiciliary Savings account

This is a foreign currency account that gives customers the option to Save on any of the three currencies of the world (US Dollars Euros, US Dollars as well as GB Pounds) while earning interest.

Benefits and features Domiciliary Savings account

  1. Account opening balance of $100 or its equivalent in Pounds and Euros
  2. Charge of the amount you withdraw is 05%
  3. The interest earned is 0.2 percent per.A (interest is forfeited if the withdrawal exceeds four times within one month)
  4. 0.05% is charged on cash withdrawals

Requirements for opening Domiciliary Savings account

  1. 2 passport photographs
  2. Valid means of identification: international passport or Driver’s license/National Identity card
  3. Current Utility bill (not more than 3months old) or signed tenancy agreement
  4. BVN
  5. CIU Form

Domiciliary Current account

This is a foreign currency account lets customers fund their account with any three currencies (US Dollars Euros, GB and US Dollars).

Benefits and features of Domiciliary Current account

  1. Account opening balance of $100 or its equivalent in The Euro and Pounds
  2. Swift charges of 22USD,15GBP and 18EUR for transfers. Access to International Transfer
  3. Access to International transfer
  4. Transfer charge of zero point one per cent 1.1% of the principal amount (2 percent when transfers of cash are made) Zero.
  5. 0.05% is charged on

Requirements for opening Domiciliary Current account

  1. Two passport photos
  2. Valid proof of identification: International passport or driver’s license/national identity card
  3. Current utility bill (not more than 3 months old) or signed tenancy agreement
  4. BVN
  5. 2 valid references
  6. CIU Form

Unionace USD Domiciliary Account/ Travel Card USD Domiciliary account

Unionace is dollar-denominated and it is directly linked to your Travel USD domiciliary account. All transactions carried out using the card reflects on the dollar account instantly.

Benefits and features of Unionace USD Domiciliary Account/ Travel Card USD Domiciliary account

  1. The Card has no limit
  2. Validity is for 3 years
  3. Annual Maintenance of $10
  4. Account Opening balance is $100
  5. Up to 3% interest rate p.a on the domiciliary account
  6. Discount on travel tickets from some selected airlines
  7. Over the Counter transaction is allowed on the account
  8. Cost per person per visit at VIP lounges is capped at $32
  9. Issuance of Priority Pass for access to VIP lounges around the world

Requirements for opening a Unionace USD Domiciliary Account/ Travel Card USD Domiciliary account

  1. BVN
  2. CIU Forms
  3. 2 valid references
  4. 2 passport photographs
  5. Valid means of identification: international passport or Driver’s license/National Identity card
  6. Current Utility bill (not more than 3months old) or signed tenancy agreement

FCMB (First City Monument Bank)

The First City Monument Bank is another bank in Nigeria and when it comes to opening a domiciliary account with them, they are part of the best banks to open a domiciliary account with. Like every other domiciliary account, the FCMB domiciliary account allows customers to maintain accounts with foreign currencies.

Types of FCMB domiciliary account

FCMB offers 2 types of domiciliary accounts

  • FCMB Domiciliary savings account
  • FCMB Domiciliary current account

FCMB Domiciliary savings account

A foreign currency account with lower operating limits, for those who want to start saving in FX and salaries

 Domiciliary Account is designed to assist in developing savings habits when it comes to foreign currency for those who have it those who frequently receive or require to pay who regularly receive or make payments British Pound Sterling (GBP) as well as which is the United States Dollar (USD) and European.

Benefits and features of FCMB domiciliary savings account

  1. Opening balance of 60 GBP, 100USD, 70 Euros
  2. Account that is interest bearing, but will be canceled when there is more than 3 withdrawals within a month.
  3. A non-clearing, serialized book for withdrawals that is used by the account holder alone.
  4. Allows Foreign Currency Salary payments as well as cash deposit.
  5. Accounts can be used as an individual account or jointly operated account
  6. There is no charges for cash withdrawal.
  7. Offers Issuance of foreign currency denominated drafts
  8. Free E-mail transaction notifications
  9. Free monthly electronic statements

Requirements for opening FCMB domiciliary savings account

  1. Completed account opening form
  2. 1 passport photograph
  3. Minimum of 18 years-old and provide the following:
  4. International passport, Driver’s license or National ID card or Voters Card or Resident Permit (for immigrants)
  5. Verification of address like utility bill, recent bank statement or local authority tax bill etc.

FCMB Domiciliary current account

The FCMB Domiciliary current account allows customers to maintain accounts in foreign currencies. It is designed to enable customers conveniently carry out foreign currency transactions irrespective of where they are.

The features and benefits of Domiciliary Current Account

  1. A low open balance of 60 GBP, 100 USD, 70 EURO
  2. There is no minimum operating balance
  3. Personalized non clearing Cheque book for over the counters withdrawals
  4. Access to internet banking
  5. No limit on the frequency of monthly withdrawals
  6. No account maintenance charge
  7. Interest of 0.05% p.a for $4,000
  8. No losses from verse movements in exchange rates

Requirements for opening FCMB Domiciliary current account

  1. Completed account opening form
  2. 1 passport photograph
  3. Minimum of 18 years-old and provide the following:
  4. International passport or Driver’s License or National ID card or Voters Card or Resident Permit (for immigrants)
  5. Address verification e.g. Utility bill, recent bank statement or local authority tax bill etc.

Conclusion

It is very important to know the best banks to open a domiciliary account with in Nigeria. Different banks have different features, different transaction rates, etc. So, don’t just decide to open a domiciliary account without know what the bank is going to offer you in return and how they operate these accounts.

Please don’t forget to share our list of the best banks to open a domiciliary account with in Nigeria and if you have any enquiries, please feel free to make use of the comment box below.

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Business

5 Strong Businesses That Has Thrive Even In Time Of Depression

5 Strong Businesses That Has Thrive Even In Time Of Depression

If you are planning to start a business but have not decide ton he one to start, it will be very good you consider things before you even venture into the business world.

In my time doing business, I have learnt some beneficial things and that is to invest in businesses that will last even if anything bad happened to the economy.

There are businesses that will thrive even in the present of work great depressions most top businesses toping right were launched during the depression.

Starting your business in that category will do you great justice since you are not just planning to just make a couple of dollars and then leave the market.

If you plan for a long-time business that will probably last for centuries, the businesses below should be what you look into starting.

5 Businesses That Will Always Thrive In Depression Time

Here is a business that has a high chance of surviving in a time of recession and so you should look forward o starting one as you plan your business venture.

Discount & Bargain Shops

During a recession, people tend to cut back on luxury, but that doesn’t imply they never purchase anything that isn’t acquired.

Even a mock economic theory known as the Lipstick Index contends that since cosmetics are a relatively inexpensive indulgence, sales will always increase in difficult economic times.

But you can also find a wide range of other inexpensive pleasures in discount and bargain shops. When a recession strikes, people who ordinarily never visit a dollar store reconsider their shopping habits.

Food and Beverage Industry

Given that everyone still requires food and drink to survive, the food and beverage business is one of the most recession-proof sectors of the economy. Businesses in this area can continue to thrive even during a recession because it is not a luxury that can be neglected during trying times.

All foods sold at pharmacies, mass merchandisers, convenience stores, grocery stores, and restaurants are included in the food retail sector. There is obviously money to be made in this market as seen by the $6.22 trillion in total sales of these food retail services in the US between 1992 and 2019.

Dollar Stores

During a recession, many consumers may reevaluate their purchasing patterns, which can help entrepreneurs like those who manage a dollar store that offers less expensive options succeed.

Food delivery

Many individuals simply dislike cooking, but during a recession, dining out frequently may not be financially prudent. This unique consumer base can support the success of food delivery businesses during a recession.

The daily basics of life, such as snacks and beverages, are all provided by a vending machine business. In the event that sales decline at its current location, a vending machine can be transferred to a busy area.

Grocery stores

During a recession, smaller grocery and convenience stores frequently experience an increase in foot traffic as consumers try to cut costs by shopping there rather than at big-box retailers.

Candy Sales

Although some people may view comfort foods as a luxury, their comparatively low cost for the momentary pleasure they give customers maintains their popularity even in difficult times. Even during the 1930s Great Depression, Mars Bars, one of the most well-known candies in the world, were created.

Fast Food

The fast food business draws a lot of stock investors due to both its historical resilience during economic downturns and its propensity to boom during good times.

Tax and Accounting Services Firm

It must be so tempting to avoid paying those taxes! Taxes must be paid on time or face consequences, recession or no recession.

The worst-case scenario is for a person or business to undertake bookkeeping on their own in the hope of saving money. Even if it appears to be a quick win, there are a lot of risks involved, and poor estimates could have unintended consequences and cause more problems in the future.

Entrusting a trained accountant to complete the work while you concentrate and set revenue goals is the prudent course of action, especially in trying times.

Another industry in the business world that has shown to prosper in recessions is accounting firms. Businesses should have a sound accounting and bookkeeping system in place, especially during recessions.

A business’s initial reaction during periods of slow economic growth will be to reduce expenses and maintain control over its finances.

The truth is that when cash flow is limited, many will want accounting consulting. When a business is struggling, an accountant’s knowledge is essential to examine costs, manage remaining resources, and offer wise advise on how to resolve financial issues.

Regrettably, the majority of business owners are ignorant about taxes. Accounting assistants will be aware of the situations in which these tax advantages can be beneficial.

More importantly, these experts will guide a person through and understand the most current adjustments to company needs caused by the 2020 epidemic. Therefore, it’s crucial to rely on accounting support when a recession occurs.

Universities and Colleges Business

According to studies, students are more likely to enroll in college during a recession and even more likely to stay there [source: Parker].

Higher education is one of the more recession-resistant industries due to the fact that it was true during the Great Recession and every other downturn in the United States since the 1950s.

During the Great Recession, an increase in college enrolment was partially driven by older employees. Some older workers chose to return to school to upgrade their abilities as layoffs rose. Only 1.9 million adults between the ages of 40 and 60 were enrolled in college in 2007, but by 2011 that figure had increased to 2.3 million [source: Airoldi].

While the Great Recession made it less probable for colleges and institutions to hire young or inexperienced teachers, they continued to retain tenured staff and even increased their pay [source: Parker].

However, the boom years are the best times to find employment. According to the Bureau of Labor Statistics, demand for post-secondary teachers will grow by 11% between 2018 and 2028, which is “significantly faster than usual.”

Home And Office Improvement Firms

When there is a recession, many people try to conserve money by staying home rather than going out, but this means that their home requires more maintenance. Home improvement enterprises are excellent candidates for recession-proof small businesses since they still have enough work to accomplish even in hard times.

Since Andrew Porwal, the proprietor of Garden Centre Shopping, has spent 30 years working in the UK gardening industry, he has experienced numerous economic downturns.

“Our clientele spends more time at home and will continue to spend money on their outdoor space throughout a recession or pandemic.

You have the chance to not only reach your predetermined targets but also grow your clientele by putting a strong emphasis on customer service and streamlining the sales process “He clarifies.

Similar incidents have been reported by James Chapman, proprietor of the bathroom company Bella Bathrooms since 2005.

The bathroom sector is surprisingly durable, especially in the UK. Homeowners looking to upgrade their properties during trying times, particularly if they might need to downsize or sell because of financial difficulties.

The bathroom is a room that can raise a home’s value for very little money. Due to the increased amount of time people were spending at home during the pandemic, bathroom sales soared “James opined.

Conclusion

When you plan to start a business, you should plan ahead encase anything unplanned happens because no one can really predict tomorrow but you can always plan and prepare for things to go bad for any reason.

We will appreciate it if you can share this post to your social media handle for other people to learn and know what kind of business they should invest in or build themselves.

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3 Steps On How Insurance Agency Have Been Grown In Past 10 Years

3 Steps To Grow An Insurance Agency

Are you new to the insurance agency business, you may want to learn one or two things from those who has experience in the market.

I was opportune to work in one insurance firm, in my work there I learn many things I would love to share with in this post.

To get started you need to understand that there are lots of way one can fail in this line of business but at the same time there are smaller ways one can avoid failing in business.

Now below are what I learnt about growing and Insurance agency and mays to maintain that growth rate when you start seeing positive changes in the business

3 Steps To Grow An Insurance Agency

Here are 3 steps i have seen insurance agency grown in the past 10 years, you may apply this strategies to enable you grow yours and reach the dream you have always.

Take Advantage Of Data Used By Other Top Firms

Data intelligence is essential for identifying the most profitable policy types, the areas with the highest potential for upselling or cross-selling, the carriers with the best compensation, and more.

It’s possible that you’re already making use of data in some way. You’re on the right track if you’re monitoring high renewal increases, cross-sell chances, or just looking to see when your largest traffic is during the year.

Don’t panic if you haven’t started down the data and analytics path yet. Utilizing data and analytics aids in identifying opportunities that are obvious to increase your clientele and overall premium. It enables you to go in-depth and make recommendations for extra insurance policies or coverages based on what other clients with comparable needs have also bought.

Principals of Renaissance Alliance member agencies make use of our interactive reporting dashboards and Arno, a handy mobile app that puts cross-sell opportunities at your fingertips.

Invest Your Time and Money In Employees.

You must invest in your biggest asset your workforce if you want to expand your company. They are the backbone of your organization, thus it is crucial to initially invest in them and provide them with ongoing training.

In the end, you want your staff to represent your business and to be its biggest supporters. (Stumble this!) Your team will be crucial to customer retention and referrals if you pay them fairly, provide them bonuses, and show them how their efforts affect the agency’s overall success.

Employee motivation can be increased through financial investments, but there are many more benefits to investing in your staff. Consider paying for seminars and training, purchasing ebooks for workers upon request, and always bring as many people as you can afford to training events sponsored by the industry or the carrier.

Every effective “mega-agent,” according to agent Perry Olsen, has a staff of employees that keep things running smoothly on a daily basis. Hand-selected hires with a specific job are part of your team.

Well Planned Administration Manager

The individual in this role makes sure that all agency actions go place consistently while reducing potential problems. The OM may handle a variety of tasks, such as responding to client enquiries, finding missing paperwork and payments, monitoring the sales team’s progress, and making sure that all follow-up actions are taken promptly. Additionally, the OM could be in charge of many agency locations.

Planned Account Manager

Every claim that comes into the agency is handled by a claims manager. He or she organizes car rentals and towing, submits claim transfers, follows up with consumers, takes pictures on-site, and connects clients with outside restoration or mitigation businesses. The claims manager is in charge of overseeing the entire claims procedure.

Manager of an office

The office manager is on the front lines, whereas the operations employee more closely resembles an umbrella function. This person will manage incoming calls, process paperwork, welcome visitors, and do different clerical duties. Additionally, he or she might deal with client grievances or communications addressed to the business owner.

Strategic Accounting

Commissions, payroll, time clocks, and all other financial problems are taken care of by an on-site accountant.

Good Sales Group

The organization’s lifeblood is the sales team. Each team member is in charge of generating leads and referrals for new clients.

Locate Your Niche

Insurance agents frequently try to appeal to everyone, but specialty marketing may be a more effective way to boost your insurance sales. You can benefit from focusing your marketing efforts on a single business class by:

Develop a thorough understanding of the dangers in a particular industry. Sometimes the risks are plain to see. However, your capacity to assess hazards grows as you gain expertise in a particular career.

Obtain a competitive advantage. Customers are more inclined to select an insurance agent who is knowledgeable about their sector.

Heighten your posture. A solid strategy to establish yourself as the industry’s go-to agent is to provide them with the appropriate insurance coverage for a reasonable price. Achieve recommendations. More clients may bring you new leads as your reputation spreads.

Start your decision-making process by doing some research on the typical business types in your area. To stay informed on crucial problems, it may be helpful to join trade associations, read industry periodicals, and concentrate your networking efforts on people in that sector.

Build and Modify Your Mentality

Why doesn’t everyone invest if it leads to growth? Of put it simply, it’s due to their fear. They desire to develop but are unwilling to do so by taking measured risks.

A valid strategy to save money is to avoid unneeded expenses. However, you’re doing it wrong if cost-cutting keeps you from making wise investments. This is another something I did. I’ve informed myself,

‘I can handle anything on my own.’ This notion hindered me from working harder and having more free time for a very long period. I wasted time and money because I thought doing everything yourself would be less expensive. I don’t have time, I say. enrolling in this costly course? What time should I execute that?

I tried to handle everything on my own, which left me with no time to “sharpen the saw.” And if I hadn’t been so stingy and obstinate, I could have learnt in a matter of hours about the years of experience of a professional.

I am unable to afford this. Would you be prepared to invest if you were almost positive that a $10,000 investment in your company would result in a $10,000 annual profit? This 100% return on investment surpasses the S&P 500 by a factor of almost 12. In other words, you should use the $10,000 to expand your company.

You will find the capital to invest in anything if it is profitable. You should thus seize this chance to expand your insurance company at this time. Here are 15 tested strategies to help you

Accept diversity

The near future is varied. More over half of Americans will be members of a racial minority by 2060. Insurance companies must embrace diversity if they are to provide good services to a diverse community.

Agency owner Raina Walton wrote in her post for Agent for the Future that starting the dialogue about diversity in the independent agent channel is the first step in making that transition.

We need to start having these discussions and ensure that we create inclusive agencies, she added, if we want independent insurance agencies to be effective in the future.

Conclusion

In all, positivity will take you through the growth face, you should always find new smaller ways to improve your impute and also work on your input to improve your overall value.

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Complete Guide To Getting The Best Business Interruption Insurance

Complete Guide To Getting The Best Business Interruption Insurance

Businesses are bound to encounter situations that will try bringing it down during their period of operation. There is no way of not letting that come due to we have no control over it but there s a better way to minimize the risk.

Business interruption insurance is one of the ways business has survived over the years, you can not rely on the effort you are putting to grow your business while living other important respect that may collapse your business.

If a business encounters a covered danger, business interruption insurance can help prevent income loss. Theft, lightning, wind, fire, and lightning are the most often occurring covered risks. To find out the risks your insurer covers, make sure you read the policy documentation for your business insurance.

Imagine your company suffers damage as a result of a fire. A limit is a maximum sum that your insurer will contribute to a covered claim. Financial losses that exceed your coverage limit are often your responsibility. It would be beneficial if you selected the appropriate coverage limits for your company.

Who Are Those That Need Business Interruption Insurance?

Although business interruption insurance can be an excellent option for small business owners, it is also a valuable type of coverage for businesses that depend on physical assets (like buildings) or locations (like machinery and equipment) that are susceptible to fire, theft, wind or lighting. Businesses such as:

  1. Restaurants
  2. Retail stores
  3. Salons and spas
  4. Dog groomers
  5. Yoga studios

Contingent Business Interruption Insurance

Contingent business interruption insurance is a financial aid program that provides financial assistance in the event of loss or damage to your business. This insurance covers ongoing expenses while you look for a replacement. If your business depends on this rider:

  1. One supplier or manufacturer can supply certain materials
  2. You will need to have a few key customers that provide the majority of your revenue
  3. You might also be interested in other nearby businesses
  4. What amount of business interruption insurance coverage do I need?

Each business interruption policy has a coverage limit. This is the maximum amount that your insurance company will pay for a business interruption claim. It is essential to choose a coverage amount that you are comfortable with. You will have to pay any financial losses beyond your coverage limit. These are some of the factors to consider:

  1. What time would it take to get your business back on track after a disaster like a fire?
  2. Are your fire alarms and security systems up-to-date?
  3. What would it cost to rent office space in your locality? Is there space available?
  4. Consider your earnings projections and gross earnings to determine the appropriate coverage. The insurance policy should cover operating expenses and repairs to the business.

Who Are Those That Are Eligible To Receive Business Interruption Insurance

Most insurance companies require that your business has a commercial location to be eligible for business interruption insurance. You won’t likely be able to add business interruption insurance to the business owner’s policy if your business is located in your own home.
Your eligibility for business interruption insurance can also be affected by other factors, such as:

  1. Classification of business or industry
  2. Claims for business interruptions in the past
  3. Your location

What is Business Interruption Insurance And How To Get Started With It

The purpose of business interruption insurance, commonly referred to as business income insurance, is to shield companies from any financial losses that may result from business interruption brought on by an insured danger.

The company’s running expenses, such as rent, mortgage payments, salaries, taxes, and prospective revenue, are covered by the insurance. Other insurance plans might pay for extra costs like interim setup or staff training for the new equipment.

A common feature of business owner’s insurance for small and medium-sized enterprises is BIBI coverage. This specialized type includes general liability and commercial property coverage among other options.

Most business interruption policies require a waiting period of 48 to 72 hours before they kick in. This can be found in the policy’s restoration time, which initially lasts 30 days, but can be extended up to one year.
What are the most popular business interruption insurance policies in America?

Investopedia analyzed 35 policies from insurance companies that offer business interruption coverage to determine which ones provide the best BIBI coverage. The New York-based financial website Investopedia also evaluated each provider’s industry experience, financial stability, and customer satisfaction. These are the top-rated providers. The alphabetical order of the list follows.

1. Chubb Business and Insurance

Investopedia voted Chubb the best in claims processing after the insurance giant was ranked top of a survey of risk managers and brokers conducted by Advise. Chubb offers business owners policies to businesses with revenues up to $30 million across all 50 US states and Puerto Rico.

The basic approach can also include BIBI coverage. The insurance giant also garnered an above-industry-average customer satisfaction score in JDJD Power’s most recent small-commercial insurance study was published by JDJD Power and received an A++ rating at AM Best. This indicates superior financial stability.

2. Those Involved In Lease Payments and Rent

If a catastrophic event causes your business to shut down temporarily, you may still need to rent equipment or pay for it. Business interruption insurance will cover rental and lease payments when your business is not making any money.

3. Small and Big Farmers

Farmers’ business owner’s insurance includes business interruption coverage. This allows policyholders to receive 100% of their expected income. Farmers’ BOP, rated the best for retail business, can be customized to include 20 endorsements.

Some of these endorsements are explicitly tailored for retailers and include equipment breakdown and replacement for outdoor signage. The California-based insurer got an above-industry-average mark in customer satisfaction and a solid B++ rating for financial stability.

4. Employees Receiving Wages and Pension

You must continue paying employees to retain them even if your business closes. While your business isn’t earning revenue, business interruption insurance covers the cost of payroll. Many business interruption policies will cover up to one year’s salary for each employee.

5. Grown Up All Over The Country

Nationwide has the most comprehensive coverage for business interruption among all the assessed insurers. This is why it earned the top overall title from Investopedia. You can get BIBI coverage for damage to vehicles, aircraft, fire, wind, hail, or vandalism.

However, it does not cover losses from disruptions due to floods, earthquakes, or downed power lines. Nationwide’s BOP is for companies with less than 100 employees and less than $5 million in annual revenue. It scores well in customer satisfaction and has an A+ rating for financial stability.

6. Paying Of Taxes

Even though finances may be tight during a temporary shutdown, you still need to pay quarterly and annual tax obligations. Even if your company is not generating revenue, business interruption insurance will ensure you have enough money to pay taxes.

7. Large State Farm

State Farm’s BIBI coverage was best for food service businesses. It covers income loss due to sewer backups and food spoilage. The policy also covers companies closed by the government because of food contamination. It pays for advertising costs.

State Farm received the highest rating possible for financial stability, A++, and the second-highest customer satisfaction score from JDJD Power’s survey. For lender payments, you will still have to pay your loans if your company has loans.

8. The Hartford Business Insurance

Hartford’s business interruption insurance offers many features that landscapers and businesses specializing in outdoor care need. These features include snow plough operations insurance and herbicide and pesticide application coverage. Hartford’s BIBI policy offers bundle discounts and covers theft, fire, wind, wind, and theft. The insurer’s A+ rating assures financial stability.

9. For Lost Revenue In Business

Business interruption insurance can help you compensate for any revenue lost because your business cannot serve customers, sell products or work with clients. If you don’t have enough money, this policy will ensure that your temporary shutdown doesn’t become permanent.

10. New and Old Travelers

The Travelers’ Business Income and Extra Expense (BIEE) policy protect professional service businesses. It includes coverage for data and media loss and the replacement of business income if a major supplier is disrupted. You can add dependent property coverage to your company.

This covers business income that is lost due to disruptions by significant suppliers. It also provides extended coverage for business income, which covers the time after business reopens and customers are not fully back. This policy covers fire, theft, vandalism, vehicle damage, and other perils.

Bottom Line

I made sure I provided you with all the information you need about business interruption insurance and how to make the best out of it. Understanding this will help you make a better decision and help you get the best offer.

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