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Forbes
14 hours ago
- Business
- Forbes
How Structured Trade Finance Can Help Address Africa's USD Liquidity Crisis
Meelan Gupta | Global finance & treasury pro w/ 25+ years' experience in Africa, the Middle East, Europe & Asia | GeBBS Healthcare Solutions Many African economies face persistent shortages of foreign exchange (FX), particularly U.S. dollars, which can impair their ability to fund imports, pay off debt and maintain stable macroeconomic conditions. The issue is especially severe in nations reliant on commodity exports or with narrow industrial bases. But an increasingly viable solution is emerging—structured trade finance using standby letter of credit (SBLC)-backed bill discounting. I work as a financial advisor and strategist with deep involvement in cross-border trade and structured finance across emerging markets. I have worked alongside African financial institutions, importers and development partners to design liquidity-enhancing trade finance structures. My experience spans engagements involving SBLCs, particularly for FX-constrained economies. This direct exposure to the operational and regulatory intricacies of African trade flows has informed my advocacy for structured solutions like SBLC-backed bill discounting as pragmatic mechanisms for maintaining macroeconomic stability and ensuring trade continuity. Understanding The FX Crunch Foreign exchange shortages are not new to Africa. Countries like Nigeria, Ghana and Kenya frequently struggle to access dollars, especially during periods of global economic stress (registration required). These shortages are exacerbated by fluctuating commodity prices, limited diversification and capital flight. For example, Nigeria's dollar crisis in 2014 followed a steep drop in global oil prices. More recently, the Covid-19 pandemic caused a $5 billion capital outflow from the continent, intensifying pressure on foreign reserves and curbing trade flows. The impact goes beyond macroeconomic figures—it disrupts sectors like agriculture and manufacturing. In Kenya and Nigeria, crop yields have fallen due to delayed fertilizer imports. In Egypt, textile mills have reduced output due to the unavailability of imported raw materials. These are not isolated incidents—they're systemwide consequences of a fragmented FX ecosystem. A Practical Model: SBLC-Backed Bill Discounting One proven, structured solution is the standby letter of credit-backed bill discounting model. This mechanism combines local bank credit enhancement with international bank liquidity to bridge the FX gap. Here's how it works, based on my experience: • A local firm issues an invoice to its client and presents it to its local bank for discounting. • Instead of paying USD directly, the local bank issues an SBLC to a correspondent bank that gives USD liquidity. • The international bank provides USD liquidity against the SBLC. • This liquidity is then used to pay offshore suppliers, while the local client eventually repays in local currency. This model can be used across industries to fund procurement and meet offshore obligations, without depending on a central bank or informal markets. In my firm's work with clients, we were able to do multiple transactions. Benefits Across The Board For banks, this model helps limit direct FX exposure and can deepen international correspondent relationships. For businesses, it eliminates reliance on central bank allocations or black-market FX premiums, helping improve supply chain continuity and project delivery timelines. For the economy, it can contribute to more stable FX markets, help lower inflationary pressure and promote investor confidence. Why It's Scalable My firm has concluded a deal in Nigeria, but the model is scalable across many African economies. South Africa, Ghana, Kenya and Egypt—with their structured banking systems and active trade links—are well-positioned to adopt similar solutions. The key enablers? Regulatory harmonization, credit guarantee schemes and collaboration between commercial banks and fintech platforms. Technology As An Enabler Digital platforms, artificial intelligence (AI)-driven credit scoring and blockchain-based documentation can further streamline trade finance. By automating invoice validation and tracking FX exposures in real time, these tools can help reduce friction and increase transparency in multicountry deals. Considerations And Caveats For SBLC-Backed Bill Discounting While SBLC-backed bill discounting can ease FX shortages and support trade, it comes with important caveats: SBLC-backed discounting can be a valuable tool but should be used selectively, with strong legal, financial and policy oversight. A Call To Action For Policymakers To support structured trade finance, African governments and regional blocs must: • Standardize trade finance regulations across borders. • Recognize SBLCs and similar instruments as eligible collateral. • Support credit enhancement and FX guarantee mechanisms through development finance institutions. A Call To Action For Finance Professionals Africa's FX shortage is a corporate challenge—and a major opportunity for finance professionals. Here's how you can respond: SBLC-backed discounting is a tool to help drive returns and resilience. Finance professionals can lead the charge in bridging Africa's liquidity gap while opening new markets and mitigating global risk. Final Thoughts Africa's FX liquidity challenges won't disappear overnight—but structured trade finance offers a road map to greater resilience. SBLC-backed bill discounting is one such tool that can potentially help stabilize trade flows, empower businesses and restore investor faith. For finance professionals, this is the moment to step in—not just as financiers, but as enablers of stability and growth in one of the world's most dynamic yet underserved markets. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Yahoo
5 days ago
- Business
- Yahoo
For clients with disabilities, proper communication is key
Trust is always an issue for clients trying to find a financial advisor. But that can be exacerbated when the client has a disability. Britta Koepf, the owner of Tranquil Path Financial Planning, said she has found success building that trust through thoughtful communications and accommodations with clients. Recently, her efforts landed her two neurodivergent clients that appreciated her efforts. "They trusted me to the point that they didn't want to ever have a different advisor," she said. "They have struggled for their whole life with communicating, and being able to adapt my communication to fit better needs was amazing." According to the U.S. Centers for Disease Control and Prevention, around 28.7% of adults in the United States live with some type of disability. According to a 2023 report by the Financial Health Network, one-third of disabled adults in the country struggle to pay their expenses and incur debt. A 2021 study by AARP also found that about half of the caregivers of disabled family members said they have experienced financial difficulties. READ MORE: 'The threat is existential,' but these leaders are staying the course on DEI Many caregivers or disabled clients themselves need help planning for expensive medical needs or early retirement. Aubrey Williams, a financial advisor at Open Path Financial, mostly works with neurodiverse clients, particularly those with ADHD and autism, focusing on crisis management and planning for financial independence. "They might be very successful in their profession," Williams said. "But in [their] personal life, where there wasn't a structure, it was up to [them] to manage [their] finances, so [their] personal finances were not in good shape." Establishing understanding Koepf said that having flexibility in planning is important with disabled clients because they may need to change appointments at the last minute, often for medical reasons. She emphasized that financial advisors should never make assumptions. Financial advisors could start by understanding clients' conditions and adapt their communication method accordingly. During the process, it's important to not question clients' medical spending and respect their decisions. "Regularly ask 'Hey, is this OK?' and if what you're doing is the right thing to do," Koepf said. "They're like any other client. They know what they're doing, [so be] open to feedback that they might need assistance with things and some accommodations." Williams said that it can be difficult for neurodiverse clients to start financial planning, even when it comes to small tasks like managing bills. He said financial advisors can change that by actively involving clients in the process, starting with reviewing clients' transactions to help them understand each expense, and then allocate appropriate funds and make adjustments. READ MORE: Do clients trust you? Depends on who they — and you — are He said that financial advisors can also help clients build confidence by practicing scenarios such as negotiating bills with service providers. "They gain confidence in their ability to just take in what's happening," Williams said. "Then eventually, once that trust is there, we start making changes." Have different accommodations Michael Allen Davis, a financial planner at Legs Financial, said that financial advisors should provide comprehensive accommodations for disabled clients. He recommended financial advisors install tools like screen readers on their websites for blind clients and offer flexible communication channels. When advisors are meeting with clients in person, meeting spaces should also have ramps, elevators and accessible restrooms. READ MORE: An ABLE primer: How advisors can use 529A plans for clients with disabilities "Try to do your best to accommodate people," Davis said. "Sometimes, you don't know until you come across it, and you just try to take those steps to mitigate that in the future." Koepf added that financial advisors can identify necessary accommodations by sending accessible questionnaires to clients. "Just asking that question helps people know that you're understanding and acknowledge that they might have disabilities," Koepf said. Financial strategies Davis said disabled clients could consider establishing Achieving a Better Life Experience (ABLE) accounts to create a safety net. Individuals with disabilities before age 26 — or age 46 starting in 2026 — can contribute up to $19,000 annually into these tax-advantaged savings and investment accounts without impacting their eligibility for Medicaid or Supplemental Security Income. However, once the account has more than $100,000, it might impact their eligibility for SSI. READ MORE: How advisors can use ABLE accounts for disabled clients He added that clients could also create a special needs trust, which doesn't have contribution limits, but there aren't tax advantages to it. Davis said that when clients don't have a special needs trust, the financial advisor often acts as a "middle person" between the family and the legal team to set it up. The advisor's role is to clearly communicate the family's goals and ensure they're legally feasible. "It's just always being upfront and honest in conversations of what you're there for and you want to be able to help," Davis said. "It's important to make sure that what you're trying to accomplish with the plan is in line with what they're writing up in the trust." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
6 days ago
- Business
- Fast Company
Is it time to bring on a financial advisor? 13 factors to consider
As a business evolves, there often comes a point when leaders need expert guidance to manage complex finances, plan for growth, and protect what they've built. While a professional's qualifications are important, there are many other factors to weigh when choosing a professional in the finance world that you can trust. It's crucial to find someone whose approach, ethics, and understanding of your business truly align—and when you do, it can have a positive impact on your company's long-term success. To help you make this important decision, Fast Company Executive Board members share 13 key questions to think about before inviting a financial advisor into your inner circle. 1. DO YOU HAVE THE KNOWLEDGE AND BANDWIDTH TO MANAGE THE BUSINESS FINANCES? A business leader must realize when they don't have the bandwidth to follow their financial investments and financial decisions on their own. Leaders hire us to follow the ramifications of various factors that are happening daily—and to watch out for their best interest—so they can spend their time doing whatever they need to do directly. – Richard McWhorter, SRM Private Wealth Subscribe to the Daily newsletter. Fast Company's trending stories delivered to you every day Privacy Policy | Fast Company Newsletters 2. IS THERE ALIGNMENT IN VALUES AND APPROACH? Select a financial advisor whose professional ethics, transparency, and approach align with the company's strategic goals and culture. Financial advisors have a profound influence on strategic decisions; therefore, leaders should thoroughly vet candidates, focusing on their demonstrated integrity, accountability, and proven history of discretion and sound judgment.- Britton Bloch, Navy Federal Credit Union 3. WHAT ARE THEIR DATA PROTECTION PROTOCOLS? Ensure they have robust data protection protocols for your sensitive financial information. Ask about their cybersecurity measures, backup systems, and how they handle data breaches before sharing confidential business details. – Chongwei Chen, DataNumen Inc. 4. DO THEY HAVE A FIDUCIARY DUTY TO THEIR CLIENTS? Trust and transparency are key. Business leaders should ensure the advisor has a fiduciary duty, meaning they are legally obligated to act in the client's best interest. This helps avoid conflicts of interest and ensures financial advice is aligned with long-term goals, not personal gain. – Maria Alonso, Fortune 206 5. IS THERE TRUST, TRANSPARENCY, AND A FOCUS ON LONG-TERM STRATEGY? One key factor business leaders must consider is trust and alignment of values. A financial advisor should not only have expertise but also understand the company's goals and risk tolerance. Their advice must support long-term strategy, not just short-term gains, while maintaining transparency and integrity. – Stephen Nalley, Black Briar Advisors 6. ARE THEY ADEPT AT USING AND INTERPRETING NUMBERS, SPREADSHEETS, AND DATA? Math is just another language, so make sure all members of your leadership team share the same objectives and understanding of the business. Numbers and spreadsheets by themselves are merely tools to organize data and help guide decisions, so choose a financial partner adept at using those tools to accelerate the growth of your business and not slow it down. – Tim Maleeny, Quad 7. DO THEY UNDERSTAND YOUR BUSINESS'S UNIQUE PATTERNS AND CHALLENGES? Ensure they understand your business's unique cash flow patterns and challenges. Many advisors excel with traditional portfolios but lack experience with irregular revenue cycles. Ask them to walk through scenarios specific to your situation, such as seasonal revenue dips or growth capital needs. If they push generic solutions without understanding your operational realities, keep looking. – Joynicole Martinez, The Alchemist Agency advertisement 8. CAN THEY SUCCESSFULLY INTEGRATE PERSONAL GOALS AND FAMILY DYNAMICS INTO WEALTH PLANNING? Business leaders should choose a financial advisor who can align wealth planning with personal goals and family dynamics. The right advisor helps navigate emotional, financial, and governance complexities—especially during transitions like a sale or succession. – Mark Valentino, Citizens 9. WHAT ARE YOUR EXPECTATIONS? One critical factor business leaders must consider when bringing on a financial advisor is being crystal clear in expressing the expectations you have for the role. Not only must they be aligned with your vision, but you must also be clear with them on what goals you are trying to achieve (improve margin, cut costs, improve ROI). Your advisor needs clarity on how you view success. – Rich DePencier, Brand Growth Accelerators 10. CAN THEY SUPPORT YOUR COMPANY'S LONG-TERM GOALS? One important thing to consider is whether the advisor truly understands your business goals, not just your numbers. It's not just about managing money, but about finding someone who can offer guidance that fits your long-term vision. Trust and clear communication matter just as much as expertise. – Gianluca Ferruggia, DesignRush 11. DO THEY HAVE EXPERTISE IN THE AREAS THAT MATTER MOST TO YOUR BUSINESS? When bringing in a financial advisor, make sure they have expertise in the areas most critical to your specific business, whether it's fundraising, FP&A, or debt management. It's hard to find someone who excels in all these areas. For startups, which are typically leaner teams, you also need someone who can dive into details and roll up their sleeves, not just stay high-level. – Alejandro Botto, Turing 12. HOW DO THEY DEFINE THEIR ROLE, GOAL, AND METHODS? Listen to their language and how they express and define their role, their objectives, methods, and processes. Listen for what matters most to them. Do they see themselves as operating within a circle or as a separate point on the circumference of the circle? What does the content of what they speak about say about their focus of attention? What is their process-to-people ratio of focus? – Jay Steven Levin, WinThinking 13. DO THEY KNOW YOUR INDUSTRY AND BUSINESS MODEL? Business leaders should consider the financial advisor's knowledge of the industry and business model to be of primary importance. The advisor must have not only strong financial capabilities but also knowledge of the sector and its potential unique challenges and opportunities. This will ensure they provide advice that's relevant and tailored to the business's growth trajectory. – Asad Khan, LambdaTest Inc.
Globe and Mail
21-07-2025
- Business
- Globe and Mail
Raymond James Welcomes Experienced Financial Advisor Managing $750 Million in Georgia
ST. PETERSBURG, Fla., July 21, 2025 (GLOBE NEWSWIRE) -- Raymond James recently welcomed financial advisor Robert Chanin to Raymond James & Associates (RJA) – the firm's employee advisor channel – according to Gregg Stupinski, South Atlantic regional director for RJA. Based in Macon, Georgia, Chanin provides clients with comprehensive wealth management, specializing in high-net-worth clients. He arrives from Stifel, where he previously managed approximately $750 million in client assets. 'At this point in my career, aligning with Raymond James allows me to deliver a broader suite of capabilities to meet the increasingly complex needs of my high-net-worth clients,' said Chanin. 'The firm's extensive resources and planning infrastructure enhance my ability to provide the white glove service my clients expect.' Chanin began his career in 1979, bringing over 45 years of industry experience to his role as managing director. His experience is backed by a bachelor's degree in business administration from the University of Georgia. 'Robert's decision to join Raymond James reflects the firm's continued appeal to seasoned advisors seeking the freedom to serve their clients on their own terms, without compromising on resources or support,' said Stupinski. 'His dedication to personalized wealth management aligns perfectly with our client-first culture, and we are proud to welcome him to our Macon branch.' About Raymond James & Associates Raymond James & Associates, Inc. (RJA), member New York Stock Exchange/SIPC, is an industry leader in financial planning and wealth management services for individuals, high-net-worth families, corporations and municipalities. RJA is a wholly owned subsidiary of Raymond James Financial, Inc. (NYSE-RJF), one of the nation's premier diversified financial services companies with advisors throughout the United States, Canada and overseas. Total client assets are approximately $1.58 trillion as of May 31, 2025. Additional information is available at
Yahoo
21-07-2025
- Business
- Yahoo
How to find the best annuities with low fees
Annuities can be a solid way to secure guaranteed income in retirement. However, they remain notoriously complex, particularly when it comes to comparing fees. Unlike ETFs or mutual funds, where fees are publicly available and easy to compare, annuities are murky. There's no widely used, public-facing comparison engine you can use to compare annuities apples to apples — especially across types and providers. That makes it tough to know whether you're getting a fair deal. But with the right strategy, you can cut through the noise and zero in on annuities that fit your goals and won't hit your budget with hidden costs. Here's how to do it. How to find the best annuities with low fees Understanding annuities and comparing them effectively can be difficult. Many different types of annuities exist, and each comes with its own set of rules, fees and benefits. Unlike other financial products, there's no one-stop-shop for comparing annuities in a clear, side-by-side format. But by following some key tips, you can make the process simpler and more transparent. 1. Work with a financial advisor This is one of the fastest and most effective ways to get clarity on what you're buying — assuming you find a good advisor to work with. Many fee-only financial professionals have access to software platforms like Cannex or Morningstar Annuity Intelligence that aren't available to the general public. 'I use proprietary software and I also have relationships with insurance companies where I can compare not just the annuity itself but fees, too,' says Nicholas Bunio, CFP and owner of Bunio Consulting. 'But there's not really any tool like that available to the public.' Good advisors will also evaluate whether an annuity even makes sense for your situation in the first place. They can help you decide between a fixed annuity, an index annuity, a variable annuity or something else entirely. And they'll tell you when it's smarter to avoid annuities altogether. 'Personally, I would hire a financial advisor,' says Bunio. 'I would not get an annuity on your own.' One caveat: Not all advisors are fans of annuities. Even certified financial planners (CFPs) vary wildly in their opinions. Some flat-out avoid them. So if you're considering working with an advisor, ask upfront whether they handle annuities, how knowledgeable they are about the products and how they're compensated. Compare advisors: Bankrate's list of the best financial advisors 2. Work with an insurance agent or broker Licensed insurance agents can help you comparison shop across multiple carriers if they're independent. Some agents are 'captive,' meaning they only sell products from one company, like New York Life or MassMutual. Others are affiliated with large broker-dealers and can access dozens of insurers. 'While the CFP designation comes with some foundational knowledge on annuities, I find many CFPs to be under-educated on annuities,' says Michael Baker, CFP and founding member of Vertex Capital Advisors. He explains that even if you're working with a CFP, that individual still needs to be licensed in order to sell annuities. 'A great question for consumers to ask anyone discussing annuities is 'What type of annuities are you licensed to sell?'' says Baker. 'They'll need either an insurance license for fixed, fixed index or income contracts, or a securities license to write variable or RILA contracts.' An experienced broker knows which carriers have competitive rates, which products come with the lowest fees and how different contract riders affect overall cost. That said, agents often earn commissions based on the products they sell, which can sometimes introduce conflicts of interest. So make sure the agent's recommendations align with your best interests. 3. Get a free quote from IncomeSolutions If you're looking specifically for an income annuity — either a single-premium immediate annuity (SPIA) or a deferred income annuity — is a solid place to start. It's an online marketplace where you can compare side-by-side quotes from major insurers without entering a phone number. The platform incorporates a flat, one-time fee of 2 percent for retail buyers. This fee is clearly disclosed during the transaction process, ensuring there are no hidden costs. But again, IncomeSolutions only works if you're shopping for income annuities. (Income annuities prioritize converting a lump sum into regular payments, potentially for life.) If you're eyeing a variable, indexed or some other type of annuity, this site won't help you. 4. Compare quotes on your own If you prefer to take a DIY approach, you can compare quotes independently. This process can be more time-consuming but it's an option if you're prepared to invest the effort. Start by visiting the websites of the best annuity companies, such as MassMutual, Pacific Life, Lincoln Financial, Gainbridge, Nationwide and Allianz. On their product pages, you'll find information on the different types of annuities they offer. You can often download brochures or prospectuses with details on each product's features and fee structures. Next, examine the fee structures outlined in these documents. Look for the 'Fees and Expenses' section in the brochure or prospectus. Pay attention to various types of charges, as well as fees for any optional riders or benefits, such as a guaranteed income rider or death benefit. It's also important to consider surrender charges. These penalties are applied if you withdraw funds from the annuity before a specified period, often the first six to eight years of the contract. Some annuities allow you to take out a percentage of your money each year — usually 10 percent — without penalty, but you should always be clear about the terms before you commit. If the online materials seem insufficient, don't hesitate to call the insurance company directly and request a 'full illustration' or a sample contract. A complete illustration will display all fees, both base and optional, along with surrender charge details and hypothetical scenarios illustrating how fees may impact your returns over time. What to look for when comparing annuities Before you compare fees, you need to know what kind of annuity you're looking at. Here's a quick breakdown. Fixed annuities: Pays a guaranteed interest rate for a set period. No annual fees. Best for low-risk tolerance. Indexed annuities: Returns of indexed annuities are tied to a market index like the S&P 500. Typically caps your returns and protects against downside loss. Variable annuities: Invests in sub-accounts similar to mutual funds. Higher risk, higher potential returns — and much higher fees. If your priority is low fees, fixed and multi-year guaranteed annuities (MYGA) are your best bets. 'Fixed annuities and fixed index annuities don't really have any fees unless you add some type of rider,' says Bunio. Companies like Gainbridge offer straightforward products with no annual fees — just a penalty if you withdraw early. On the other hand, variable annuities typically charge between 2 and 3 percent annually, but some no-frills options (like those from Nationwide) come in under 1.5 percent. Bunio also mentioned RILAs, or registered index-linked annuities, which are deferred annuities tied to a market index like the S&P 500. They offer higher returns than indexed annuities but come with some downside risk, though not as much risk as a variable annuity. 'Those don't really have fees either,' says Bunio, though he acknowledges that some advisors may charge a small fee in order to make changes to the indexes within the annuity. 'But that's more of an asset under management fees, not an insurance company fee,' he says. 'And some advisors don't charge that fee at all.' Key things to consider when comparing annuities Fees: What are the annual charges? Do they increase over time? Surrender charges: How long is the penalty period if you need to access your money? What percentage will you be charged? Insurer financial strength: Choose a highly rated insurance company with a rating of A or better from rating agencies like AM Best or Standard & Poor's. Interest rate or index performance cap: For fixed or indexed annuities, this determines how much you can actually earn. One last thing to watch out for is riders. These optional add-ons — like guaranteed lifetime income, enhanced death benefits or upfront bonuses — often sound great but come at a cost. Only add them if you completely understand what you're getting and why you need it. Get matched: Find a financial advisor who can help you maximize your investments Bottom line Unfortunately, there's no one-click way to compare all your annuity options, especially across different types, like fixed, indexed and variable annuities. The most effective route is working with a trusted advisor or annuity broker who can access institutional-grade comparison tools and tailor recommendations to your situation. If you're going solo, stick to straightforward products like fixed annuities or MYGAs, and avoid anything you don't fully understand. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
