Tag: commercial papers

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Blog Editor's pick Investor Education

 How to Reinvest Smarter: The Hidden Power of Compounding in Fixed-Income Investing

The secret to wealth isn’t just earning — it’s reinvesting.

Every time you roll your matured investment into a new deal, you’re quietly building momentum. Compounding isn’t reserved for stock portfolios; it’s the quiet engine that drives predictable growth, even in fixed-income investing.

Let’s start with a simple truth: money that sleeps loses power.

When your debt note or commercial paper matures, you face two choices; withdraw your returns or put them right back to work. The first gives you comfort; the second builds your wealth.

Here’s why reinvesting is a smarter move:

1. You shorten the time between returns.

Each reinvestment keeps your capital compounding continuously. You’re not starting from zero each time, your returns layer over time, even across short tenors.

2. You maintain momentum.

Idle money is dead weight. But when you keep it in rotation, your wealth compounds faster than you think. You go from one 12% deal to another 13% note without losing traction.

3. You reduce emotional investing.

Reinvestment turns discipline into strategy. Instead of reacting to every new deal emotionally, you move methodically, confident in your long-term plan.

4. You build predictable growth.

Fixed-income investing on GetEquity is already designed for stability. But when you reinvest consistently, your average yield strengthens. It’s like earning interest on top of interest, quietly and strategically.

Case Example:

Say you invest NGN1,000,000 in a 6-month commercial paper at 13%. You earn NGN65,000 after tax. If you immediately reinvest both principal and returns into another 6-month deal at a similar rate, your next payout increases slightly, not by luck, but by compounding.

It’s a small shift with a long-term payoff. That’s the real edge: consistency.

This November, take a second look at your matured investments on GetEquity. The compounding effect isn’t magic, it’s habit. Reinvesting is how you turn small wins into quiet wealth.

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Blog Credit Editor's pick Investor Education New Feature

Understanding Credit — And How GetEquity Is Redefining It

When most people think of credit, they think of borrowing money. But at its core, credit is built on “trust” the trust that you can access funds now and repay them later, usually with interest.

Credit drives modern economies. It helps businesses expand and gives individuals flexibility when they need it most. But it also comes with trade-offs, especially for investors who might need liquidity without losing their positions.

That’s where GetEquity Credit steps in.

Instead of selling your investment during an emergency, you can now use it as collateral. This way, your investment continues to earn for you, while you access the funds you need.

Interest is calculated daily, and repayment is flexible; you can pay back anytime before the tenor ends.

It’s a smarter way to manage liquidity without breaking your investment strategy.

Credit, redefined.

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Blog Editor's pick New Feature Press Releases

 Introducing Credit on GetEquity: Unlock Credit with Your Investments

What if your investments could do more than just grow over time?

At GetEquity, we’ve partnered with Carrot Credit to make that possible. Now, you can request credit directly from your GetEquity app – using your existing investments as collateral. No need to sell your investment. No need for long paperwork. Just smart, fast, and secure access to credit when you need it.

Here’s everything you need to know about how the feature works and how to get started.

What Is the GetEquity Credit Feature?

The new Credit feature allows you to access credit by using your investments (Fixed income investments e.g. commercial papers, treasury bills, etc. on GetEquity as collateral. It’s designed for investors who want liquidity without liquidating assets; whether you’re covering a personal emergency, bridging cash flow gaps, or funding new opportunities.

With this feature, your investments remain intact while they serve as a guarantee for the loan. Once approved, funds are disbursed within 24 hours.

This feature is in partnership with Carrot Credit, a digital lending partner that provides flexible loan options backed by real assets.

How It Works: A Step-by-Step Guide

Here’s how to request credit on the GetEquity app:

1. Open Your GetEquity App

Ensure you’re using the latest version.

2. Navigate to the “More” Section

From your dashboard, tap “More” to access extended features.

3. Select “Credit”

Tap on the Credit option to start your loan request.

4. Click “Request Credit”

This initiates the credit process.

5. Provide Loan Details

  • Select your loan duration.
  • Choose a loan reason from the options provided.

6. Set Loan Amount

  • Select investments (Fixed income investments e.g. commercial papers, debt notes etc) you want to use as collateral.
  • Choose one or more commercial papers.
  • Enter the number of investment tokens you want
  • You can only use naira investments you own.

7. Select a Loan Provider

Select Carrot credit as the available loan provider listed.

8. Review Your Loan Summary

Carefully go through the summary, including interest rate, duration, and repayment terms.

9. Add Full Name

Enter your full name. Please review the User Agreement and Privacy Policy before proceeding. Kindly provide your full name as registered on your GetEquity profile.

10. Select Account for Withdrawal

 Add a new bank or select from the existing list of beneficiaries. 

11. Submit Your Request 

Once submitted, your application is reviewed. If you meet the criteria, funds are credited within 24 hours.

What You Should Know

  • Collateral Limit: You can use investments you currently own as collateral. These can be from one or multiple companies. You can access up to 80% of the value of these investments in credit.
  • Interest rates: 4% monthly on the outstanding amount.
  • Repayments: your interest is calculated daily at a 4% per month. You can choose to repay at anytime before the end of the tenor and only pay back the accrued interest
  • Penalty for Late Repayment: If you have defaulted on your repayment your assets are automatically liquidated and your credit line is paid off 

Why Use This Feature?

  • Preserve Your Portfolio: Stay invested while gaining access to liquidity.
  • Quick Disbursement: Funds are credited within 24 hours..
  • No Paperwork: Fast, secure, and easy to use.

Frequently Asked Questions (FAQs)

1. Can I use more than one type of investment as collateral?

No, you can only leverage on your naira fixed income investments like commercial papers, treasury bills etc. 

2. How much can I borrow?

With Carrot credit, you can leverage up to 80% of the value of the investment you select as collateral.

3. How long does it take to receive the loan?

Your loan will be credited within 24 hours.

4. What happens if I don’t repay on time?

If you have defaulted on your repayment your assets are automatically liquidated and your credit line is paid off 

5. Is this feature available to all GetEquity users?

Yes, as long as you have Naira Fixed Income investments e.g. commercial papers, treasury bills etc. on the platform.

Ready to Get Started?

Open your GetEquity app, head to the Credit section, and see what your portfolio can unlock.

Smart credit access, powered by Carrot Credit.

Categories
Blog Editor's pick Investor Education

When Is the Best Time to Invest in a Fixed-Income Deal?

Timing matters but maybe not the way you think.

When it comes to fixed-income investments like commercial papers, treasury bills, or debt notes, the biggest question many investors have is: “Should I wait for a higher rate?” or “What if something better comes along next week?”

Here’s the real answer: the best time to invest is when your money would otherwise be sitting idle.

Let’s unpack that.

Idle Cash Is Losing Value

If your money is just sitting in a regular savings account or worse, in a current account, it’s probably earning next to nothing. Meanwhile, inflation is eroding its value bit by bit. In that case, earning any steady return through a fixed-income investment is already a win.

Stop Chasing the “Perfect” Rate

A lot of people make the mistake of holding out for the highest possible rate. But here’s the catch, while you wait for something better, you’re missing out on consistent returns.

Example:

Let’s say you’re offered 22% per annum today for 180 days. You hesitate, thinking 25% might show up soon. Two weeks go by and nothing shows up. That’s two weeks your money did nothing.

You could’ve locked in a solid deal and already started earning.

Look at Timing, Not Just Rate

Ask yourself:

  • Do I need this money in the next 3–6 months?
  • Is this rate in line with market trends?
  • Is the issuer reputable and verified?

If the answers make sense, don’t overthink it. Most fixed-income products on platforms like GetEquity go fast for a reason, investors understand the value of compounding time with steady interest.

Don’t Miss Out on Compounding Windows

Every time you wait too long to invest, you’re shrinking the number of investment cycles you can complete in a year. Think of your money like a worker. The more shifts it takes, the more it earns. Waiting around means fewer shifts.

Final Thoughts

The best time to invest in fixed income isn’t when the rate is perfect, it’s when your money is ready and the deal is good. In a high-inflation economy, sitting out is often riskier than getting in.

Make your capital work. That’s how real wealth builds.

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Investor Education

Commercial Papers, Mutual Funds and Treasury Bills 

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In our commitment to empowering you with investment knowledge, we are dedicated to helping you understand three investment vehicles available on GetEquity: Commercial Papers, Treasury Bills, and Mutual Funds. Each of these instruments offers distinct benefits and considerations, catering to different investment objectives and risk profiles, and understanding them will help you navigate the investment landscape effectively and maximize your investment goals.

Commercial Papers (CPs)

Commercial Papers (CPs) are short-term debt instruments issued by companies to raise funds to meet short-term obligations like capital-intensive inventory. They typically have maturity periods ranging from 6 months to 1 year.

Pros

  • CPs are highly liquid, meaning they can be easily sold in the secondary market before maturity.
  • They are generally considered low-risk investments as they are typically issued by credit-worthy companies with high credit ratings.
  • Commercial Papers often offer higher yields and competitive returns.

Risk

  • There is a risk of default if the issuing company faces financial challenges and is unable to pay back the debt.
  • Changes in the prevailing interest rates can impact the prices in the secondary market.

Why you should invest in Commercial Papers

Investing in CPs provides a balance of liquidity and low risk and is suitable for investors seeking to diversify their investment portfolio while managing liquidity needs and earning competitive returns.

Treasury Bills (T-Bills)

Treasury Bills are short-term government securities issued to finance government expenditure. They are backed by the full faith and credit of the issuing government and typically have maturity periods of less than one year.

Pros

  • Treasury Bills are considered one of the safe investments because they are backed by the government, making them virtually risk-free.
  • T-bills offer predictable returns with fixed interest rates.
  • Treasury Bills being government-backed securities carry minimal to no default risk

Risk

  • Treasury bills generally offer lower returns compared to Commercial Papers.
  • Fluctuations in interest rates can affect the prices before maturity.

Why should you invest in Treasury Bills?

Treasury Bills are ideal for investors seeking a secure investment option for capital preservation with minimal risk and stable returns. They provide liquidity and safety, making them suitable for short-term financial planning and cash management.

Mutual Funds

Mutual Funds pool money from multiple investors to invest in diversified portfolios of stocks, bonds, and other securities managed by professional fund managers, they offer investors access to a diversified portfolio with potentially higher returns than individual investments. There are different types of Mutual Funds like Equity Funds, Bond Funds, Money Market Funds, and Index Funds which offer diversification across different asset classes.

Pros

  • Mutual Funds help you diversify your investment portfolio as the maturities depend on the type of mutual fund. This helps to spread the risk across multiple assets and reduces the impact of individual asset performance.
  • Mutual Funds are managed by experienced fund managers who help you make informed investment decisions based on research and market analysis.
  • Investors are able to gain access to diversified portfolios without needing to manage their individual investments.

Risk

  • Despite mutual funds being diversified, they are still subject to market fluctuations and interest rates.

Why you should invest in Mutual Funds

Mutual Funds are ideal for investors looking to not only diversify their investment portfolio but also want to have these investments managed by investment managers. They provide a convenient way to access a broad range of investment opportunities that are aligned with specific investment goals and risk appetites.

In conclusion, choosing the right investment option depends on your financial goals, risk appetite, and investment objectives. Commercial Papers, Treasury Bills, and Mutual Funds each offer unique benefits and considerations. Whether you prioritize liquidity, safety, or diversification, GetEquity provides a range of investment options to meet your needs.

Explore these investment opportunities on GetEquity and let your money work for you.

Happy Investing!!!