Accounting Rate Of Return Is Based On Cash Flow ISUSU – An Unknown Route to Compounding Investment

You are searching about Accounting Rate Of Return Is Based On Cash Flow, today we will share with you article about Accounting Rate Of Return Is Based On Cash Flow was compiled and edited by our team from many sources on the internet. Hope this article on the topic Accounting Rate Of Return Is Based On Cash Flow is useful to you.

ISUSU – An Unknown Route to Compounding Investment

ISUSU is an independent African investment scheme that thrives on savings, investments with compound interest and collateral-free lending to rural residents. It is based entirely on frugal collections. As the name suggests, no definition is available for its meaning, yet it serves as a financial backbone where normal banking is unavailable or undesirable. It can be operated by any group of persons.

There are no government regulations to guide its work but rather it thrives on the discretion of partners, age groups, families or cooperatives. It is a form of banking service yet most of the players are not book literate but accounting gurus. Among Africans it remains a creditor of last resort and a commercial enterprise highly protected by unwritten rules and customs.

A more flourishing investment scheme in rural areas funds grassroots economic activity. As members make regular periodic contributions, large amounts of funds are made available. These funds are allocated to those who have booked the loan. These can be members or outsiders. However, every interested borrower must be backed by a financial member. In extreme cases, collaterals are demanded but such cases do not arise regularly as everyone lives in the same environment.

Members of this ISUSU group are encouraged to save and invest simultaneously. These savings and investments generate 5-10% return on investment every month. Here are other benefits of business-

  • You can choose your personal investment rate and periodic interval that suits you. It is 4 days interval, weekly, bi-weekly and monthly.
  • It offers higher interest returns where your capital is equally safe.
  • Entry and exit requirements are less stringent and open.
  • It is a standard store of wealth, provides regular cash flow, protects against inflation and is highly liquid.
  • This investment is based on the compound interest rate of return. The higher your periodic savings, the higher the interest you accrue at the compounding rate.
  • It serves as an emergency fund for both members and outside borrowers.

Interestingly, this business is not taxed by the government.

Video about Accounting Rate Of Return Is Based On Cash Flow

You can see more content about Accounting Rate Of Return Is Based On Cash Flow on our youtube channel: Click Here

Question about Accounting Rate Of Return Is Based On Cash Flow

If you have any questions about Accounting Rate Of Return Is Based On Cash Flow, please let us know, all your questions or suggestions will help us improve in the following articles!

The article Accounting Rate Of Return Is Based On Cash Flow was compiled by me and my team from many sources. If you find the article Accounting Rate Of Return Is Based On Cash Flow helpful to you, please support the team Like or Share!

Rate Articles Accounting Rate Of Return Is Based On Cash Flow

Rate: 4-5 stars
Ratings: 6997
Views: 6654749 7

Search keywords Accounting Rate Of Return Is Based On Cash Flow

Accounting Rate Of Return Is Based On Cash Flow
way Accounting Rate Of Return Is Based On Cash Flow
tutorial Accounting Rate Of Return Is Based On Cash Flow
Accounting Rate Of Return Is Based On Cash Flow free
#ISUSU #Unknown #Route #Compounding #Investment

Source: https://ezinearticles.com/?ISUSU—An-Unknown-Route-to-Compounding-Investment&id=2272514