Basic Concepts of Business Law
Course Description
Starting a small business is an exciting time for every entrepreneur. Making your dreams a reality is something every entrepreneur strives to do. However, a budding entrepreneur should ensure that they understand some basic legal concepts before starting their own business.
During an evening seminar, basic legal concepts are reviewed in two sections. The first section involves a discussion of business entities. He will review the concept of sole proprietorship, incorporation and the pros and cons of each. During discussion of each concept, we will branch into subtopics including business name registration, partnership agreements, shareholders agreements, and officer and director responsibilities.
The second section of the evening involves a discussion of the process of putting an approved loan into action including the security that a lender will often require as well as the background work that a client can accomplish prior to having their loan approved.
There is a discussion with an outline of a letter of offer or credit agreement presented by a financial institution Common terms and conditions that a borrower is likely to see is discussed, and the key components that are important such as repayment amounts, amortization periods, interest rates, prepayment penalties, assignment and default triggers.
After reviewing the basic concepts of the credit agreement, the discussion surrounds the basic security instruments that borrowers may be asked to provide, such as mortgages, promissory notes, general security agreements, security agreements, personal guarantees, waivers of distraint, assignment of rents and assignment of life insurance.
Final discussion is on items that would be required by a lender and legal counsel when processing a loan. An entrepreneur can address many of these prior to their lender approving the security or credit agreement. These include life insurance, fire insurance, liability insurance, surveys or location certificates, tax certificate for property taxes, pre-authorized payment arrangements including void cheques and contact information for all parties involved.
Questions and answer discussion period concludes the evening.
I am thankful for CBDC NOBL’s contribution toward this because for me this project was a huge cost and there is no way our business could have afforded to have it done alone. The consultant work we had done helped reinforce the positive attributes of our company, which helps to keep us motivated. It also outlined several small goals for us to work on to achieve our ultimate goal which is to create greater visibility of our farm outlet and draw more customers to us.
Lorenda Ebbett
Ebbett’s Meadow Brook Farm Market