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.
Being in the industry I am, I have been aware of the SEB program for many years. As a participant, I was surprised at the number of ways the program impacted my business. Everyone I dealt with from the beginnings of an idea to final approval were helpful and supportive. The professional presenters on topics ranging from marketing to financial issues to insurance were very informative and often were able to put things in the context of my business problems and concerns. The most surprising to me though was the benefit received from brainstorming with other business owners about issues we were all facing in trying to grow our business and the realization that we had a network of support.