Monthly Archives: July 2015

Legal Advocacy in Difficult Financial Cases

The average layperson often does not have the comprehension to understand the legal intricacies of banking matters. When they are building a case or going to court against a seemingly powerful financier, people may be unprepared for the loopholes and legal lingo that could undermine their success. Rather than go into a legal proceeding without the knowledge they need, they may do well to retain counsel and advocates like a bank expert witness who can help them present their cases better. The witness will identify the various loopholes and language that need to be explained so that people have a better chance of winning their cases in court.

Before they select a witness, however, people also would be advised to ensure that this professional is skilled in the area of finance being contested or negotiated. For example, if the case centers on agricultural financing, both sides would do well to ensure that the witness understands all of the aspects of financing farms, equipment, real estate, livestock, and other aspects of agriculture. It would not be beneficial to retain the expertise of someone who specializes in the financial aspects of housing loans or loans for starting a business. Instead, the person being called to lend expertise should be well acquainted with farming and perhaps have even worked in the agricultural sector prior to becoming a witness.

Likewise, people may do well to do some research on the expert’s online website if one is available. They can find out more about this individual and also answer many of the questions they may have leading up to their case. They can discover what training this person has, what professional experience he or she brings to the case, and what specialties this person has been involved in before that pertain to the banking or financial sector. Having this information on hand can put people’s minds at ease and give them the satisfaction of knowing that they are being proactive in their own legal matter. Along with retaining a lawyer, they should retain a witness who is a financial expert.

Buying an Existing Business – A Complete Guide

For most people, the idea of buying an existing business is more appealing than having to start from scratch and there are many reasons why this is so. One of the reasons is that somebody else has already covered a lot of ground for you, like establishing a good customer base, negotiating a lease and hiring employees. Still, it is important that you do extensive research to ensure that what you are being promised is what you get. Below is a step-by-step guide on how to buy an existing business.

WHAT TYPE OF BUSINESS FOR SALE SHOULD YOU BUY?

When looking for a business to buy, try choosing one that has some kind of connection to classes you have taken, skills you have, or perhaps the type of work that you have been involved with in the past or you are doing currently. Buying a business for sale you don’t know much about is a big mistake that can cost you a lot. Even if you manage to purchase the business, there are good chances that you will struggle with it later as you won’t have any experience with its core business function.

But the most important thing is that you select a business that excites you and which you have a lot of passion in. Your chances of making it in an industry are better when you enjoy being within the industry.

FINDING THE RIGHT BUSINESS TO BUY

The best place to begin searching for the right business to purchase is closer to home than you think. For example, if you currently work for a small business that interests you, ask the present owner if they are considering selling. Alternatively, you can ask friends or workmates if they know similar businesses that might be on sale. A good number of the best business opportunities come about from word of mouth and are most likely to be snapped up long before the owner puts them up for sale.

You might also want to check out online and newspaper ads, real estate brokers, trade associations and business suppliers for leads. Lastly, you can also work with business brokers. These are people who help business owners find buyers of their businesses and are paid a commission. While it is okay to use a business broker to find a good business opportunity, you should not rely on them because for them, any sale is worth a lot of cash in commissions. They will do everything to convince you to buy. You cannot count on them for advice regarding the fairness of selling price or quality of the business.

RESEARCH ON ITS FINANCES AND HISTORY

Prior to seriously considering buying a certain business, it is important to know as much about it as you can. Review copies of certified financial records of the company, like cash flow statements, accounts received and payable, balance sheets, employee files as well as any contracts and leases. Also take time to look into any previous lawsuits that the company might have been involved in.

This is what lawyers term as due diligence and it will help you if the company ticks and also warn you of any potential bottlenecks. For instance, if a lease bars you from taking the company over without the permission of the landlord, you will not want to close the deal without first getting that permission.

CLOSING THE DEAL

In case you have investigated a company thoroughly and wish to proceed with the deal, there are some more steps that you will have to take. Firstly, you will have to come into an agreement with the seller about a fair purchase price. The best way to come to the right price of the business is by hiring an expert appraiser. After that, you need to agree with the seller on the assets that you will purchase (for instance equipment and building) as well as the terms of payment. In most cases, businesses are bought on instalment plans after paying a sizeable deposit.

After outlining the terms agreeable to both you and the seller, the next thing is creating a written sales agreement which, if possible, should be reviewed by your lawyer before you go ahead and sign.

It is a big mistake to buy a business simply because it has been listed up for sale. There are a lot of other things that you have to do despite the fact that a lot of legwork has already been done for you by the previous owner. You need to research on the finances and its history before you can close the deal.

Looking to buy a business online? Make sure you go through the correct processes to ensure you are getting a good deal.

Factors about Islamic Home Loans

Home buying is definitely a complicated process. At first, you have to estimate the mortgage you will be getting with your present credentials, then you will have to tally whether the houses available in your budget would be able to meet your lifestyle needs or not (or for that matter, whether, at all they would be able to accommodate all your family members comfortably or not). If you are a Muslim, you would have to go a step further in finding out about the way in which Islamic home loans work. It is very important to realize that the Holy Quran does not allow Muslims to receive or pay interest and add on to his wealth in the process. You can multiply your wealth with the help of trading, but not by receiving interest rates. This particular aspect makes Islamic home loans an interesting area of study since it is very difficult to imagine mortgage without interests. Read on:

Two types of Islamic Mortgage Loans

There are two types of loans featuring in Islamic home financing– the Ijara loans and the Murabaha loans. Make sure that you are learning properly about these two loans in order to ensure that you’re not flouting the norms when it comes to availing mortgage.

Ijara Loans

As per the Ijara method of Islamic home financing the bank buys a property and gives it to you on lease for a period of good 20 to 25 years. In this case, you can even buy the house at the end of the lease period. And, in between all these years you will actually be paying rent instead of interests. The rent varies as per the rates of interest in the market. That’s one way of owning a property if you’re a Muslim. There’s another way explained below.

Murabaha Method

According to this particular method of Islamic home financing the bank buys the property and sells it to you at a fixed profit. The property is registered against your name. It is very important to find out about these particular methods of home financing in order to ensure that you are actually not flouting the norms of the holy Quran while buying your dream home.

Make sure you’re finding out the banks, which have policies in compliance with the Islamic method of home financing. Hopefully this article has been of help.