Archive for August, 2014

Factors to Consider Before Applying for Commercial Loan.

When you are in business whether as a sole trader or a company, there will be times when the business cannot generate enough cash flow to meet its ongoing operating expenses. Your need for cash will also arise when you will expand business operations and purchase much-needed business assets. If you are a business owner and experiencing cash flow fluctuations, your next step should be to consider getting a commercial loan.

A commercial loan is also called a business loan and it can be set up for you, whereby you can use the proceeds of the loan to fund large capital expenditures or operating expenses that your business may otherwise be unable to afford. You will need to consider a number of options when deciding on a commercial business loan. Here is a list of options you should consider:

1. You will have to decide on the type of acceptable security you want to provide (e.g. residential, commercial or industrial).

2. You will have to decide if the securities taken by the lender/credit provider consist of Registered 1st or 2nd Mortgages, and

3. You will have to decide on the loan type (e.g. Interest Only or Interest plus Principal), the maximum loan size and the maximum loan-to-value ratio (LVR) percentage.

If you elect to fund your large capital expenditures or operating expenses with a commercial loan, you should consider all of the following factors:

1. If your business requires working capital or is at an important stage of development that requires a capital input, a short-term commercial loan may provide an effective solution. This loan is taken out for short-term and has a pre-determined exit date.

2. If you are considering purchasing a commercial property to either operate your business or to create a commercial property, you may require a longer-term commercial loan.

So, these are the main options and factors to think about when you are deciding to expand your business operations or generating enough cash flow to meet the ongoing operating expenses of your business. If you are confused about anything regarding commercial loans or want to seek expert help, you can consult a finance broker. He/she will understand your business requirements and suggest the best financial solution.

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Get Out of Debt for Less With Debt Settlement.

If you have too much debt and stress, now is the time to stop this destructive cycle and get the help you need from a debt reduction program. This article teaches you the principles of debt settlement, one of the most popular forms of debt relief.

What is a debt settlement?

Debt settlement is also known as debt arbitration, debt negotiation or credit settlement-is a debt relief approach where negotiators communicate with creditors on your behalf to settle your debts to reduced and agreed to amounts. Only unsecured debt such as credit cards, medical bills and personal loans can be negotiated. You can’t settle mortgages, rent, utility bills, cell phone and cable charges, insurance premiums, car loans, student loans, alimony, child support, taxes or criminal fines.

Once you enrol in a debt settlement program, your negotiation team opens a trust account for you. You must deposit up to 50% of your unsecured debt into the account over a period of 24-60 months. This money is used to settle your debts with creditors. Because the average debt settlement firm is for-profit, you must also pay the company a 15-25% service charge. This fee is based on the original amount of your unsecured debt or the amount negotiated, depending on the debt settlement company.

Most debt arbitration companies use a third-party escrow service to “warehouse” the money that they will later use to fund the settlements they negotiate for you. Sending money to your trust account is generally done through ACH on the same day each month. If your checking account is with a bank where you also have a past due loan or credit card balance, it is suggested that you use a different bank for your debt settlement program.

Here are three things that a debt arbitration company must tell you before you enrol in their program:

1. You must be given an “upfront estimate” in writing of all costs associated with settling your debts to reduced and agreed-to amounts.

2. You must be given an “estimated timeframe” to reduce your debt.

3. You must be told that debt settlement can adversely affect your credit score.

Here are some examples of what a debt settlement company cannot tell you:

“We can eliminate 50-70% of your debt.”

“We can cut your debt in half.”

“Debt settlement will not affect your credit score.”

“Calls and letters from creditors will stop once you enrol in a debt settlement program.”

“Debt settlement does not affect your taxable income.”

“Once you join a debt settlement program, you will no longer have to communicate with your creditors.”

If you are considering debt settlement, here is what you need to know first:

1. Debt settlement will not solve your careless spending and savings habits. The only way that you will ever achieve lasting financial freedom is to apply the dynamic laws of financial recovery to your everyday life. These smart-money principles will help you to establish spending and savings habits that are built on solid bedrock. They are discussed in a separate article entitled “The Dynamic Laws of a Successful Financial Makeover.”

2. Debt settlement should not be confused with bill consolidation, another form of debt reduction. Bill consolidation-also known as interest-rate arbitration-takes your high-interest credit cards and loans and consolidates them into one, low-interest loan that you can afford. In other words, you’re taking out one loan to pay off many others. Bill consolidation does not reduce the outstanding balances that you owe to creditors. It only lowers your interest rates.

3. One of the primary reasons that people choose debt arbitration is to avoid filing for bankruptcy protection.

Here are five reasons why the consequences of bankruptcy can be overwhelming:

  1. Bankruptcy stays on your credit report for 10 years and adversely affects your credit score.
  2. Bankruptcy will follow you for the rest of your life. For example, many loan, credit card, and job applications ask if you have ever filed for bankruptcy protection.
  3. Bankruptcy cannot eliminate alimony and child support obligations as well as criminal fines.
  4. Except in very limited circumstances, bankruptcy cannot wipe out student loans.
  5. Bankruptcy cannot prevent a “secured creditor” from repossessing property. “A bankruptcy discharge eliminates debts, but it does not eliminate liens. So, if you have a secured debt (a debt where the creditor has a lien on your property and can repossess it if you don’t pay the debt), bankruptcy can eliminate the debt but it does not prevent the creditor from repossessing the property.”



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Facts You Should Know About Obtaining A Patent.

A patent is an intellectual property right that gives the holder not an operating right but a right to prohibit the use by a third party of the patented invention, from a certain date for a limited duration (usually 20 years).

Some countries may at the time of registration issue a “provisional patent” and may grant a “grace period” of one year which avoids the invalidity of the patent to an inventor who disclosed his invention before filing a patent in a non-confidential basis with the advantage of allowing rapid dissemination of technical information while reserving the industrial exploitation of the invention. Depending on the country, the first “inventor” or the first “filer” has priority to the patent.

The patent is valid only in a given territory. Thus, the patent remains national. It is possible to file a patent application for a certain country (INPI for France, the USPTO for the U.S., JPO for Japan), or a group of countries (with the EPO for 38 European countries, filing a PCT application for the 142 signatories of the Treaty). In that sense, a patent application may cover several coutrries.
In return, the invention must be disclosed to the public. In practice, patents are automatically published 18 months after the priority date, that is to say, after the first filing, except in special cases.

To be patentable, besides the fact that is must be an “invention”, must also meet three essential criteria:
1. It must be new, that is to say that nothing similar has ever been accessible to the public knowledge, by any means whatsoever (written, oral, use………) and anywhere. It also should not match the content of a patent that was filed but not yet published.
2. It must have inventive step, that is to say, it cannot be obvious from the prior art.
3. It must have industrial application, it can be used or manufactured in any kind of industry, including agriculture (excluding works of art or crafts, for example).

When a company believes that its competitors are unlikely to discover one of its secrets during the period of coverage of any patent, or that a company would not be able to detect infringement or enforce its rights, it can chose not to file which carriers a risk and a benefit.
The risk: If a competitor finds the same process and obtain a patent on it, the company may be prohibited to use his own invention.
The advantage: If there is no patent, the method is not published and therefore the company can expect to continue operation in theory indefinitely. However in practice, someone will probably find the idea one day but the duration of protection may end up longer in total. This system of trade secret and therefore non-patenting is sued in some cases by the chemical industry.


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Are you Prepared for Your Retirement?

There are many principles most individuals follow as a guide in everyday living but when it comes to financial planning and investing using a self employed retirement plan, choosing the best principles to apply is important. As much as possible learning from the experts in this field is highly recommended. Account holders of self employed retirement plans can greatly benefit from the proven financial principles because these could determine the growth of their retirement funds. What are these principles and how can you apply these in your retirement?

Set goals.

What do you want to achieve in your retirement? What are your goals and how do you plan to execute each of them? These are some of the questions you would want to ask yourself when planning for your retirement.

Free yourself from debt.

You can consider yourself absolutely financially free if you have zero debt. Peace of mind is the greatest prize you can get if you get yourself out of debts.

Investing for the future.

Saving money for the future is good but saving and investing at the same time is the best solution! Keeping your money in the bank with interest rates that cannot even keep pace with inflation will not suffice the kind of life you want to achieve in your later years. What you have saved for the longest time may just be enough for your daily living expenses in retirement. If you want to fully enjoy your golden years and make dreams into reality then maximizing your savings through investing makes a lot of sense.

Investment diversification.

Having two or more investments will make you worry less about having your self employed retirement account dormant from earnings. Passive investment like trust deeds or mortgage notes is recommended. In case your other investments fail to deliver, you have other back up.

Preparing for unexpected.

This makes a lot of sense because in the first place this is what retirement planning is all bout it. We never know what life would be in our later years and that is why preparing for unforeseen events is relevant. Accident, sudden illness, death of loved ones, job loss, poor business are some of the unexpected things we need to prepare for. If you have a generous amount in your retirement funds, worrying about any of these things would not be a major problem.


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The Optimal Liability Insurance for Your Business.

You want to protect your business in the most effective possible way with the use of liability insurance. For this to happen, you need to make several important choices. One of them is how much cover to buy.

The following information and advice will help you with making this major decision:

Cover Amount Basics.

You should have a clear idea of the limits set on the liability insurance amount. there is a typically limit per occurrence. It sets the maximum amount which can be used for settling the claim or claims related to a single accident. There is also an aggregate or period limit. It defines the maximum amount which the policy can pay out during the respective insurance period, which is typically one year.
Additionally you should check whether the cost of the legal assistance which you will get as part of the policy is wrapped into the total cover amount. If this is the case, you will have less money available for settling claims. You must take this limitation into account, if it is applicable to your policy.

Risk Assessment.

The liability insurance amount which you buy have to correspond to the risk of a liability claim against your company. In order to assess the risk level, you need to take into account the nature of your product or service, the clients which you have and the claim statistics for your industry as a whole. If you provide financial advisory services, for example,you face a higher risk. Similarly, if you work with clients such as children or seniors, the likelihood of an accident is also greater. at the same time you can measure for risk reduction such as providing safety training to employees.

Revenue and Wealth Assessment.

When a claim is made, the claimant always takes into account the ability of the defendant to pay in order to determine the size of the demanded compensation. This is why it’s essential for your liability cover amount to match the revenue and wealth of your company. In this way you will get the most effective protection.


You should definitely set up a budget to have a precise idea of how much you want to spend on a liability policy. You should try to get the maximum possible cover amount for the money which you can spend through comparison shopping. You have to confirm that you will not remain underinsured.

Last, but not least, you should definitely consider using professional help when determining the optimal liability insurance amount for your business.

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Revenue probe 150 individuals over offshore tax scheme.

As reported by Ian Keogh in The Sunday Business Post, more than 150 high net worth individuals are using an elaborate offshore tax avoidance scheme to wipe massive sums off their tax bill.

A syndicate of 153 people is using the controversial tax tactic, which apparently centres on moving complex financial instruments and dividends through secretive offshore “tax havens”. The Revenue Commissioners has identified 239 separate transactions involving the scheme, which is now the subject of a wide-ranging investigation by the Irish tax authority. Further investigations reveal that the syndicate was arranged by a major Irish accountancy firm, which cannot be named as the scheme remains subject to challenge.

Revenue documents reveal that the 153 individuals purchased a right to a dividend from a company in a tax haven. They are claiming that the dividend is not taxable. In addition, they have claimed a loss from the trade, which they wanted to offset against their tax bill in this jurisdiction. Documents obtained by the Sunday Business Post state that the transaction is now under scrutiny by the Revenue Commissioners. Revenue learned of the scheme in recent months, as a result of a so-called protective notification system. The system allows for tax practitioners to inform the Revenue of details of any potentially controversial tax schemes. Revenue has used the system to weed out potentially illegal tax dodges.

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