Establishing A Corporation/Advantages And Disadvantages

A corporation can be defined as distinct legal business created under the state regulations by a sole owner or a team of owners, acting as initial shareholders. The hallmark characteristic of the corporation is that it’s legally independent of its creators. In case the corporation gets insolvent, the shareholders & owners won’t be liable over their very equity investments made in that corporation. Shareholders here will elect a Directorial Board for effective management of the corporation & the board further appoints executives to handle regular business operations. The article here is a short note on the advantages and disadvantages of a corporation.

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Advantages

Limited liability is one of the major advantages of a corporation. As the corporation is some distinct and separate legal entity, the corporation owners would be indebted only till their interest limit in that corporation. It implies the corporation creditors have no right to run for the stockholders’ personal assets while settling the debts & obligations of that corporation. Then, a corporation is easy on sell & transfer. In case the corporation stock is traded publicly, the investors and owners could sell the ownership interest quickly via stockbrokers. If the corporation stock isn’t traded publicly, stock certificate could be either transferred or else assigned to some other owner. Another important advantage of forming corporation is continuity. Unlike the sole proprietorship format, in case of corporation, a stockholder’s death won’t terminate the organization. It would still continue to exist as a distinct & separate legal entity where the shares would be transferred to other owners.

Disadvantages

One of the most significant cons if establishing a corporation is that the organization has to abide by a great list of complicated regulations & reportorial requirements. Another problem of establishing a corporation is double taxation. The possibilities of dual taxation arise from the dividends paid by the corporation. A corporation would be taxed on the basis of its income. In case a corporation distributes a portion of its net income amidst stockholders as the dividend, this divided would be taxed on personal IT returns of the stockholders. Besides, you must know that limited liability might weaken the credit capacity when the corporation is passing through a bad financial situation.

Differences Between Debt And Equity Financing

Debt and equity financing are two principle forms of financing in a business. Financing is the most needed support when your company is starting up or planning to embark on something new demanding volumes of money. Debt financing implies the financing that you get from some conventional bank loan- it involves money borrowed from lenders and investors. On the other hand, equity financing is the help you receive through venture capital invested into your company by the outside investors- it will require you to sell off a proportion of your interests to these investors. The article below is brief highlighting on the key differences between debt & equity financing.

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Difference in ownership

In case of debt financing, the companies borrow loans from either banks or through offering bonds. In case of equity financing, the company sell off shares via private offering or on stock market. The debt financing permits the agencies to gain complete ownership on the business while equity financing will distribute the equity or ownership amidst stockholders. If you are taking debt financing, you would just have to repay the due on the loans taken or the bonds issued, sans compromising on any equity.

Difference in profits

Companies opting for debt financing will maintain the equity holdings all through and hence any profit incurred would stay with the agency only. The businesses taking to equity financing would have to distribute profits amidst shareholders as the shareholders have a percentage of ownership in that business. The loans received from debt financing allow the companies to list the interest prices as tax write-off that lessens overall price of loan sum. As equity financing will generate capital required to bring profits, the companies could utilize equity financing to strengthen their élan to go for debt financing later on.

Difference in risk

In debt financing, bonds and loans are capital sources and the companies have to abide by repayment schedules in times of low and high cash flow. The interest prices attached to debt raises the sum of cash the agency requires to break-even operation costs. In case of equity financing, the companies are not into ant repayment liability & hence the risk is bore by shareholders or investors. A part of getting out of debt is learning more about credit repair.

How To Evaluate Stock Before Buying

Are you planning to invest on stock off late? Well, albeit stocks promise a prospective investment yet your degree of success will be largely determined by the choice of stock. There are several considerations to look for when you plan to buy stock. The article here is a short brief on how to evaluate stock before buying.

The primary thing to look for here is the earning of the company. When you are purchasing a stock, you are basically acquiring a certain piece of that agency and hence profitability will be a significant consideration. For example, let’s say that a business has been divided into several ownership pieces and the pieces are same as stock shares. Now, you must know that the value of the entire business will rise with the rising value of each of its pieces or shares- and increasingly valuable share incurs higher price getting capital appreciation for share owner. It’s also called rising stock rate.

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A very common parameter for the stocks is the ratio between price to company earnings. It’s called P/E. it’s available in the stock tables & as per the ratio the share cost is divided by net annual income of the company. Thus a stock which is trading for 20 USD & boasts net annual income of 2 USD per share would have the P/E of ten. According to experts, stocks with higher P/Es in comparison to P/E of broader market are expensive and stocks with below-the-market P/E would be cheaper.

However, you must know that P/E cannot guarantee the right measure always. A small  & fast growing company might show higher P/E since it earns little- yet has high stock rate. In case the agency is able to maintain sturdy growth rate & enhances its earnings rapidly, an apparently expensive stock as per P/E would seem akin to a bargain. Again, an agency might have low P/E since the stock has got slammed anticipating weak future earnings. Hence, apparently “cheap” stocks do not always imply bad investment.

The other popular parameters for stock evaluation are dividend yield, price-to-sales and price-to-book. These simple ratios work to test stock cost against 2nd figure & these measures are easily available from stock tables.

Financial Issues Of Getting Divorced

Divorce is always a stressful and traumatic experience for both the spouses and close family members. Added to the emotional trauma, the permanent separation leads to certain other complexities and financial issues are one among the most significant of them. Have you too decided to dissolve your marital status? Well, before you go for that you must be well informed about all the financial aspects of divorce to avoid any nasty scene post break-up. The article here is a brief on the financial issues concerning divorce.

 

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The financial issues here will include all your jointly owned property assets, debts as well as conjugal expenses and investments. In case of property assets, the smartest way is to take to a peaceful barter system with your spouse. For example- if you want the furnishing and car you have to keep the truck & tools for your ex. You can even sell off (of course on mutual consent) the property & divide proceeds equally. It’s needless to mention that attorney or mediator fee is one of the most important financial aspects of getting divorced.

Then, you must be clear about your conjugal debt situation- many of the divorces take a dirty run when it comes to debt repayment after breakup. Before coming to repayment value on your side, research out how much of the debt is mutual and how much is individual. A joint credit record from the credit report companies will offer you a clear picture on the debt situation. You must not let the debt to proceed further. The best process here is to cancel off all the credit cards, except the one to be used on emergencies.

Next come tax issues & retirement plans. The tax issues concerning divorce cover many considerations, like-

  • Who would be getting tax exemption benefit for dependants?
  • Who will be claiming the status of Household head?
  • Tax deductible attorney fee, etc.

In regards to the retirement savings- always remember that if your husband/wife has got retirement savings, the other partner is entitled to half, by law.

Refinancing Your Home to Get Cash

It can sometimes seem impossible to find a mortgage that can fit your budget while getting the dollar amount you need. However, rest assured that you can find exactly what you need at www.embracehomeloans.com. This website can provide you with a wide range of loan alternatives. Whether you are buying a new home or just looking to refinance your current mortgage, you are certain to find the right loan that can assist you with your financial needs.

Navigating through the website is fast and easy. The home page of the company gives you a wide selection of categories that you can choose from, which will take you where you need to go. You also have the alternative of getting a price quote before you get your mortgage loan. By doing this, you can see if the loan will meet your budget needs.

This company also offers mortgage loans so that you can consolidate any current debts you may have. Make sure that you read all of the information on the company’s home page so that you can get what you need. If you do have any questions about the process or about the loan itself, you can contact customer service agents by phone. These agents will be able to help you out and can answer all of your questions regarding your mortgage loan.

Get Cash for Hunting and Fishing Gear Replacement through Title Loans in Minnesota

Hunting and fishing are long-celebrated activities for many individuals and families in Minnesota. But when outdoor gear suddenly needs replacement or repairs, alongside other necessary expenditures such as accessories, annual licenses, and travel, budget can become severely tight. Fortunately, title loans in Minnesota offer a fast and convenient way to secure extra cash to cover these unplanned expenses in the meantime.

The North Star State is blessed with an abundance of natural resources that make it an attractive location for those who want to spend days and weeks in the great outdoors. For most, hunting and fishing provide a chance to connect with nature and enjoy the tranquility offered by Minnesota’s many lakes and rivers, as well as forests and other areas open to sportsmen. Others have even taken up these activities as a way to earn income by providing taxidermy services, selling fur, and many others.

These activities involve a substantial investment, but despite planning these expenses ahead, it doesn’t mean that emergencies can’t occur before hunting and angling season. Replacing ruined outdoor tents, for example, can cost anywhere between $200 to more than $1000 depending on the quality, features, and size; larger tents can be quite expensive if the entire family will join the trip.

Such events need not spoil the trip to the outdoors thanks to car title loans. Title loans are a type of secured loan that uses the title of the vehicle as collateral. Usually, the title has to be free and clear of liens to qualify for a loan. Providers also typically base eligibility for the loan on the market value of the borrower’s car instead of his credit score. This makes it easier to secure extra cash to cover unexpected expenses. Plus, borrowers can get approval for the loan and the cash they need in an hour or even much less as long as they have all the required documents ready.

Click to find title loans in Minnesota.

Mutual Funds Give You Advantages

The way to make the most money, if you want to take out a California payday loan and invest the money, is simply to put your money into a high-risk company that no one has ever heard of before and hope that it blows up and gets to be huge. If you would have invested just a few hundred dollars into some of the major computer companies back when they first began, you would be a multimillionaire today. You would never have to work again. However, as you have probably guessed, there is a huge downside to this strategy as well: It is a gigantic risk. For every company that grows to an incredible size, there are dozens, if not hundreds, that fail entirely. All of your money could be lost.

What should you do to keep this from happening? There are a few different strategies that traders use to make sure that they do not lose all of their money like this, and one that you could consider is to use mutual funds. These are investment portfolios that are made up of stocks from numerous different companies, all with a percentage of the shares. You could put in a distinct amount of money, providing it for the fund itself, but it is not going to go to just one of those companies. It is going to be spread out among all of them.

You are not going to make a ton of money right away in funds like this because there is simply no way that all of your investments are going to pan out. Some of those companies are going to lose money, and they may even lose quite a bit. You cannot ever expect the mutual funds to pay out on every option, even if the fund is being managed by a professional who has been doing this type of work for years.

However, this works both ways. You are able to weather the losses to your account because the odds are also very small that you are going to miss on all of the trades. The goal for the person handling your portfolio is simply to get it right more often than not. It does not matter if you lose $10,000 on two different stock options if you are able to make $40,000 on the others. Your net gain of $30,000 is all that matters. The main advantage is that this is safe, stable investing.

Is it beneficial to combine the critical illness insurance plan with mortgage refinance?

A mortgage with life insurance mixture is vital as it’s a kind of fiscal security for the household when you’re gone. It pays a lump-sum in the ill-fated scenario in that you simply pass away. The money payout needs to be adequate enough to clear any exceptional mortgage refinance repayments on your own property. Consequently, it is significant to have a whole life coverage that runs along with your mortgage. You need to guard your loved ones and family members from possible mortgage debt while providing critical illness insurance plan.

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Why you require critical illness insurance plan in your mortgage?

It’s also less pricey when compared with term insurance. This is only because the level of life cover or rates that you just want falls after every single mortgage payment. When you are interested-only in mortgage refinance you might contemplate term insurance. In both situation yet, the applicants will likely be safe as the mortgage debt is cleared only following the passing of the policy-holder, therefore the house will not be re-possessed at all.

Evaluating prices and advantages

You must gauge the benefits and prices entailed before you may make your final judgment about getting mortgage critical illness insurance plan. The price entailed will mostly rely in the life-insurance company you’re coping with, your actual age, present health status and medical record. Additionally they look over your vocation including your general lifestyle.

You might thus have to look at critical illness insurance plan. This will definitely pay a combined sum of money in case of a serious illness.

Online Payday Loans: Simple Way To Deal With Cash Emergencies

It happens to the best of us: payday is at the end of the week, but your car payment is due tomorrow, or your furnace stopped working in the middle of winter. How are you ever going to pay these necessary expenses when your next paycheck is not due to arrive for a couple more days?

This is where payday loans and cash advances come in handy. When money is already tight, or your next paycheck is still several days away, payday loans give you the cash you need to pay your bills on time or to take care of unexpected expenses without the worry of a bounced check or a late fee.

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In the past, these necessary payday loans have been available at a number of credit unions and cash advance locations. However, the increasing popularity of the Internet and the prevalence of technology have made it possible for you to receive an online payday loan without having to leave your home.

How Online Payday Loans Work

Unlike traditional cash advances, you can get the money you need from an online loan provider without having to physically travel to a location. You will need to submit an online application to the licensed payday loan site of your choice. Once you are approved, usually a very quick process, your cash advance is directly deposited into your bank account. When it is time to repay your cash advance, the amount of the loan plus any additional fees are electronically deducted directly from your bank account on the repayment due date.

The Advantages of Online Cash Advances

There are several reasons that you should consider an online payday loan rather than the traditional method of apply for an in-person cash advance.

1. Convenience – With online loans, you have the ability to apply anywhere and anytime if you have a secure Internet connection. This means that when you have an emergency or a sudden need for funds, you can use your home computer, tablet, or smartphone to make the request. You no longer need to travel to a payday loan provider’s location to receive the financial assistance that you need.

2. Easy application process – Most online cash advance sites have short applications that can be completed in five minutes or less, and most provide an almost instant response of approval or denial.

3. Credit history is not important – If you have a less-than-perfect credit history, it will not usually be a problem. You will be able to receive your payday loan quickly and easily.

4. Directly deposited funds – With online cash advances, the days of receiving a check that must then be taken to the bank to be cashed are gone. Once you have been approved for a loan, the money will be directly deposited into your account, usually within one business day of your request. At that time, the funds are available for you to use.

If you need short-term payday loan, consider online cash advances from Northcash as a fast, easy method for you to receive the money that you need.

Nam is a finance expert writer who has a particular interest in covering topics on loans. He’s also a regular contributor on Payday Loans Guide.org.

If Only My Dad Had Life Insurance

Most teenagers think their life of fun, school and friends will last forever. I know I did, but then sometimes something happens that makes this perception come to a grinding halt. Your life is turned upside down and you feel like you’ve stepped into an alternate universe. First comes the shock, then the disbelief and you know the rest of the 7 stages of grieving. Sometimes, you don’t reach the Holy Grail, you can’t find peace, acceptance and renewed hope no matter how hard you try. There are moments.  But every time you have a few minutes to yourself, it all comes back with a resounding crash.

A friend linked an article to me on chat; it spoke about a girl who had lost her mother and wished her mother had taken out a life insurance policy. His intention for linking me this article was noble, he felt it could be cathartic if I read an account of someone who’s pretty much sailing in the same boat as I am. It worked, to an extent- I mean the very next thing I did after that was get onto AccuQuote and searched for life insurance quotes. But when I think about it, that article is the reason why I’m writing this, maybe if I get I off my chest I’ll feel better, and I figured it’s worth a shot.1

Let me explain my situation, I come from a typical suburban American household with modest means. We’re not poor or anything, modest in the most literal sense of the word. I’m a single child, living at home with my stay at home mother, and up until fairly recently my father. Dad passed in a hit-and-run accident. It’s unbelievable how difficult it is to refer to him in the past tense, even though it’s been over half a year since the accident took place. Anyway, back to dad, he was the sole bread earner of the house; I’m his only child and had just graduated high school and we were comfortably off. My dad had a unique approach to life. He was a Carpe Diem, living in the moment kind of guy.

So when I told him I wanted an electric guitar for my birthday, I expected a simple ESP or Ibanez, but he surprised me with an expensive (albeit used) fender strat. For those who don’t speak guitar-ese, the fender is a fancy piece of engineering, an Ibanez or ESP guitar would have been loss so. The same goes for the price, the fender is pricey, the other two; not so much.

Dad’s attitude to life then clearly extended to how he spent his money as well. He didn’t mess about stuff like life insurance, although not a day goes by when I didn’t wish he did. Today, mom’s gone back to work after years and college, for me, is firmly on the backburner.  I’ve also found a job in the meantime. The house though is gone, and so is dad’s car, I even had to say goodbye to my beloved fender, dad’s extravagant gesture of his love to me is gone. I know it sounds stupid, especially because I couldn’t pick it up without tears flooding my eyes, don’t think I’d even be able to play it for a long, long time. But the memories attached, the lessons he gave me (he could shred out an Eric Clapton classic like it was nothing) how our bond strengthened over our jam sessions, all gone.

There’s no room for sentiment when reality hits though, so the place Mom and I called home since forever, every nook and cranny a treasure trove of memories, all left behind in one final swoop. I learned, the hard way, that while living in the moment is great, you have to cast one beady eye at the future, because life can take an unexpected turn at any given moment, leaving you completely and utterly in the lurch.

It isn’t all doom and gloom though; we’re getting by, which is better than what I could have hoped for as recently as two months ago, and things are starting to look up. I’ll buy another fender someday, and I’ll master Layla’s solo for dad, but the first thing I’m doing is getting a life insurance policy for Mom and I, just in case. It is most definitely better to be safe than sorry, and the sooner we secure our future, the sooner we can go back to living every day as it comes, safe in the knowledge that we won’t be de-railed to such an extent again. Carpe Diem…. just like dad.

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Reasons to choose key man insurance for your business

In the highly competitive and often highly lucrative business world, it’s important that you protect your assets in order to ensure that your business stays at the top of its game in regards to outdoing all of your other major competition, both now, and for the foreseeable future also. With the economy currently in the state that it’s in, every single penny matters, and every single decision you make could literally make or break your business. Take insurance for instance. If you happen to own a building for your business, obviously it will require insurance, as will all of the contents and belongs contained within also. Insurance is a great way of helping to protect your assets, prevent loss of earnings, and offer you a little piece of mind also. What many businesses perhaps don’t consider however, is the fact that they can also insure key members of their team, thanks to what’s known as ‘key man insurance’. In this article, we’ll be looking at what key man insurance is, and how it can help benefit you and your business too.

What is Key Man Insurance?

Simply put, key man insurance is a type of life insurance for your business, or rather, key members of staff involved in your business. It’s put in place to pay out in the event that an important member of staff should pass away, or be deemed unable to work any longer for whatever reasons. If you have an especially important member of staff, a managing director for example, should something happen to them, this has the potential to cost your business a significant amount of money, possibly even ruin it altogether. Key man insurance is there to add peace of mind and protect your business so that should the unthinkable actually happen, the business will receive a payout in order to stay afloat and get back on track. Key man insurance companies were until recently, monitored via the FSA (Financial Service Authority) in the UK. In the year 2013, the FSA was actually abolished and replaced by three separate financial organisations instead:

  • The FCA (Financial Conduct Authority)
  • The PRA (Prudential Regulation Authority), and
  • The FPC (Financial Policy Committee)

Providers of Key Man Insurance

There are many UK providers of Key Man Insurance and finding a reputable supplier is not difficult when searching online, however the problem arises with sifting through the providers and finding a trust worthy and professional key man insurance provider. It’s wise to get independent advise on the type of policy that best suits your business. Key Man Advice is readily available from http://www.keymanadviser.co.uk/ or visit the Key Man Insurance page for advice about these types of policies.

How can Key Man Insurance benefit businesses?

As we mentioned previously, in the unlikely event that a key member of staff should pass away or be deemed no longer fit and able to work, this also poses a significant financial threat to your business. This member of staff could have been involved personally with a number of lucrative deals and transactions with various clients, which could and probably would fall through should they pass away. Key Man Insurance helps protect you against any potential loss of earnings. It ensures that your company will be provided with enough money to help cover a fall in profits or a loss of revenue as a result of losing this team member. It provides you with the money to hire somebody skilled and qualified enough to handle the same responsibilities as your previous key member of staff, and it provides you and your team with peace of mind, safe in the knowledge that you, your staff and your assets are protected should the worst actually come to fruition.

A generational approach to College Student Debt

It s widely known that higher institutions of learning or post-secondary schools are quite the investment. Our parents reiterate the importance of a college education time and time again but do you really know what it s going to cost you? In 2012, the average student loan debt hovered around $25,000, and that s just for an undergraduate degree! The rising cost of tuition in addition to inflation equates to big loans. Individuals opting for more advanced degrees can expect to take on an additional $95,000.

Preparing to enter the job market? Here is another startling fact傭ased on a recent study 53% of recent grads were unemployed or jobless. So not only are graduates over their head in debt but they can t even pay it off because of the economy.

With these figures coming to surface, many are re-examining their desire for a degree altogether. If you re on this path, then set aside a few minutes to review this timeline. Developed by the debt counselors over at Consolidated Credit, it highlights the shocking statistics of student loan debt in the United States. We ve got some solutions to start digging your way out of debt or to prepare you for the leap into adulthood.

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Loans for people with bad credit can help you to attain financial stability

Bad Credit Loan is a boon for those having bad credits in the market. No matter how much bad credit rating you have as there are innumerable options in loans for people with bad credit. You can meet your upfront cash with bad credit loan easily. Whether it is about secured or unsecured bad credit debts there are still several reliable financing institutions that provide good mortgage deals. However, if you are concerned about second mortgage rates then make sure you research the market at its best.

Sometimes when you find yourself unable to pay your debts, it will be more suitable for you to take bad credit loan rather deciding to declare yourself bankrupt. You can take bad credit loan for your business, for home renovation, for wedding or holidays etc. Since you are a bad credit holder so, no one will come forward for your help, but bad credit loan provider can. There are several options in loans for people with bad credit in terms of interest rates and repayment period.

Although it is tough, but if you are looking for bad credit loan and second mortgage rates than BHM Financial have a solution for you to give you complete financial stability. However there are several different bad credit loan providers in the market to choose from. In order to make a right selection you need to assess all the basics for instance, interest rate, repayment period, early loan repayment facility etc. These assessments will help you to get best deals.

Money and Banking Issues for Expatriates Living in Oman

The Sultanate of Oman is a country located in the Gulf region. Similar to other Gulf nations, oil is the main driver of Oman’s economic growth. According to the National Center for Statistics and Information (NCSI), 44% (1.68 million) of the country’s population are expatriates at the end of February 2013. Expatriate population in Oman has increased by 106.4% since 2010, compared to a growth of 9.7% of Omani population. Oman is ranked the top 10 economies in terms of expat satisfaction, according to HSBC’s Expat Explorer 2013 survey. The tax-free lifestyle and political stability are the main lures of expatriates to the country but with this should come a sensible approach to personal finance. Read on for some helpful financial information for expats living in Oman.

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Tax and Pension

There is no personal income tax, gift tax, wealth tax or VAT in Oman. However, there are also no state pension schemes in Oman for expatriates. Some international companies and state institutions offer corporate pension plans for their employees. Expatriates’ net income after saving aside a portion for pension may still be higher than at home. Tax situation for expatriates can be complicated so it’s important to seek professional finance advice on tax obligations and ways to manage savings and investments overseas to benefit from potential tax efficiencies.

Banking

There are many local banks in Oman. Oman is also home to many international banks, meaning internationals can apply for personal loans with HSBC and other institutions found in the West. Specialist banks such as the Oman Housing Bank (OHB), Oman Development Bank (ODB) and the Alliance Housing Bank provide support for development efforts in specific fields such as housing, industry, agriculture and fisheries. Islamic banks are regulated according to Islamic law. Expatriates who plan to deal with Islamic banks in Oman should compare the differences between Islamic and conventional banks.

Debit and credit cards

All banks in Oman offer debit cards and ATM services. Any cash withdrawal and purchases are automatically deducted from your bank account. ATMs are located in shopping malls, supermarkets and major tourist attractions. Credit cards like MasterCard and Visa are widely accepted.

Home Financing

It’s common for expatriates to invest in property in Oman. Home financing can be obtained through attractive personal loans offered by most banks in Oman. Expatriates are allowed to buy land in Oman and also extend the size of their residential or commercial properties. In 2013, the Central Bank of Oman (CBO) lowered the upper ceiling on the personal loan portfolios of commercial banks from 40% to 35% of a bank’s total credit and increased the housing loan limit to 15% from 10%. To keep up with global trend of interest rates, CBO reduced the rate of personal loans offered by local commercial banks to 7% levels from the previous rates of 8% in March 2012. This has helped ease the financial burden on borrowers and encourage banks to promote savings and reduce consumption.

Health insurance

Expatriates don’t benefit from Oman’s public healthcare. Although medical insurance is offered and paid for by employers, some of these employer-sponsored healthcare policies do not include some specific private clinics. Expatriates should negotiate the conditions of their healthcare plan with their employers carefully.

Image by Talal.mazrui, used under Creative Comms license.