It is true that money is not everything but it is something without which we can’t even imagine to have our basic and luxuries of life. It is generally seen that people with sufficient finances look happier and satisfied; on the other hand people facing any shortfall of money are depressed and seems to be unsatisfied. Now, there is good news for those people who are depressed just because that they are falling short of money to meet their expenses. This good news comes in the package of cash advance payday loans which provides financial assistance that further helps in overcoming the crisis situation.

Cash advance payday loans are basically designed to meet immediate and sudden expenses. It is possible that we might that think as financial market also have other standard loans but why to choose cash advance payday loans? The reason why, cash advance payday loan is recommended because other standard loans take long processing and approval time which can further delay in providing cash to the person in need. On the side cash advance payday loans approves faster as any other standard loan in the market.

Cash advance payday loans are generally taken, when our pay cheque is not enough to meet our expenses or it can also be said that, it provides financial assistance in subsequent two paydays of a person.

Now let’s discuss the features of cash advance payday loans in order to understand it in better way. Some of their features are:

• Quick approval

Cash advance payday loans are generally taken to meet immediate expense and this situation results in an immediate need of finances, so relying on the other sources is not worth because they takes very long time for approval. On the other side cash advance payday loans are known for their faster approval.

• No credit check

Any person can avail cash advance payday loans despite of their poor credit score. This can be also considered as an opportunity to improve their credit score if they make timely and duly payments.

• Any purpose loan

Cash advance payday loans can be used for any purpose as per the needs and requirements. Generally, it is used to meet all the day to day expenses such certain bills, hospital expenses, school fees or any other personal expenses.

• Repayment period

Its repayment period varies from person to person. Commonly, its term varies from 15 days to a month and even the term can be extended at the demand of the borrower but for this the lender can charge his fees again.

So, as to conclude it is absolutely right to say that cash advance payday loans are the best source of finance to meet sudden expense.

Daniel Robinson

In simple terms payday cash loans can be defined as a loan which provides financial assistance in order to meet sudden expenses, between two subsequent paydays of a person.

Payday cash loans basically have two features, which wholly defines the nature of such loan that are:

•Short term

•High interest

In payday cash loans, there is no need to place any collateral against the loan amount and as a result of which the lender in order to balance his amount of risk involved in the loan charges high rate of interest. But the borrower will not feel any burden of paying high interest as they are repaid within short span of time.

Interest rate, which is being offered, varies from lender to lender. So there is always a need to compare interest rates being offered by different lenders in order to know the competitiveness of the loan rates.

When we avail any payday cash loans, it is possible that a thought might come in our mind that an offer which has been accepted by us is the most appropriate one. But in reality, it is possible that the cost or rate which we are paying, is very high, however at that time nothing can be done except paying high rates. So, before accepting any offer of payday cash loans, there is always a need to take certain steps in order to prevent these high cost loan.

One of the most effective ways to prevent high cost payday cash loans is through research. While researching, the person will come across many lenders offering loan. But, the need is that every offer must be compared with another on the basis of interest rate, cost involved and its terms. The sum of these three components can be termed as annual percentage rate.

The task of comparison also becomes simpler if it is done through online. Online mode of applying also reduces the initial costs of the loan which results in making the loan deal cheaper.

While availing payday cash loans, it is compulsory that the borrower must be regularly employed. He is also required to provide his identity proof, income proof and also post dated cheques to the lender on availing payday cash loans.

Payday cash loan is also known by different names, such as:

•Post-dated cheque loan

•Cash advance loan

•Payday advance cash loan

•And many more

Though, it is known by different names but the function of all is to provide financial assistance to us when we need it the most.

Daniel Robinson

In understanding the Law of Attraction, we come to realize that we attract into our lives whatever we give our Attention, Energy and Focus to. Whether wanted or unwanted.

That with synchronicity, we attract from the outside what we resonate with, on the inside, bringing into our life what we momentarily strongly focus upon.

In other words that by having an optimistic attitude and focusing on success, one attracts these, while having a cynical depressed attitude attracts negative experiences.

Could this be true?

During my introduction to the Law of Attraction, I needed to make a shift to the positive; I’d surely had enough negative experience to last a lifetime. Before to long my life carried on staying the same, bills, debt, more bills, more debt, you get the picture.

What was happening?

Understanding the Law of Attraction principles was not a problem, I focused on the positive, and all I was getting was the same old deal.

We are told that we need faith, we need to believe and be grateful and this elusive Law of Attraction will kick in.

Great, I had the answer, say thank you to everyone and all would be OK!

The postman got a thank you for not bringing a bill, the trolley boy at the supermarket got one for leaving a trolley out for me, so did the checkout girl because there was no queue, I thanked the ATM machine, the bank manager, the kid on the bike, my computer, the cooker, heck I must be the most grateful person on the planet, this Law of Attraction ain’t going turn me down.

After a few days of this everything started to go wrong, you guessed it, the postman brought a bill, the trolley boy left no trolley, the checkout girl left a queue, even the ATM stopped giving me money.

What’s going wrong?

What was I missing?

Then those words rang out at me again, in understanding the Law of Attraction process you needed Faith and Belief.

But how could I Believe? This stuff hadn’t worked up to now, so how could I believe? Tell me how it works and then I’ll Believe,

‘You don’t need to know, you don’t know how electricity works, but you still use it’

But that’s not fair! With electricity, I don’t need faith, I plug the kettle in and get a steaming cup of coffee, whether I believe it or not.

So the question is, if I focus on the fact that I have little money, bad health, or a poor relationship, how and why does the Law of Attraction respond by giving me more of what I’m focusing on?

And if I shift my focus to the positive how do my desires come true?

And this is the great secret of the secret, in understanding The Law of Attraction and knowing how it works, you’ll start to trust it

Trust it and you’ll start to believe it. Believe it, and it will start to respond and only then can you start to refine, mould, and create your desired reality.

So How and why does the Law of Attraction, work?

This is not an easy question to answer, arguably the first self-improvement guide that existed, which mentioned, or more accurately referred to the law attraction, was the First Testament. We therefore have to take a Spiritual or Religious view.

So do I argue the existence of a God?

But then again, it is science that has put the law of attraction, back on the modern day table.

So do I argue the fact of science?

You see, throughout history, it has been a battle of science and religion, from astrology to evolution, you could not sit on the fence, were you blinded by science or misguided by religion?

This is a dawn of a new age, where religion will need to embrace its own evolution, and science its spirituality.

Our minds are like parachutes, only functioning properly when fully open, and now is the time to Pull The Cord.

But for many people any consideration to the principles behind the way the Law of Attraction work is a futile exercise unless we can prove this Law.

Is it that the Law of Attraction, is just a theory?

Strictly speaking it is, but there is some confusion between what “theory” means informally, compared to a “theory of science”.

In the scientific sense, a theory is a group of general propositions used as principles to explain a condition or phenomena.

So does this mean that the law, Attraction is uncertain?

Not at all, or more accurately speaking, as uncertain as electricity, gravity and evolution.

Ah, I here you say, electricity and gravity are governed by laws!

True, and here’s the difference, a theory does not imply lack of certainty, but explains the reason for seeing a result, to our best understanding, a law however, implies that the results we see can be calculated in controlled conditions.

Yes but as a theory, the law, Attraction has no proof!

Ok, but does that make it weak?

Has anything in the physical world ever been proved? Or will it ever be?

In the real world, we must deal with levels of certainty based on evidence. The more and better evidence we have for something, the more certainty we assign to it; when there is enough evidence, we label the something a fact, even though it still isn’t 100% certain, or fully understood.

To use proof as an argument against the ‘theory’ of the law ‘Attraction’, is ridiculous … you might as well argue that gravity is a theory, and that we can’t assume objects will always fall to the ground, after all it’s far from being completely understood.

What the Law Attraction has, is what any good scientific claim has, evidence, and lots of it. A wide range of observations throughout history supports the law Attraction and to challenge the theory, Attraction, you must address that evidence.

You must show that the evidence is either wrong or irrelevant, or that it fits another theory better.

Of course, to do this, you must know both the theory and the evidence.

So what is the evidence of this law Attraction?

One of the most successful self-help books of all time was a 25 year study of success principles documented by Napoleon Hill in his books Law of Success and Think and Grow Rich

Think and Grow Rich Hill refers to the law Attraction as the Secret, which has made fortunes for more than five hundred exceedingly wealthy men whom he carefully analyzed over a long period of years.

This secret, the Law of Attraction, was brought to Hill’s attention by Andrew Carnegie, asking Hill if he would be willing to spend twenty years or more, taking this principle to the world, to men and women who, without the secret, might go through life as failures.

This book contains the secret law Attraction, after having been put to a practical test by thousands of people, in almost every walk of life. It was Mr. Carnegie’s idea that the magic formula, which gave him a stupendous fortune, ought to be placed within reach of people who do not have time to investigate how men make money, and it was his hope that Hill might test and demonstrate the soundness of the formula through the experience of men and women in every calling.

He believed the formula should be taught in all public schools and colleges, and expressed the opinion that if it were properly taught it would so revolutionize the entire educational system that the time spent in school could be reduced to less than half.

Napoleon Hill analyzed hundreds of well known men, many of whom admitted that they had accumulated their vast fortunes through the aid of the Carnegie secret; among these men were: Ford, Wrigle, Wanamaker, Roosevelt, Hubbard, Wright, Schab, Gillette, Rockefeller, Edison, Woolworth and Bell.

“These names represent but a small fraction of the hundreds of well known Americans whose achievements, financially and otherwise, prove that those who understand and apply the Carnegie secret, reach high stations in life. I have never known anyone who was inspired to use the secret, who did not achieve noteworthy success in his chosen calling. I have never known any person to distinguish himself, or to accumulate riches of any consequence, without possession of the secret. From these two facts I draw the conclusion that the secret is more important, as a part of the knowledge essential for self-determination, than any which one receives through what is popularly known as education.”

I do suggest that you read Think and Grow Rich, which you can download from the Law-of-Attraction-Guide Pdf Library. However Hills preceding book, The Law of Success, is a much clearer and concise version, but, an extremely rare book!

The Law of Success is one of our study books in the Law-of-Attraction-Guide Training Programme Unlock The Power of You

John Peace

Once upon a time, head hunters were no more than common cannibals. Some people still view them that way, but executive recruiters are a vital link in a chain that keeps major enterprises functioning well.

The top positions at any organization dictate the fortunes of the company, the shareholders and the employees … and often the communities in which they are located. A good executive head hunter can ensure that new company executives have the skills required for the position and the challenges ahead. He can also ensure that the right executive is chosen, one whose style will flourish in the specific environment of that company.

However, modern executive recruiters face challenges to be effective. I caught up with Esther Barzel, co-owner of the Online Recruiter Directory ( http://www.onlinerecruitersdirectory.com ).

Q: What are the main challenges of executive head hunters in today’s business climate?

A: To start with, the geographic net has become much wider. A head hunter in , say, New York City or Toronto, can no longer rely on finding the right candidate right in town. In fact, the ideal candidate might be just minutes away by Internet, but he might be located in another country or even on another continent. We are looking at a new breed of executive recruiter.

Q: The Internet should make his job easier, right?

A: Yes…and no. He has to post requirements in more places and sift through more potential candidates to find the jewel he seeks. So his workload has actually increased.

Q: Plus, I presume, he still faces the challenges of yesteryear?

A: That’s right. He still has to make contact with potential candidates, conduct preliminary interviews, set up meetings with the company, attend to minute details, brief the interviewer, etc.

Q: What about follow-up?

A: Yes, there is, of course, follow-up required after every interview, both with the client and with the prospect. It’s a busy job.

Q: So how does the Internet make life easier for an executive recruiter?

A: Now you have online communities and bulletin boards, such as Monster.com, where you can place ads for positions. This makes it somewhat easier to cast one’s net. Directories like ours help head hunters attract clients, so they can spend more recruiting and less time on business development.

Q: Don’t online bulletin boards and directories just mean the head hunter has to spend more time in more places?

A: Yes and no. Online resources are more easily searched than, say, paper. Our recruiter directory gives employers the chance to search by geography or by vocation, or by the type of position. This means they can find a recruiter that specializes in pharmaceutical sales, or who specializes in accounting, or whatever field. The head hunter spends less time answering questions from people who will never be their clients.

Q: And I assume it works both ways?

A: Yes, the recruiter gets resumes from only those people who are likely candidates for the types of positions he works on. The pharmaceutical recruiter, for example will not get a resume from someone whose background is in aeronautical engineering.

Q: Wow, that’s a mouthful. I don’t know if I could even repeat that.

A: Many executive recruiters could not repeat it, either. So the Internet is making it easier for them to receive resumes targeted to their field of expertise, saving them time…not to mention overexertion of their tongues.

On that humorous note, we thank Esther for taking the time to explain how the Internet is making life both more complex and easier for executive recruiters and head hunters.

David Leonhardt

When it comes to selling property capital gains reinvestment can be an important strategy for homeowners and commercial and business owners. The Internal Revenue Service requires capital gains tax to be paid on the sale of all capital assets, including properties. Once the sale occurs the tax expense can be enormous, but with a little ingenuity capital gains tax can be avoided and the tax burden relieved. The sale of a home or an investment property can facilitate incredible steps forward for anyone in the real estate market. Planning, education and consulting the experts are the keys to increased buying power!

Uncover the Secret to Real Homeowner Potential

The Internal Revenue Service allows gain generated by the sale of a home to be excluded from federal tax returns. The homeowner must meet the IRS requirements for exclusion. Eligibility for exclusion is based on the five-year period prior to the sale. If a homeowner has owned the property for at least five years and lived in it as a primary residence for at least two years, as much as $250,000 of the gain does not have to be reported on the yearly tax return. For couples filing jointly, up to $500,000 can be excluded based on the eligibility of each spouse. An unknown fact in the real estate world is that exclusion can apply to the sale of vacation and rental homes if they have been used as a primary residence for two out of the last five years. This amount of unreported gain leads to huge savings and greater investment potential.

The Hidden Advantage of Tax Exchange

In the past property exchanges were regarded as highly complex. The current real estate market now agrees that property exchanges are trouble-free, secure and profit producing. Even if a commercial or business property owner sells and then immediately reinvests, capital gains tax must be paid. The Internal Revenue Code Section 1031 allows a taxpayer to exchange property used productively in a trade, business or investment for property of a like-kind. In the exchange the IRS does not recognize any loss or gain and the capital gains tax is deferred. This deferral allows property owners to utilize money originally budgeted to pay the government for investment.

Following the Rules Leads to Success

IRC Section 1031 has strict guidelines for property owners to follow while engaging in property and tax exchange. Consultation with real estate professionals, qualified intermediaries, lawyers and accountants is essential. Like-kind commercial and investment properties must be the same in nature and have comparable characteristics. The properties can differ in quality and improved property may be exchanged for unimproved property. The relinquished property must be exchanged for a property of equal or greater value, equity or debt. If the replacement property is of lesser value, equity or debt tax is then computed for the amount of the gain or the difference in value. The property owner must pay whichever cost is lowest. Also, properties are only considered to be like-kind when they are located within the same country. Properties within the United Sates cannot be exchanged for properties located outside of the country.

Time Is Money

Property exchange does not require the taxpayer to sell and buy simultaneously. The Tax Reform of 1984 imposed precise limits on the amount of time an exchange transaction can be in process. Property owners have 45 days from the sale of the relinquished property to identify a replacement property. The exchange must be completed within 180 days of closing or on the tax return due date for the current year. Do not miss identification or exchange deadlines! If these deadlines are not met the exchange is no longer qualified and the capital gains tax must be paid.

Armed with knowledge and creativity any property owner can increase their buying power and take their real estate success to even greater heights. Remember to find real estate and financial professionals to assist with adherence to the federal laws. Once you have learned to the most lucrative way to manage your ventures and capital gains real estate victory will be at hand!

Elaine VonCannon

Despite constant calls by politicians and policy makers to reign in government spending, the federal government remains the largest employer in the United States. According to the U.S. Office of Personnel Management, there are currently more than 2,700,000 employees working for the federal government in civil service positions. For nearly every federal job vacancy, the number of applicants exceeds the number of available positions by at least tenfold.

Why do so many Americans aspire to a federal job? The answers are diverse. Some consider it a patriotic duty, while for others it’s an act of enlightened self-interest. Whatever your motivation, however, the benefits are significant. Simply put, Uncle Sam is an excellent boss.

Working for the federal government offers employment stability that cannot be replicated in the private sector. Once a new employee completes a predetermined probationary period (usually 1 year), lifetime employment is nearly guaranteed. Laws and regulations governing federal personnel practices make it extremely difficult to fire, lay-off, or forcibly transfer most employees. On the rare occasions when lay-offs do occur, displaced employees are given very preferential hiring treatment for similar positions that becomes available. The result is that very few federal employees have ever missed a day of work due to a lay-off.

Fringe benefits, including an excellent retirement package, are also a major motivating factor. Health benefits for federal employees are generally better than those offered in the private sector, and the government currently picks up more of the premium costs than most private employers. For an employee enrolled in Blue Cross/Blue Shield’s family coverage, for instance, the government currently pays $578 of the $771 monthly premium. Retirement benefits are based on a complicated formula that incorporates the employee’s salary, years of service and retirement age, but independent studies consistently determine that the plan is more generous than nearly all private sector employers.

Federal salaries are competitive as well. In 2005, the average salary for all federal workers worldwide is $60,203. Due to the salary structure and political realities, raises are virtually guaranteed every year. In January 2005, the raise was set at 3.5%. In addition, salary adjustments are made for employees in major metropolitan areas.

Federal service also provides far more opportunity for advancement than most other employers. At the senior management level (known as the Senior Executive Service, or SES), salaries range from $107,550 to $162,100. There are currently approximately 7,000 SES employees in federal service.

With all of these benefits, it’s no wonder that many job seekers are trying to land a position with the federal government. While the competition is fierce, here are some key strategies that can help you in your search:

1. Check the government’s official employment web site (http://www.usajobs.opm.gov) often. Virtually every federal job vacancy is listed there, and it’s updated every day. Most vacancy announcement are only open for a period of approximately 3 to 4 weeks, and the application process can be detailed, so it’s best to check frequently so you can start working on your application as early as possible.

2. Avoid services that claim to help you land a federal job. Companies that guarantee you a federal job are scams, and these services can’t do anything that you can’t do yourself.

3. Be willing to accept a pay cut. While federal salaries are competitive, the compensation structure is such that salaries typically start low but increase quickly. Every federal job has a starting grade and a “full performance” grade. Typically, professional positions start at grade 7 in the federal pay scale (referred to as General Schedule-7, or GS-7), and increase to GS-9, GS-11 and GS-12 at 1-year intervals. For an employee in Washington, D.C., that would mean starting with an annual salary of $35,452 but earning $62,886 after three years of service (not counting the annual government-wide salary increases of approximately 3% per year).

4. Consider “trainee” positions. The term has a negative connotation, but starting in a designated trainee position can be a great way to get your foot in Uncle Sam’s door. These positions, which generally require no specific work experience, are typically filled at the GS-5 level ($25,000 - $30,000 per year). Because many federal jobs are only available to current or former federal employees, working as a trainee for a year or two often opens a lot of doors.

5. Read the vacancy announcement carefully. Procedures for applying for a federal job have been streamlined in recent years, but it’s vitally important that your follow the instructions provided to the letter. Unlike their private sector counterparts, federal hiring managers have to abide by standardized procedures without exception. For instance, they are legally prohibited from considering applications that arrive after the closing date on the vacancy announcement—even one day late. Likewise, if you don’t submit the requested documentation on time (transcripts, etc), they can’t collect it from you later.

6. Bulk up your resume. This may be good advice for any job hunter, but it’s particularly important when applying for a federal position because of the way initial GS grades (i.e., starting salaries) are determined. Many vacancy announcement can be filled at any of a few different GS grades, and the level at which a new hire is brought on board is determined by his or her years of pertinent employment history. It is a little-known secret that federal hiring managers want to start new hires at the highest grade they can justify, because by doing so they can minimize the risk of turnover. Most federal employees who leave government service before retirement do so during the first five years of their career, because starting salaries in the private sector are higher.

So, how can you help your new agency pay you more? If you’re in a position that makes it difficult to gain work experience in your desired field, remember that self-employment, if legitimate, counts as employment experience for federal hiring purposes. For instance, if you’re a stay-at-home mother with the goal of re-entering the workforce as a writer, working from your home as a freelance writer for three years would count as work experience when you apply for that federal job. Incidentally, on the date of this article there are currently 27 writing and editing vacancies listed on the USA Jobs web site!

7. Above all, don’t give up. Although the competition for federal jobs can be tough, the benefits are well worth the effort. Like any job search, most applicants can realistically expect to be turned down many times before they are offered a position. Tenacity and a positive attitude are the most vital assets you could have.

Sean Dunagan

1) Get CREATIVE

Don’t fall victim to typical or cliché financial goals that you know, from your own experience, you haven’t been able to stay focused on. Switch things up and simply commit to spending 10-15 minutes, one day a week, thinking about ways you can turn regular spending into savings. Choose a specific dollar bill, for example, a five or ten dollar bill, that you will separate and save for a special purpose every time one ends up in your possession. Or if you’re not ready to brown bag it at work, commit to drinking water every day with your lunch. This should save you about $1.50 a day, which, over an entire week should cover the cost of your lunch on Friday.

2) Pinpoint Financial STRESS

Not sure where to focus your financial efforts? Start by finding out where the greatest opportunity is by asking yourself, “What’s the one thing you don’t want anyone to know about your current financial situation?” The answer should concisely pinpoint the financial area of your life that needs your most urgent attention.

3) Sleep on IT!

It’s getting more and more difficult to keep up with Joneses who inevitable continue to raise the perceived standards of a good living. Commit to a dollar amount that you will not spend until you have thought it over for 24 or 48 hours. By avoiding compulsive expenses, you can save hundreds of dollars.

You can learn more about Robert Laura’s real life financial solutions and bill organizer at www.financialkarma.com

Robert S. Laura

Have you considered the lucrative opportunity in finder`s fees? You could become a professional finder and earn a fortune from this alone. Alternatively, you could supplement your present income with finder`s fees.

A finder is someone who finds something for a person or business. The amount paid for this service is called a finder`s fee.

What is the difference between a finder and a broker or commissioned salesperson?

A broker or commissioned salesperson gets paid a percentage of the sale made. Usually, such person acts as an agent for the owner of the goods or services sold. He becomes actively engaged with the sales process, supplying information to facilitate the sale, negotiates the contract, arranges financing, and completes paper work.

On the other hand, a finder simply introduces a buyer to a seller for a fee. He does not become involved in the sales process and is not an agent acting on behalf of the seller.

The best areas to earn finder`s fees are those in which you already have expertise and interest. For example, if you are an expert on airplanes and have connections in the aviation industry, you could earn finder`s fees finding suitable planes for those needing them.

You can earn finder`s fees in many areas including equipment (used or new), equipment leasing, finding locations for franchises or vending, scarce materials, commodities, financing, et cetera.

Connections are the inventory of a finder. You are being paid to find something of value by someone who doesn`t know where (or doesn`t have the time) to find it. Your knowledge of where and who to get something from is invaluable information that people are willing to pay for.

Protect yourself with written contracts. Also, document all efforts you have made to earn your finder`s fee.

Before you introduce a buyer to a seller, have the seller acknowledge in writing that they have agreed to pay you a finder`s fee of so much upon successful completion of a sale. After obtaining a properly executed written contract (which may be a simple one page letter agreement), inform the person by written correspondence (sent by registered mail) about the buyer. Keep all copies of correspondence and other written documentation in case it becomes necessary to enforce your rights later. Proper documentation should help you to avoid any misunderstandings.

Just as the business that sells something pays its sales staff, likewise the seller generally pays the finder`s fee. The seller is the one that makes a profit from the sale and so usually is the one that pays commissions or finder`s fees.

However, if a buyer is particularly anxious to buy something, he might offer a finder`s fee. Therefore, it is possible to collect such fees from either the seller or the buyer.

It is possible to find finder`s fees opportunities offered in magazines, newspapers, and newsletters. You can find additional opportunities by doing your own research. Use your contacts, reference and phone books at the library, the Internet, persons you know (or don`t know) who might have the information you need, as well as other sources to find what is needed.

For example, if someone tells you they can`t find a pilot with an airplane outfitted with geophysical survey equipment, have you considered talking to airport employees, pilots, business acquaintances, exploration companies and manufacturers?

Make sure that all your communications and dealings (telephone, correspondence, letterheads, contracts, et cetera) reflect the professional nature of your business.

You must be willing to do the necessary legwork and research required to earn your finder`s fee. As well, you must project a business-like, professional image and protect yourself with written contracts and other documentation. Above all, you must follow through and diligently apply what you have learned. In that way, you, too, will become a highly paid professional finder.

For further information about finder`s fees, visit: http://www.yenommarketinginc.com/finder.html

J. Stephen Pope

There can be more to a bank business loan than making interest and principal payments. Your firm may get a great rate on its new credit line or term loan but you may cry on the way home when you discover the hidden fees and charges.

Even seasoned borrowers can be caught off guard. Borrowing costs can be boosted by thousands of dollars and the effective rate on the loan increased by many basis points as a result of these hidden charges.

Here are some of the fees and charges that can increase your firm’s costs on bank loans:

Commitment fees

Many banks charge commitment fees of ½% - 1% or more to issue a commitment to lend money. The fee is calculated on the available credit amount. Commitment fees significantly increase the effective rate on outstanding loans.

These fees can be negotiated. If your firm has a strong credit profile or if the competition among banks in your area is fierce, ask for a lower commitment fee or ask to have it waived.

Non-use fees

These fees may be charged in lieu of or in addition to commitment fees. Non-use fees usually range from ¼% to ½% of the unused credit facility. Although these fees are less onerous than commitment fees, they also increase the effective borrowing rate.

As with a commitment fee, you may be able to get the non-use fee reduced or waived if your firm has a strong credit profile or if the banking environment is very competitive.

Restructuring fees

When your firm has reason to restructure an existing loan, you can expect your bank to charge a restructuring fee for the privilege. For example, if your company has reason to convert a short-term loan into a long-term one, it will probably be charged for this restructure.

These fees can range from ½% to 2% or more plus any bank legal fees or out-of-pocket expenses. If your firm has been a long-term bank customer in good standing, you may be able to negotiate or eliminate the fee. But don’t expect to eliminate the bank’s attorney fees and out-of-pocket expenses.

Bank attorney fees

Attorney fees usually come into play when the bank uses an outside law firm. Making matters worst, many outside bank attorneys require a borrower to hire an outside attorney to issue an opinion letter covering the transaction.

Usually, only the strongest borrowers in very competitive banking situations can totally eliminate paying bank attorney fees. However, if your firm is a valued customer, your bank may be willing to have these fees capped or reduced. Often banks have some leverage with their law firms to get a discount.

Appraisal/environmental evaluation fees

These fees are charged on many asset-backed loans. They usually involve bringing in an outside expert to evaluate equipment or real estate. These fees can be significant, depending on the type of appraisal or environment issue.

Like attorney fees, appraisal or environment evaluation fees are almost always for the account of the borrower. Perhaps the best result one can expect is to have these fees capped or have the lender split the amount in some way.

Unanticipated audit expense

Many banks reserve the right to audit borrowers or to send bank personnel in for inspections. An audit may be required to review accounting procedures or to monitor collections, inventory or another aspect of your firm’s operation. Also, some banks require outside audits by CPA firms in connection with extending credit. Any of these scenarios can create significant expense and involve a substantial time commitment for your firm.

Before signing, review your loan agreement carefully to identify any audit or bank inspection requirement. If your bank requires an audit or inspection that you did not anticipate, try to get it eliminated or try to negotiate limits. You may be able to get a less-stringent requirement or to negotiate a less-expensive alternative to the audit or inspection required by your bank.

If all else fails, try to get audit or inspection fees capped.

Late charges

Charges for making late payments to your bank are generally in your control. These charges can be onerous and can add significantly to your firm’s borrowing cost. It is not unusual to see banks tack 300 basis points onto a customer’s borrowing rate for delinquent payments.

While it is worthwhile during the negotiating stage of the loan to ask for a lower late- payment charge, the best solution is to try to avoid these charges. If you can, try to get the late-payment rate knocked down to 75 to 150 basis points above your borrowing rate.

Expiry of or Failure to Get a Rate-lock

In a stable rate environment, many banks are willing to lock the rate on fixed-rate credit transactions. Rate-locks protect the borrower from adverse rate movements prior to closing. In most cases, rates can be held up to 60 days. Rate-locks are not uncommon in real estate loans and equipment installment loans.

If your firm is negotiating a fixed-rate loan, try to negotiate a rate-lock. You may pay loan interest that is a tad higher, but a locked rate can eliminate an unpleasant interest rate swing.

Once you have locked the rate, try to stay within the holding period for closing the transaction. Most banks will eagerly and aggressively pass on rate hikes in a rising rate market, if you fail to comply.

Many hidden bank fees and charges can be reduced or eliminated if you plan ahead and are prepared to negotiate. You are in your strongest negotiating position before your bank issues a commitment letter and before you sign the credit agreement. Always read commitment letters and loan agreements carefully. Look for hidden fees, hidden charges and unexpected requirements. You can also ask your bank to prepare a separate list highlighting all potential fees and charges.

George A. Parker

GPO’s (Group Purchasing Organizations) have been around for about ten years primarily in the healthcare industry. The basic concept of a GPO is that a group of businesses can come together and buy products cheaper than any single company can. This model may or may not be beneficial for the Coca-Cola’s, Wal-Mart’s, or Johnson %26 Johnson’s of the world, but they are great for the small to medium size business because they allow the little guys to buy their products on the discount level of one of these huge corporations.

As industries are expanding and products are being developed, we are seeing GPO’s spread into the education, printing, office supplies, and consumer products fields. Manufacturers are willing to cut their margins and deliver products at wholesale prices for the volume of customers the GPO’s offer. In most scenarios GPO’s can save businesses anywhere from 20% - 40% off their already competitive prices.

GPO’s are exclusive to members meaning that your business would pay a membership fee to be a part of the wholesale buying group.

Two things to consider before becoming a member of a GPO.

1. Know what and how much you’re buying throughout the year for your business ex. (brochures, catalogs, envelopes, forms, paper, ink cartridges, etc)

2. Consider the membership fees versus your current cost and the savings that the GPO would deliver. If you are buying 500 business cards or 1,000 envelopes a year then a GPO would probably cost you more money than you would save.

All in all a GPO is a good way for you to effectively cut cost without having to compromise quality or service.

For more information on GPO’s contact Ken Hamilton @ 615-591-7722 or e-mail ken@onesourceinc.net

Ken Hamilton