Management Advisor – Know Your Client

The contribution of the external advisors in supporting companies (on business or organizational issues) is open to a continuous dispute. As a professional in that area I would like to contribute to that discussion with the following argument; advisors need to know more about their client.

In the financial world the external advisor is kept to an increasing set of guidelines. Since the problems on the stock-exchange in the beginning of this new century, financial authorities have set out new rules for banks and commissioners and other agents that advise private clients on financial matters. The most important rule is the introduction of client profiles. Such a profile communicates the risk-attitude of the client in the investment process. In this way both the client and the bank (advisor) are aware of the risk that is acceptable. This is a strong management guideline.

Both the bank advisor and the business advisor have a stake in the advice. Banks are said to issue too much BUY advices, whereas business advisors too much dwell on the advice to change things in the business. A change in business is like a financial BUY; it will cost money and the advisor will profit from it.

“Clients are not interested that you tell them not to buy,” is what you hear financial advisors say. It is true. Buying gives hope and expectations. You are in the game and you get excited.

Another argument is that financial advisors should invest for themselves. If not, “how can they be ever good advisors?” This is another argument but there is only a small fundament for it. You could equally argue that if this is true you are facing the risk that you enter a pyramid game. You can better trust the advisor if he is neutral (and not involved). This is why there are Chinese walls; the investment side of the bank and the retail side are not connected.

Neutrality is the best position for the business or management advisor too. If you are selling a package and you advise others to buy it they should at least know that the advice is biased.

Where business advisors can increase their professionalism is in knowing the client’s business and organization. The financial advising industry has past this point, as explained previously: they know the risk profile of the client.

Advisors in business still have a way to go in this sense. There are often two camps. There are those advisors that know everything about (the) business. They have specialized on Logistics or Client Relationship Management. Others are perfectly knowledgeable about the organization, about culture or human resources. The first is the “hard” side, the second the more “softer” side.

If you are hiring a specialist than this shouldn’t matter, the specialist can serve in any area in the company. Advisors on the other hand should know or understand “the company.” This is more than a set of specializations. It is about understanding what they add up to. You might imagine that the business owner knows the business well enough. The contribution of the advisor is to explain where business and organization meet in case of a change (when BUY-ing a new instrument).

When it comes to the advise on a new investment the clients’ profile is important. Different companies will require different solutions on a similar problem. What served one company doesn’t necessarily suits another.
Financial advisors know the risk profile of their client. Management advisors should know about this (risk) profile too. And that is more than (knowing) the manager that hired you.

© 2007 Hans Bool

Loans and Debt Management

If you have loans that you cannot pay at present you may be looking for a debt solution. It is not uncommon to accumulate a number of loans over a period of time, never thinking that it may not be possible at some time to service the debt that is being taken on.

It is sometimes forgotten that past commitments go on for quite some time and Loans as well as credit cards and store cards can build up, so that after even a short period of time, these credit commitments can add up to a sum that cannot be paid on proper terms.

We get calls to our free help line from people with loans who now cannot service their monthly commitments. We are always able to offer debt solutions to our callers, which may range from debt management to bankruptcy.

If the debts that you have are £15,000 or less and there is the ability to make payments of £100 or more from disposable income then it is very likely that one solution offered will be debt management.

A typical loan repayment may be several hundred pounds per month. If two or more loans have been accumulated, then a significant loan schedule will be due. These sums can be cut by three quarters with a good debt management plan.

The debt management company will often be able to get the loan company to stop interest accumulating, and charges from being imposed. The Loan company may accept lower payments in lieu of the full payments, which will make the loans easier to service.

The debt management company will charge the first months payment as a management charge, and then about 15% of each subsequent month as a management fee.

In return for this the debt management advisors will collect in and distribute your money each month to your creditors, they will handle all correspondence, and make sure that matters run smoothly.

It will be possible to run the plan this way for as little or as long as required.

Help With Credit Card Debt – How to Find Legitimate Debt Management Advisors

The recent widespread wave of debt ridden people has popularized the concept of debt management. Even just having a knowhow about the subject prepares you for the worst of times ahead. However its also a matter of great concern that many people have been unable to find the correct or legitimate debt management councilors or advisors. Therefore having some basic knowledge about settlements and debt consolidation is greatly advisable before hiring professional help. Using some web help you must first understand the pros and cons of each debt relief programs. It becomes a much easier job when you have already gone through a lot of written material over the subject and have already seen names of many debt management companies written all over many websites.

Now when you have seen so many websites of companies after companies offering solutions to your debt problems it becomes a confusing affair. Look for the companies who offer you a straightforward reply to all your queries. Such companies will look at your details and offer you the best they can without laying down any compromises. Now the best ways to see if a company is telling you the truth is to first check their affiliation with bodies like International Association of Debt Arbitrators, the Association of Settlement Companies and the U.S. Organizations for Bankruptcy. Next try to find if there are any complaints against the company in government websites of state attorney general. When you contact a company always steer clear of a company that asks for huge fees or one that you are unable to contact during normal working hours.

Another good sign about a completely legitimate company is that they offer free workshops to help you to manage your earning and financial management. They spend a considerable time in also getting to know your financial situation. Also see to it that the company does not try to rush you into making any decision. After this its all your decision that counts, if you are totally comfortable with the help that your advisor company is offering you then go for it. It might just prove to be a life saver!