Payday loan: A Complete overview

From different surveys, it is seen that the number of customers taking payday loan as well as payday lending companies are increasing frequently. If you are a person taking the payday loan for the first time or want to gather information regarding payday loan, then this article will be of great help to you.

Definition of payday loan:-

Payday loan is a very short term loan. Usually the term is 1-2 weeks. There are other names of payday loan like – “Cash Advance”, “Paycheck loan”, “Check loans”, and “Payroll advance loans”. After you get your paycheck, the loan is to be repaid. If you can not repay the loan amount plus lender’s charges for payday loan on your payday, you can rollover the loan amount by paying extra fees to the lender plus you have to pay the interest along with for the rollover period. So, payday loan can be termed a “Loan Sharking”.

Necessity of payday loan:-

By the end of the month, you may face some problems in maintaining some urgent family expenses like paying off your Medical Bills, Phone Bills, and Electric Bills, House Rent or some other utility bills. These things usually happen when you fail to maintain a proper budget at the time of getting your paychecks or not keeping your expenses up to your income limit. Hence in order to meet such urgent expenses you need a payday loan.

Payday loan companies:-

There are so many companies who are promoting check cashing facilities online. Besides some banks and other financial institutions also provides you with a payday loan. You can apply online for a payday loan or you can visit physically to an institution to avail a payday loan.

Conditions to be satisfied to get an instant payday loan:-

The criteria of different payday loan companies are-

1. You must have a job or there should be a regular source of income.

2. You should have a Checking A/c in a bank.

3. You should be an US citizen.

4. You should be at least 18 years of age.

5. Your monthly income should be at least $1000 Per Month.

Best application time of payday loan:-
If you apply for the loan from Monday to Thursday, you will get the loan on the next working day, i.e. Tuesday to Friday. If you apply for the loan on Friday, then you will get the loan on the next Monday, and if you apply on Saturday or Sunday, you will get the loan on Tuesday.
So the best time to apply for the loan is Monday to Thursday.

When will you get the money?
As the process is very simple to get the loan amount, in general you will get your loan amount within 24 hours of application. Company will check your documents and verify your data with an automated system named as VPN Based software, and then approve your loan. The entire process of verification of your identity and depositing the money to your Checking A/c takes 24 hours of time. There are some companies who will deposit the loan amount in less than 24 hours.

Costs of payday loan:-
Usually a payday loan company charges 15 to 30 USD per $100 borrowed. So, if you borrow $100, you will have to pay 115 to 130 USD on the very next payday. The APR of payday loan cash advance interest boosts up to 391%.

Maximum limit of payday loan:-
If you are taking a payday loan for the first time, you may get up to $500 for the first time. After you repay back your first loan amount in time, you can avail more than $500 when you revisit the company for another payday loan.

Think before taking a payday loan:-
1. You should keep in mind the APR factor of the loan before taking it. You should find the company which is charging a lower APR than its competitors.
2. You should take care about the privacy of your document and information. So, if the tendency of the company is to process applicant’s information in an encrypted page, you should think that your information will not be licked out, and then you can proceed on.
3. You should read the company policy and legal matters complied with before submitting an application form to them.

Repayment of payday loan:-
The lender company will take the money off from your checking A/c on the date of your payday. You should be ready and aware about your payday and the amount to be repaid. If you fail to repay the loan on the scheduled date then you may have to ask the lender to rollover your loan amount.

Alternatives to payday loan:-
1. In order to avoid taking such high interest loan like payday loan cash advance, you should make an appropriate budget which is according to your income.
2. You may also save certain amount of money from your paycheck every time you get it.
3. Before taking a payday loan cash advance, you should be looking for a loan from a friend or relative as they will not take any interest for lending the money to you. Another thing is also involved here that if you not be able to repay the money in future, you may not have to run away from your creditors.

Building Your Own Talent Pool: 8 Challenges and 8 Possible Solutions for the Banking Industry

Banks manage financial assets and the success of that management is dependent on the capabilities of the persons who manage those assets.

Therefore growth in this sector is dependent on effective management and leadership capacity and dominance in retail services is directly related to the expansion of the branch network through which the bank’s retail products and services are distributed.

The central departments or bank headquarters form the nerve center of the bank by providing direction, developing new products and services, handling high value investments, treasury management and credit activities. However, it is through the network of bank branches that the retail services developed by the central marketing function are distributed. The network of branches acts like the five senses as well as the arms and the legs of the body by sending critical information from the field to the central departments and executing the corporate strategy by successfully linking the needs of the public to the products and services developed to meet those needs.

The quality and the quantity of that exchange between the branches and the central departments have a great impact on the ability of the bank to leverage its products and services in the market. Simply put, the branches are the points of sales for all the retail products and services developed by the bank. Even though sophisticated, high-value products and services are facilitated by the central departments concerned, the ‘retail services’ are the ‘Cash Cow’. A bank’s ability to expand its branch network through which its products and services are distributed is therefore critical to its growth and profitability.

The question arises – “What is that growth dependent on? And the answer is – “It is dependent on the human capabilities available in the form of individuals who have the skills, the knowledge, the experience and the personality to successfully manage newly established branches. Herein lies one of the major challenges faced by many banks: Their need and their readiness to open new branches both in the home country and abroad is frustrated by the scarcity of individuals who are genuinely capable of successfully launching a new branch or ‘turning-around’ an existing branch.

The purpose of this article is to explore some of the reasons for the scarcity and to suggest some things that can be done about it the in the short term and in the longer term.

8 Challenges and 8 Possible Solutions

Challenge 1: There is no training and development program designed specifically to prepare individuals to move from ‘competent employee’ to ‘competent branch manager’ with the requisite leadership skills.

Solution: Identify individuals with leadership potential as early as possible in their careers through various activities and through multiple sources and methods. For example, if ‘leadership’ is identified as one of the core competencies of the bank and it is fully integrated into the appraisal system at all levels, there will be regular feedback through the performance appraisal system. This feedback can be further validated through regular Assessment and Development Centers designed to identify talent in various areas. Once identified, a clear career path should be presented to these individuals and a systematic development program applied to ensure that we not only identify capable individuals but that we retain them. A clear career path with well defined requirements for moving from one position to another contributes very strongly towards the retention of ambitions and talented leaders. When linked to ‘Succession Planning’ there will also be a timeline that ensures adequate preparation for successors and minimal disruption of work due to sudden departures.

Challenge 2: The competition for talented individuals who have the potential to lead is very high because the demand far exceeds the supply. This increases cost because salary levels have to be raised in order to attract and hopefully keep the best talent.

Solution: Recognize that intelligent and talented individuals are looking for something more than just the salary. So make your bank one that attracts the kind of people you want. Intelligent individuals with leadership capability are looking for a credible organization where they can grow and where they are given the opportunity to contribute as well as enjoy the fun and challenge of working in that place.

Challenge 3: The type of person who is good at managing the branch operations and attending to all the administrative details may not necessarily be good at leading and managing a bank branch from a commercial perspective. Therefore the assumption that it is possible to promote the operations manager to branch manager and then bring someone up from the ranks to handle operations is simply not valid.

Solution: Recognize that ‘Work Preferences’ are an even more powerful predictor of job satisfaction and productivity than academic qualifications and experience. ‘Work Preferences’ must be measured, understood and built into career management and staff retention programs. A person who is good at one thing may not necessarily be good at another. The ‘Work Preferences’ that make a good operations manager are the exact opposite of those that make a good branch manager. When Operations Manager and Branch Manager positions are filled with individuals whose ‘Work Preferences’ are congruent with their skills and their roles it leads to complementary. This increases to a high degree the potential for a great performance. Therefore ‘Work Preferences’ should be factored into the recruitment, selection, career planning, talent management, and succession planning and retention programs of the bank.

Challenge 4: The ‘Critical Success Factors’ for the position of Branch Managers need to be redefined so they reflect current market realities. The branch manager certainly needs to have a solid foundation in the banking know-how that brings the highest revenues to the bank – Credit and Trade Finance. There are far too many branch managers that are not really able to discuss business affairs with their more sophisticated clients in a satisfactory manner. Moreover, many are also unable to adequately coach their staff on the effective preparation of credit files or trade finance documentation and credit.

Solution: Develop a rigorous testing and evaluation system in these areas and use it as a pre-requisite for promotion to the position of Branch Manager. In other words, if candidates for promotion to the position of Branch Manager are unable to pass a knowledge test and a practical skills assessment, they will have to develop their abilities and pass the tests and assessments in these areas before their promotion can go through.

This will contribute to building a sense of professionalism in the sector.

Challenge 5: There is little or no emphasis on the essential ‘soft skills’ for branch management. This includes the effective management of people – inspiring, motivating, developing and challenging them to get the best results. The soft skills are underrated in comparison with banking techniques, whereas they are equally important. Here there are a wide range of skills that are vital to success; the least of which are customer relationship management that goes beyond dinners and lunches or funerals and weddings. Business Ethics is another critical area that must receive attention in light of the recent global economic crisis.

Solution: Develop a set of corporate values and a clear set of interpersonal and managerial competencies that are ingrained into the psyche of every employee through an ongoing coaching and mentoring program. Train and develop your managers so that coaching and mentoring is part and parcel of their daily routine. As they communicate these values and build the competencies into daily behavior, they will contribute to the creation of a new corporate culture where those who do not fit will move out and those who do will move up. This will increase the supply of better qualified candidates for leadership and managerial positions.

Challenge 6: Many think of the Branch Manager as a Public Relations Officer or a Liaison Officer facilitating the exchange of documents and information between the central departments and the branch. In fact many banks have designed the job of the branch manager so that he or she is no more than an informed ‘button clicker’ authorizing transactions through the bank’s operating system. Certainly the ‘control’ function is a very important one and one that cannot be relinquished. However, it has to be considered in light of the role of the branch manager and the optimal utilization of capacity.

Solution: Answer the question of what exactly is the role of the branch manager and what is the most valuable contribution that such a manager should be making. Unless this question is discussed in depth and in light of the future strategy of the bank the role of the branch manager will remain vague and will by necessity be defined by the personal preferences of the individual occupying that position. Those who like dealing with people will become Public Relations Officers, those who like dealing with things and with numbers will become Controllers, those who like ‘challenges’ will become Demanding Bosses. Each role has its merit but the bank needs to decide which role it wants to emphasize and to select its managers accordingly. The important thing is that the decision must be aligned with the banks corporate strategy for growth and expansion.

Challenge 7: From the branch manager’s perspective the question always arises: “Do I have any real power or authority within this centrally controlled structure?” There is no doubt that there are those who will take charge and confidently communicate with the central departments and get the support they need and there will be those who perceive themselves as waiting for orders and are therefore not really responsible in the final reckoning.

Solution: This relationship needs to be considered and clearly defined including the identification of the inevitable ‘grey areas’. Some individuals will be able to rise to the occasion but are waiting to be invited or to be told that they do have permission of the ‘powers that be’ to interact assertively and openly with the Central Departments. They are on the same side.

Challenge 8: Branch Managers also ask: “Where do I go from here? What is my future? Do I remain a Branch Manager for the rest of my life?”

Solution: The answers to these questions are critical to attracting suitable candidates for the position. This is also linked to the role we want our branch managers to play. Are we looking for ambitious entrepreneurs with a solid ethical grounding who are prepared to go after promising opportunities? Or are we looking for ‘button clickers’ who will scrutinize the details, follow the rules and religiously adhere to procedures? Or are we looking for someone who enjoys being a Public Relations officer and gets along really well with people but lacks the solid banking knowledge that will yield high returns from these customer relationships?

This is an important decision as it will determine who you get to fill the position. If you don’t want to settle for taking the first ‘okay’ candidate, a decision must be taken.

Looking at these Human Capital challenges and solutions leads us to propose two main courses of action. One is to make the most of the current situation and the other is to be better prepared for the future. Below are the details on both approaches.

Short Term Human Capital Investment:Take advantage of the current crisis to recruit the talent you really want and to build a pool from which to choose in the future. In the Harvard Business Review you will find steps of consideration to ensure that when you do hire, you hire the right person, at the right time, with the right skills to ensure that when you need specific outcomes, your people are able to deliver.

Hiring Top Executives: A Comprehensive End-to-End Process

1. Anticipate the Need

  • Conducting ongoing, proactive analysis of future needs.
  • Continually evaluating the pool of potential talent.
  • Developing rigorous periodic forecasts of the company’s talent needs.

 

2. Specify the Job

 

  • Defining the specific demands of the job.
  • Specifying which skills and experience are relevant.
  • Identifying the team the candidate will need to work with or recruit.

3. Develop the Pool

  • Developing a large pool.
  • Including insiders, outsiders, insideĀ­rs, outsiders, and outside-insiders.
  • Considering people on the periphery of the organization (employees in remote offices, consultants, suppliers, customers).
  • Tapping your networks and involving the right external partners.
  • Asking candidates’ peers for nominations.

4. Assess the Candidates

  • Using a small number of high-caliber, well-trained, properly motivated interviewers.
  • Employing rigorous behavioral event interviews.
  • Conducting detailed reference checks.
  • Including top stakeholders in candidate assessment.

5. Close the Deal

  • Demonstrating active support for the candidate’s interests.
  • Describing the job realistically.
  • Involving the hiring manager personally, not just HR, in closing the deal.
  • Ensuring that compensation is fair to other employees.
  • Involving C-level for top positions.

6. Integrate the Newcomer

  • Using veteran top performers as mentors.
  • Making sure the newcomer checks in regularly with boss, mentor, and HR even when no problems have arisen.

7. Audit and Review

  • Removing bad hires within the first year.
  • Regularly reviewing recruiting practices.
  • Identifying and rewarding excellent interviewers.
  • Holding all assessors accountable for the quality of their evaluations.

Source: Fernandez-Araoz, C, Groysberg, B and Nohria, N 2009, ‘The Definitive Guide to Recruiting in Good Times and Bad’, Business Harvard Review, vol. 87, no. 5, pp.79.

Long Term Human Capital Investment:

Identify, develop and retain top talent by using a number of structured and unstructured innovations in ‘Talent Management.’

Build Your Own Talent Pool

Forward-looking Banks today realize that what limits their ability to expand and develop retail operations is the availability of qualified managers to head new branches. The absence of an effective second or third line management layer within a bank means that the bank will face a succession crisis if there isn’t a swift and effective response to this reality.

The challenge is how to make sure that the right persons have been selected and that the path of their development and training will be one that properly prepares them to carry the bank into the 21st century. More importantly, will these individuals be ready to respond to the impact of the political, legal / regulatory, environmental and social changes in the world and in the region? Will they be prepared to handle the reality of borderless financial markets and the ever-increasing pace of technology driven change?

There is no doubt that banks already have or are actively recruiting high potential individuals to lead their banks into the future. The problem, however, is how to accurately identify and accelerate the development of these high potential people so that they can get to where you need them to be in 1 or 2 years instead of five or ten. The second challenge is how to retain them.

These are the challenges that this Bank Branch Manager Accreditation program addresses.

CRITICAL PROGRAM SUCCESS FACTORS

This is an ambitious program and dictates that we proceed with full awareness of the necessary conditions to ensure success.

  1. Full support and or commitment from top management.
  2. Selection on merit and competence so that the investment is made in the right people and the program is perceived as credible.
  3. Selection on merit and competence so that the investment is made in the right people and the program is perceived as credible.
  4. Address the expectations of all stakeholders to prevent misconceptions regarding the outcomes of the program.
  5. Develop a supportive succession and retention plan for those in the program and those directly impacted by them.
  6. Set a realistic budget for this project and demonstrate the high return on investment.
  7. Give the program the optimal time for successful implementation.

OBJECTIVES

The main purpose of this program is to prepare successful individuals to fit smoothly into the role of future Branch Manager of fast-growing banks that have a regional and or international client base. This will involve a number of subordinate objectives:

  1. Train and develop future Bank Branch Managers quickly, effectively and economically.
  2. Use techniques that will bring out the best in your staff and help you decide, without a doubt, where each one will perform best.
  3. Ensure that the development program is totally targeted to your bank’s culture and business strategy.
  4. Identify those who can deal with high change and high stress business environments.
  5. Differentiate the true team players from those who do better alone.
  6. Change your corporate culture to reflect the values and competencies that are vital to the future success and sustainability of your business.
  7. Provide real management experience at low risk to you and your staff.
  8. Involve more than one group in the change process to ensure maximum ‘buy-in’ or ownership of the development process.
  9. Increase the supply of qualified candidates and so reduce the risk of poaching by competitors.

The more we know of human nature and the workings of the human brain, the more we realize that the story of our lives is written in every cell of our body and shaped by every significant relationship. The importance of getting the right people in the right place and the right group of people working together cannot be overestimated. The right outcomes will seem to come as if by magic.

The Critical Stage of CNBC Fast Money

This is a critical time for CNBC Fast Money with initial tests being conducted. It was noted that the CNBC rating has plummeted in the past years as cynical stock traders tried to escape the slowly crumbling industry. However, CNBC executives believe that the market is reviving to its old glory, even with the verge of new competition. How can we say that this US financial investing TV programis profitable?

Even though CNBC ratings might have been suffering from negatives, the network is still in high-revenue tier. Take note of its pretax income of about $ 270 million. With the US reserves and economic monitoring will continue to be the meat of financial talk shows, which is really the nature of the network’s plan to entice its viewers. However, this financial TV program is seen to be more appealing to a more natural type of consumerists or those traders who doesn’t give so much fuss about the weak points but just want to try venturing out with stocks and try to be rich. Is stock-picking important to CNBC?

The answer is yes. The kind of stock-picking in CNBC Fast Money is quite sensitive. In the past trading years in 1990s, CNBC received criticisms for including too many members in the panel who sometimes crazily peddling on stocks even without careful analysis. But CNBC defended that they had found a way to offer new responsible programs. However, the primary idea of the show will still revolve around turning money in the shortest period of time. What are expected changes in CNBC Fast Money?

Since news and analysis on financial trends have turned into measly commodity of the financial world, the network has to consider presenting news and financial information in the most innovative way without compromising responsible programming. The executive producers also want to include cultural relevancy on the program by providing access to the viewers and teaching them how to use such information for their stock trading. How could this happen?

Perhaps the secret of CNBC Fast Money is to widen its appeal without compromising its reputation among its advertisers. The network targets Class A and B market to maintain its standing as a major player in the business world. Fast Money TV program is indeed a primary network asset of CNBC. However, programming is in constant change with new ideas cropping up to develop the program and to implement changes. Talk shows and late night shows could be a challenge yet Fast Money is still a major TV phenomenon.

Options For Getting Your Taxes Prepared

When tax season rolls around each year the are a number of individuals who need to decide how their tax returns will be prepared and filed. Each taxpayer has a number of tax preparation options. These tax preparation options can include self preparation or hiring the services of a tax professional.

Individuals who makes the decision to hire the help of a tax professional are likely to hire an accountant or professional tax preparer. The majority of professional tax preparers are employed by a large company that specializes in tax preparation. Taxpayers are often required to take the necessary documents to a tax preparation office. Popular professional tax preparation companies include H&R Block and Jackson Hewitt. There are likely to be other smaller or locally owned tax preparation companies located in cities or towns throughout the United States.

Taxpayers also have the option of hiring an accountant to prepare and file their taxes. Many individuals who have complicated financial records are likely to hire the services of an accountant because accountants are not only trained in tax preparation, but bookkeeping as well. When choosing a tax accountant to do business with taxpayers are encouraged to ask an accountant about their qualifications or relevant business experience. There are two main types of accountants. One is a person that may just have previous accounting experience and then there are certified public accountants (CPAs). Certified public accountants (CPAs) are required to take a set number of college credits and pass a CPA exam before becoming certified. Certified public accountants are likely to charge their clients more money; however, they tend to offer better results due to their large amounts of training and experience.

The only downside to hiring a professional tax preparer or an accountant to do your taxes is that they are likely to cost a large amount of money. The majority of accountants and other professional tax preparers charge their clients based on the number of state and federal forms that need to be filled out and how complicated they all are. It is not uncommon for an individual to pay over one hundred dollars to have their taxes professionally prepared. For this reason there are many individuals who decide to prepare their own taxes.

When an individual decides to prepare their own taxes they have a number of different tax preparation options. Until recently the majority of taxpayers who prepared their own taxes relied on paper tax forms to file their taxes. Paper forms are not as popular as they used to be; however, there are still many individuals who use them. The majority of taxpayers have federal and state tax return forms mailed to their residence. This is a convenient option that is given to all previous taxpayers. Other taxpayers can obtain federal and state tax forms and their instruction booklets by visiting their local library, post office, or bank.

The reason why paper forms are not as popular as they used to be is because of the development of tax software programs. Tax software programs are available for purchase online or in most retail stores. They are designed to allow individuals to prepare and file their taxes accurately and quickly. There are many tax software programs that transfer a taxpayers information from one form to the next. All tax software programs have a mathematical checker that prevents a number of errors from being reported on a tax return. Tax preparation software programs often come in a standard, deluxe, or premium version. The deluxe and premium versions are likely to include both federal and state tax return forms while the majority of standard versions only include federal tax return forms.

Once a taxpayers make the decision to have their taxes professional prepared or self prepared there are still more decisions that need to be made. Individuals are encouraged to examine their situation and decide whether they should hire an accountant, take their takes to a tax preparation office, file paper tax returns, or use a tax preparation software program. Each taxpayer is likely to make a different selection based on different circumstances. What are yours?

Income Tax Preparation

Income tax preparation is an important aspect of everybody’s life. Each April 15th, United States citizens scramble to get their tax return preparation completed in time for the deadline. In order to make income tax preparation easier, there are many tools available to help make the process smoother. Free income tax preparation and online income tax preparation are methods that are readily available to help make tax season a bit easier.

Free income tax preparation is often available as an incentive for refund anticipation loans. A tax specialist will analyze your finances and prepare your taxes. If it is determine you are entitled to a refund, they take a percentage of that refund.Consequently, the tax preparation service makes money, but not until your refund comes through. There is no out-of pocket expense to you, plus you get the added assurance that your tax preparation is done thoroughly and accurately.

Online income tax preparation is available at many locations to assist you with your filing. The income tax preparation software usually consists of an easy-to-use interface which asks a series of questions. You will answer each question then move to the next screen. Some questions will not be applicable to your particular situation so you will choose the “not applicable” option and continue. The professional income tax preparation software thinks of everything for you. You do not have to be familiar with tax laws or the complexities of tax preparation. Instead, the software will cue you to the possible deductions you may be allowed to take.

Simply answer all the questions on the tax preparation software as completely as you can and your tax refund or payment will be automatically calculated for you. You will then have the option to print out the forms for your signature and submission. If you choose this option, print all the necessary forms that the tax preparation software informs you that you will need. Sign all the forms where appropriate, and attach any supporting documentation. Most income tax preparation software will generate a checklist that you can use to ensure all supporting documentation and forms are properly enclosed.

Many online income tax preparation software systems have electronic submission capabilities. This way, you can file all the necessary tax paperwork without having to go to the post office to wait in long lines. This is especially useful when it gets closer to the tax deadline and many people are rushing to get their taxes posted. The lines can be outrageous and being able to file your return from the comfort of your own home is much more convenient.

Tax preparation help can be found on numerous websites and at the Internal Revenue Service website. If you have a question about the proper way to complete your tax preparation or what forms to file, the Internal Revenue Service website is a great place to look for tax preparation help. Income tax preparation software also often has available tax help files and links for resources.

Tax preparation services are another useful option for tax preparation. Tax preparation services can often be found in kiosks in shopping centers or malls as well as in stand-alone offices. Tax preparation services work for a fee, but they hire highly skilled accountants and tax specialists who will know exactly how to most effectively prepare your taxes to get the maximum amount of deductions. The person who prepares your taxes will walk you through a series of questions and will possibly ask to see certain types of documentation. This process will assist them in developing the most thorough and accurate tax return possible.

Federal and state income tax preparation can often seem like a daunting task. Free tax preparation is available for those who are concerned about their budget. Any fees that are applicable are generally deducted from your refund so there are no up-front costs. Online income tax preparation is available for those who want the convenience of preparing and filing taxes online. You can avoid the long lines and hassle of the post office by choosing this option and you can generally get your refund, if there is one, directly deposited into your checking account. Income tax preparation services are also available at a fee, and are generally used for more complex tax returns. All options are readily available and easy to use. Any of these options will make your tax preparation much easier and less stressful.