What Business Owners Can Do to Plan Their Financial Outlook for 2014?

Many small business owners lament that the past few years have been difficult financially. Yes, the recession hit hard and the recovery is going slowly. However, with the proper planning, any business can thrive no matter what the economic landscape.

Unfortunately, many small business owners are so busy putting out daily fires and just trying to stay afloat that they never take the time to plan. That's a mistake! So if you're ready to make 2014 your best year yet, here are the key financial planning items to focus on for both the short- and long-term.

• Reduce your debt.

If you're like many small business owners, you may have financed your business on a credit card or through other personal loans. Now that debt is hanging over you like a dark cloud. Even worse, you're likely putting any profits you make back into your business rather than putting more money toward paying off your debt.

Outsourcing Bookkeeping Has Huge Benefits

If you have ever thought about outsourcing your bookkeeping there are some real advantages that save not only time, but money as well. We live in a Global world and taking advantage of outsourcing can actually help businesses hire more employees locally rather than fear losing work overseas. Due to the availability that the online world provides, it's becoming more and more practical for companies to take this one step further. Instead of having an in-house bookkeeper, or doing it yourself, many businesses are finding a multitude of advantages for outsourcing bookkeeping. Here are a list of benefits you can realize by outsourcing your bookkeeping.

What You Can and Cannot Find Using the Personal Loan Calculator

The best things in life can be bought. Yep, just about everything, if you set your mind to it. Be it your dream car, a beautiful home, an education from a renowned university and so on. Arguing that happiness can't be bought is beside the point because happiness is in fact a mood, not a commodity. So, how can you buy what you want? What if you didn't have the money ready at hand or in your bank account? Well, fret not. Here's a solution, designed just for you! A wonderful solution called Personal or unsecured Loans. Irrespective of your use for it, these easy loans are readily available within a short period of time and they are customizable! There are several banks as well as financial institutions offering unsecured loans at interesting interest rates. But, the underlying question is how much can you afford? There are certain prerequisites even to be able to apply. Yes, the best things in life can be bought which automatically means there's a price that comes with it - it's just a question of affordability.

Rather, in the case of Personal Loans it is a question of how much emi (and interest rates) can you afford to pay while at the same time you don't inconvenience your family monetarily. So, here's the deal - you make up your mind how much money you would like to borrow and then check if you are eligible. The contributing factor would be how much you earn i.e. your net take home salary every month. Once this is done, all you need to do is go online and search for an emi calculator and you will be able to make a guestimate of the amount of equated monthly installment you'll have to forego as part of your salary. The other important aspect that will come to light would be the interest rate which in turn varies with the tenure you have chosen.

How a Secured Credit Card Can Help Your Credit Rating

The creation of the card as a means for payment has become most convenient for us in an everyday practical sense. No need to carry around vast sum of money with us. A simple swipe of the card allows us to make payments from as tiny an amount as we choose, to a large one as well. With our credit card we can do almost anything online. Pay our vendors, purchase items from shopping websites, and handle our accounts. It has made banking online a reality, as with its electronic verification system it allows us transfer funds from one location to another.

In order to increase the versatility of the card, banks offer a variety of different cards to suit various customer needs.

1. Some cards are meant for businesses while others are tailor-made for personal banking needs.

2. Excellency Infinite Card is on offer to their most valued customers. It has been created to meet the highest possible expectations with exclusive services and superior benefits. It provides the card holder with unparalleled benefits and the maximum purchasing power.

Ways to Make Extra Cash This Holiday Season

Who doesn't want to make a little extra cash? Especially with holiday spending here, it would be nice not to completely burn through the savings account. There are a variety of ways to make extra money this holiday season. Some include:

1) Freelance: this is great for any writer, photographer, even caterer to look into. Freelancers get a set amount of money from a project. 

2) Sell gold jewelry: scout antique shops, if you don't have any and see if you can find real gold there. Antique stores are full of little treasures that may be worth something to you. 

Community Banks Offer Several Advantages

Quick credit decisions and local ownership combined with personal service and reinvestment in the community are among the top reasons to choose a community bank over a large, commercial financial institution.

"When it comes to loans, decision makers are on-site, accessible and ready to help customers through the lending process quickly and efficiently," says one bank representative. "They're committed to knowing their customers' personal situations and recommending products or services that are tailored to those specific needs."

According to the Independent Community Bankers of America (ICBA), there are nearly 7,000 community banks across the United States. Located in small rural towns, suburbia and large-city neighborhoods, they improve this country's overall economy and communities by lending to local customers and funding nearly 60% of all small businesses under $1 million.

How To Find A Good Bank

There are a selection of things which we have to decide in life. One of the most important things which you have to decide is what type of bank you ought to be working with. The money you earn is essential to paying off bills and giving clothes to your family. That may be why you will need a place that is going to keep it in safe hands.

The neatest thing to do would be to locate the top banks that can be in your area. Call all of them up and request some information from them. Ask them what type of fees they've, if they've online banking, and what kind of interest levels they give out to those who might want to take out a loan with them.

Personal Finance Management - Start Managing Your Finances From Now Onwards!

Personal finance management is not a thing which is taught in schools and colleges. It is something which depends upon your wisdom and financial goals. If you are focused in life and clear about everything, then managing personal finances is not a tough job to perform. There's no hard and fast rule that you need to save heavily in order to acquire more funds in the bank account. Even small savings can fetch you decent amount. For stability in financial status, you need to do a little bit of homework and plan your financial expenses. Without restricting yourself for expenses and other things, your financial planning is worthless. Here, I have provided some of the useful tips required for personal finance management. Have a look.

Maintain a monthly budget 

Try to maintain a record of your monthly expenses. This thing does not ask for restricting yourself for making expenses. It is just an attempt to get an idea regarding how much you spend in the duration of 30 days. Keep all your receipts alive and try to figure out what are your needs and how much you saved. This is an effective measure to keep an eye on expenses.

Financially Benefit From a Little More Positivity

Your brain is constantly expanding creating millions of associations with your current and past experiences. For instance, when you were picking a name for your child your conversation may have looked like this:

"How about Johnathan?"

"No way! I dated a John in high school and it did not end well."

"Mike?"

"Mike reminds me of that creepy coworker at my last company."

These people were not likely in your mind until the name-game started, but your past associations led to your distaste. The thought of naming your child John would be a constant reminder of that high school experience. You may have met many other Johns that were completely normal, but the one that sticks out was not.

Are You Prepared for Early Retirement?

As a person who has just taken early retirement through choice, I count myself fortunate. In these austere and worrying times, it is all too common these days for people to be "forced" into early retirement.

It is all very well to receive a lump sum settlement which can, depending on your circumstances, seem attractive. However, if the underlying raison d'etre remains the fact that retirement is retirement, regardless of it being early through choice or force, then reality may kick in sooner rather than later. The next year or two may be financially safe, but if caution and prudence are not strictly adhered to, then the settlement can sometimes be frivolously thrown away.

We have discussed before the "denominator" effect and how the calculation of "cash to the end" requires close scrutiny. However, if there is no prior warning of early retirement being thrust upon you and if, as a consequence of that surprise, you have not planned ahead, then choppy waters may be straight ahead.

How Can I Save Money on a Child's Christmas Gifts?

Anyone with young children, or even grandchildren, will now how costly toys are to buy. Most of us want to give our children a great Christmas and make sure that they get the gifts they want, and deserve.

As well as trying to find the best gift for a child, the question on most peoples lips this year is likely to be:

"How can I save money on a child's Christmas gifts?"

The simple rules to saving money on gifts.

There are some very simple rules to follow if you want to save money when trying to buy the most popular Christmas toys this year.

Euro makes move on yen, China shares outperform

The euro raced to fresh highs on both the yen and U.S. dollar on Wednesday, while Shanghai stocks shrugged off geopolitical concerns to outpace an otherwise lackluster regional performance.

European stocks were poised for a subdued start with financial spreadbetters expecting flat to small gains for Britain's FTSE 100 (.FTSE), Germany's DAX (.GDAXI) and France's CAC 40 (.FCHI).

The single currency touched a four-year peak against the yen and a one-month high on the dollar as speculators wrestled with major chart resistance at 138.00 yen and $1.3600. A break here would likely open the way to further gains for euro bulls.

Look Out for Medical Credit Cards

A scary number of Americans lack health insurance or are underinsured. Medical bills are the single most common factor in bankruptcies. If you find yourself faced with an pricey procedure at the dentist, a specialist, or even at the vet for your favorite furry or feathered friend, the staff may point you toward medical credit accounts. These are easy to get credit specifically for medical and veterinary costs. They can seem like a tempting option, but, there are a lot of reasons to beware:

Many Patients Mistakenly Believe They're Signing Up for an In-House Payment Plan

Some practitioners do offer payment plans in-house. Often, these will not include interest and will allow the patient to pay the cost off over a period of a few months. Carefully read before filling out forms so that you know what it is you are agreeing to.

Where Does Your Paycheck Go?

Creating a family budget is an important step in securing your financial freedom. A budget won't free you from your responsibility in paying your bills on time, but it will steer you in the right direction of knowing where your money is spent each month. It will also get you on the path to effectively start saving money on a month-to-month basis too.

Before trying to establish your budget, you need to start with the basics and understand what you are currently spending your money on. How much do you spend on groceries each month; gas for the cars; heating, electric and water; cable and internet? How much are you spending each month for going out to dinner or going out to lunch; extra-curricular activities for the kids?

Low Interest Rates Have Negative Impact in Credit Growth

The decision of the Reserve Bank of Australia (RBA) to lower interest rates resulted to a failure for possible credit growth in the country since households are racing to finish off their debts rather than adjust their monthly payments, Australian Banking and Finance reported.
When the decision was made, RBA expected that demand for credit will be stimulated. What happened was the opposite since households were more conservative after the global financial crisis.

Steps You Should Take in Debt Management

Due to the fact that they really feel that they can well manage on their own, a number of people usually tend to neglect the great debt administration insight professionals can provide. These individuals are those that have the propensity to make inadequate decisions that could in fact aggravate their monetary issues.

Debt administration is merely the ways lowering your debt through handling your possessions and working out matters with financial institutions. It includes financial obligation management strategies wherein you pay set funds each month to specified accounts. The money is then used by the financial obligation management company to settle your bills.

How Students and New Grads Can Benefit From Credit Counselling Services

Regardless of what your major is in college, one of the things that very few curriculums prepare you for is how to deal with the various debts you may accumulate from credit cards, student loans, vehicles, and other lines of credit. Many students would not even be able to go to college without taking student loans out, but the cost adds up fast. If you are not careful, this debt, coupled with any others you accumulate could leave you in a situation where your bills are higher than your income. Avoiding this kind of nightmare scenario is exactly why credit counselling services are so important.

You are never too young to look into credit counselling services and it makes far more sense to take advantage of them before your bills overwhelm you. Remember that in addition to the actual debt amounts you accumulate, there will always be interest on top of it that continues to grow each and every month. It is not uncommon for students or recent grads who are not debt savvy or who do not take advantage of credit counselling services to wind up paying twice or even three times the amount of what their original debt was worth. Worse yet, this process could take years or even decades to complete, leaving you with a high monthly payment that makes it difficult to make your other bills while keeping your head above water.

Answers to Questions About Unsecured Loans

Many of us have too many expenses and too little income. We turn on the news and we hear the economy is recovering but when we check our bank balance we just do not see it. If only we had an extra $20,000 we could meet our most pressing obligations. Once we could refinance our homes or take out home equity loans to help. But the housing bubble burst and we no longer have such options. The risk of not only missing the loan repayment but being homeless is just not appealing. Unsecured loans seem a better choice. But you have so many questions. The following may answer some of those questions.

Is it difficult to get an Unsecured Loan?

Many people believe that unsecured loans are hard to get. If you have good credit then there are many private lenders who will accept your loan application and give you up to $20,000 in an unsecured loan.

What Are Working Capital Loans and Why Are They Important?

Introduction

Working capital loans are short-term loans that are used to finance daily business operations. While these loans are not intended for acquisition of long-term assets or investments, they can ease the handling of day-to-day expenses. Routine operational costs of a business may vary across businesses but in general, they are categorized into fixed and variable costs.

Fixed costs include expenses such as rent or employee wages while utilities (electricity, water, production costs etc) are covered under variable costs. As you increase awareness about your product or service, you also require working capital for advertising and marketing campaigns. You may also use them towards inventory purchase.

Financial Freedom Can Be Obtained Through an Unsecured Personal Loan

The Great Recession has battered all of us financially. The days when you could get a loan for anything and for any amount are gone. No money down and rapidly rising property values have left the building. Perhaps you are one of the many people who are still reeling from the collapse of the economy. You are not alone if you have seen your credit score drop along with property values. What can you do if you encounter a large medical bill or find that your credit card debt has grown too large to pay off? Even with bad credit, you should consider applying for a large unsecured loan.

Relieving Financial Stress Through Consolidation

Do not assume that bad credit will prevent you from getting a loan other than a high-cost cash advance. A cash advance loan is perfect if you need money between paychecks but if you do not pay it back immediately, you will find yourself deeper in debt. Plus this type of loan cannot help you with the large bills.

Unsecured loans are a perfect option for the large financial needs. They do not require collateral since they are unsecured. You are not putting any of your personal property on the line as part of the loan. The maximum cash advance loan is about $1,500. An unsecured personal loan can be for much larger amounts.

What's the Difference Between Secured and Unsecured Loans?

Being a consumer, you will have to confront with many choices when attempting to determine which kind of loan to go after. Among many options, selecting a secured or unsecured business loan is vital. So, what's the main difference between these two loan types?

Secured/Guaranteed Company Loan 

A guaranteed or secured business loan is one where the loan provider 'secures' their interest by needing you to definitely offer some kind of collateral or personal guarantee (inventory, equipment, etc.) that may be held in case of default on repayment. If a borrower is unable to satisfy his or her obligations regarding repaying the borrowed funds, the loan provider can seize the pledged collateral then sell it to be able to recover anything owed or amounts outstanding.

Here Are The Common Factors That Causes Loan Rejection!

The loan applications of various people are rejected and they get frustrated because of the rejection of their application. There might be several causes why your application has been denied by the loan provider. Some of the major factors behind the denial of the loan applications are mentioned here below:-

1. Your credit rating is not satisfactory for the approval:

A person with perfect credit scores faces no problem to get approved for the loan because good credit score reflects the stable financial condition of the person and reflects that the borrower repay the amount at the fixed time. Borrowers with bad credit ratings are rejected by most of the loan providers because they are risky borrowers and providers or lenders are not hopeful of getting back the loan amount they lend to bad credit applicants.

Understanding Fundamental Analysis

Fundamental analysis looks at the underlying reasons why a market may have moved in a particular direction, instead of analyzing trading patterns as with technical analysis. If you prefer to perform fundamental analysis, this means that you will be following the latest forex news and major global events, in order to better determine which direction a particular currency will travel in and more accurately execute a trade.

Five Things You Need To Know to Start Successful Forex Trading

The Foreign Exchange markets or Forex markets as they are known will probably seem a daunting place when you first come across them. Even those who have experience in other forms of investment can often come unstuck when starting trading on these markets. Therefore prior to tackling the currency markets there are some specific things that you will need to learn before you start trading.

Here are the answers to the five most common questions that beginners need answered if they are to lay the foundations for successful Forex trading.

What You Need To Start Trading 

The good news is that there is nothing in particular that you will need in order to get started. Provided you have access to a computer with an Internet connection you will have the minimum requirements for trading.

This will allow you to visit a broker and open up and account which will allow you to open and close orders on the currency markets.

Forex Analysis for the Coming Week

AUD/USD 

What a down turn we had last week, a nice sizable trend that people were able to get their teeth into. The price has even dipped below the breakout point of the double bottom pattern that was witnessed between August and September. The coming week would suggest a bearish biased heading towards 0.9000 and September lows of 0.8900. However I would expect some retracement on the long candles that were experienced at the end of the week. I would expect to see a pull back to a strong support and resistance level of 0.9280 before heading south again.

EUR/USD

The Euro has been reacting strongly to fundamentals with Mario Draghi giving some insight to the future of the ECB. The price has acted as if strong support levels were not even there and big swings in the market have made it difficult to pin point any entry prices. As it stands at time of writing 1.3557 I would expect to see a return to 1.3480 before continuing on a bullish trend. It doesn't seem to matter what Draghi says the currency keeps bounding back.

3 Irrational Trading Expectations

It is true that the expectations we have for ourselves play a central role in affecting our emotions and even our actual experience. In particular, waiting for a good result makes us feel excited while foreseeing a negative result makes us worry.

Experts in trading psychology have highlighted the connection of having reasonable expectations and ending up with a healthy trading mindset. After all, when one sets expectations that are too high, disappointment becomes more likely. On the other hand, when one sets very low expectations, there isn't enough challenge to do better.

One of the irrational expectations in trading is thinking that hard work means more trades. This kind of expectation doesn't at all take the quality of the trades itself into account. As a result, you might wind up overtrading if you think that the sheer number of trades will eventually translate to profits.

Steps to Becoming a Professional Forex Broker

What It Takes To Be a Successful Forex Trader

Not all trading systems have it, and it is important to find the right forex trading system before you begin to trade. Statistics show, over 90 percent of forex traders fail and even with the best course, with all aspects covered you can still fail.

It is important when you check out a company, to read everything on the company. What others had to say and everything I could get my hands on before I signed up for a training program. Yes, I am a trader, and happy to be a successful trader. This isn't to say there haven't been ups and downs, there have; but I thank my success to a will to learn and succeed in training, which has been dynamic.

So, with that said, before you start, get to know yourself, and definitely get to know the company and program you sign up with. Forex trading is not easy; it is intense, and without knowing the market and all indicators, it is complicated. You need self-discipline and focus and a dedication to learning.

How To Avoid Rejection of Your Personal Loan Application

This article particularly deals with looking into the various issues surrounding the rejection of a personal loan application. Once the application has been logged in, there are several background processes that occur based on which the loan application is approved or rejected.

1) CIBIL Score

Your cibil or credit score should be a minimum of 750 in order to be considered for approval. This is the reason why every individual must purchase a credit information report prior to their application, because if your loan is rejected once, it might take a while before you will be able to apply for a loan again (i.e. after a minimum of 6 months)

2) Documents mismatch / document fabrication

How to Pay Your Mortgage Off Faster

Many of us want to be untied to our mortgage. It is likely the most expensive bill you pay every month. Although the interest you pay on your mortgage is tax deductible, all that interest would be better off put away in an investment account. Even at a low interest rate, you could still end up paying hundreds of thousands of dollars over the term of your loan.

So how can one go about paying off a mortgage faster? It's all about the term, which is how long the mortgage contract lasts. The term you choose - 1, 3, 5 or 7 years or some other period - dictates the amount of interest you'll pay. Whether you choose a fixed rate or a variable rate will also affect your interest payments.

The most common term is the five-year fixed, chosen by more than 50 percent of borrowers. Even though this term is the most popular, it's not necessarily the right choice for every home buyer. The right term for you may not be the one with the lowest rate. Some terms may lock you in at a higher rate for many years, while others may subject you to fluctuating rates. Discover the other options available, as well as their benefits and disadvantages.

How to Get Rid of Mortgage Arrears

Acceptance is Important

If you're being plagued by mortgage arrears, don't think that it's the end of the world. A lot of people are plagued with the same problem. You resolve mortgage arrears not by drinking yourself to death or wallowing in depression, but being pro-active and exhausting all options to arrive at a satisfactory solution. You'll have to be aware of how you arrived at your sorry state in the first place. Did you max out your credit cards? Were you unable to pay your car, house, or business loan for the past few months? Determining the root cause of your mortgage arrears is instrumental in solving your problem and obtaining mortgage arrears help. If your problem lies in your credit card bills, you can request for a payment date extension from your credit card company. If you're dealing with a bank loan, you can request the bank for lower payment rates or delay payment in exchange for higher interest rates.

Make Your Business Look Great by Using Free Invoice Templates

Every business owner knows that invoicing customers for services and goods is a necessary step. However, preparing invoices over and over again might become boring. Therefore, the help of an invoice template sounds terrific.

Appearance

A good invoicing project will make you look more professional, but at the same time it will let you schedule your invoices faster and easier. Moreover, every invoice is personalized. This means that all invoices follow the same format or layout and transform tax processing or bookkeeping into a simple task.

Standard templates

Standard templates include basic elements that are necessary in order to create comprehensive invoices. In addition to this, the templates are made in a way that allows you to include the logo, address, business name and various other contact information into their format. Having the details mentioned above, the clients have it easier to understand that the invoices come from your business. Further on, the clients can send out payments, manage administrative tasks and many other things. The standard invoices will be of great assistance in the administrative duties.
Keep in mind that professionalism and efficiency are the basic tools to create an outstanding job. The main advantage when it comes to a template of this type is the possibility to expedite the general process of invoicing without ruining the quality and professionalism of the job. This is why a template of this type will do wonders for your business.

Renewing Your Mortgage? It Pays To Shop Around

If your mortgage is coming up for renewal, you should shop around for the best deal, reports Rob McLister from Canadian Mortgage Trends. Most borrowers don't.

In fact a survey by Martiz/CAAMP revealed that only 56 per cent of borrowers negotiated their rates when they came to renew. So almost half of all Canadian mortgage borrowers are not getting the best deal because they don't comparison shop!

Lenders make money when you renew your mortgage with them. If you renew with the same lender, they don't have to compensate anyone for referring you. And if you don't negotiate, you won't be offered the best deal.

You expect to negotiate if you're choosing a new lender. But you should negotiate even if you're staying with the same lender. As the Bank of Canada discovered, you could be paying almost double the rate markups than savvy comparison shoppers pay.

But bank customers are often loyal. The Maritz/CAAMP survey found that 4 in 10 mortgage renewers accepted the first rate their bank offered. They trusted their lenders to give them the best rate at renewal time. This trust is misplaced.

Reposition Your Income And Growth Investments To Minimize Taxation

The before-tax contributions allowed for government-regulated retirement plans (such as 401(k)s and IRAs) entice many people to invest and grow a large fraction of their retirement savings within those plans. But money you eventually withdraw from them is taxed at ordinary income rates - a potentially high rate. And their required minimum distributions (RMDs) begin after you turn 701/2. How can you minimize taxation of your savings in retirement?

Generally people have two categories of accounts that hold their savings: (regular) taxable accounts (like bank and brokerage accounts) and government-regulated retirement accounts (like their IRA). The taxation of investments in each of these is fundamentally different.

All investment earnings and gains within deductible IRA-type accounts grow tax-deferred. But everything - earnings, capital gains and principal (contributions) - is taxed at ordinary income tax rates when you withdraw from them.

On the other for taxable accounts, principal (i.e. the amount you contributed or purchased to that investment) is their tax basis since you got no deduction for it: it's never taxed. But annual earnings such as dividends or interest are taxed annually. Any growth in value (capital) is taxed only on its increase, but only when it's sold, and, then, at the low capital gains tax rates if held over 1 year.

Annually Revise Your Savings Withdrawal Rate To Maintain Your Asset Value

Perhaps you rely on your savings to supplement your Social Security and Pension incomes. If so, make sure you revise how much you withdraw each year to make your savings last.

Ideally what you take out of your savings should increase with inflation each year so the purchasing power of your withdrawals remains constant to maintain your living style. But of course you don't want your remaining savings to shrink to support those withdrawals. So you must plan for what you can withdraw annually to also preserve your portfolio against loss in its value.

As a retiree, you ought to have at least 50% of your saving portfolio in high quality income generating investments. The remaining 50% should be in high grade equity investments. You need those equity investments to help grow your portfolio and offset inflation's diminishment of its overall value.

A tentative 4% withdrawal rate Considering the average performance of markets, many advisors recommend using a maximum of 4% as a withdrawal rate from your savings. That statistically allows for preserving the portfolio's real value and the real value of your withdrawal's purchasing power. So, the quantity of money you withdraw each year increases with the inflation rate.

Traveling Abroad - Here Are Some Tips To Make Your Money Go Farther

One of the nice things about retirement is that you have the time to travel to those places you've dreamt of. And, hopefully, you've the money to get you there and back. Nevertheless, here are some tips to help make those travel dollars go farther.

-Off-season savings:

Not having to stick to your kids' vacation schedule, you can travel anytime. So you can avoid traveling during the expensive 'tourist' season. Airlines, hotels, and resorts base their prices on demand. Choose to travel 'off season' and save money.

-Airline ticket savings:

* Make your travel arrangements well in advance. Checkout the discount websites (Google 'cheap flights') for good deals. They often combine flight segments from different airlines for even lower costs.

* Always check out the round trip option to any flight you make - even if you don't intend to return using it; round trip tickets are often cheaper than the one-way ticket.

* Using connecting flights - rather than direct flights- can help you save money. Forget about the inconvenience. Remember, you're not in a rush. Make it work for you.

Prepare Children for a Bright Future by Teaching About Money

Being a parent requires you to teach your kids to be responsible. One thing that is often overlooked is teaching kids about money. Many parents make their finances into a secret thing rather than involving the whole family in the conversation. This can lead to a generation of children who have no clue what it means to have and use money wisely. Instead of avoiding money conversations with children, it's important for parents to make sure their kids understand money and the way credit works. Parents should even talk to kids about how to monitor credit scores so that they can track their own financial health in the future.

Introduce Money Early

In order to teach kids about money, you need to get money into their hands. Money should not be looked at as an abstract concept. Rather, parents should be sure to show kids exactly how to use it. This includes giving them an allowance, having them pay for some of their own needs, and showing them how to save. It's essential to set up a savings account for a child as soon as feasibly possible. Make a habit out of going to the bank and depositing money. Sit down with your kids and discuss how much money they have and what they plan to do with it. This practice shows them that money is a powerful thing and that you trust them to make their own decisions with it.

Teaching kids about money is a long process that needs to be a full experience. Don't just hand them some money and tell them to go shop. Model the idea of shopping by taking them with you. Simply by taking a child grocery shopping, you are teaching about adult life and what it means to be responsible with money. You should also teach kids about credit at an early age. Since credit cards and debt are such big factors in the financial lives of most people, the sooner someone is exposed, the better they should be able to handle it in the future.

Large Mortgages Do Not Always Require A Large Income

Until the present economic downturn it was not particularly difficult to arrange a very large mortgage in comparison to your income. But we all know where that situation led us and many people are still suffering in the UK, Europe and the US from the lax lending rules that most banks and lending institutions were applying. The effect of this laxity is still being felt and is likely to be felt for some time to come.

Many young professional people who would have been able to secure a good mortgage deal pre-recession are struggling to save enough deposit to buy their first property and this lack of activity at the bottom end of the market is having an effect on the whole market (perhaps with the exception of the prime London residential property market which is being supported by overseas investors looking for a safe haven for their assets as well as a chance to sample the cultural highlights of the capital). This lack of activity on the first-time buyer front has meant that many are stuck renting properties that, ironically, they could probably afford to buy and for which the mortgage payments would be lower than their rent.

New Mortgage Lenders for Top End Property Market

It has been frequently discussed in the news and other media about how the London property market is bucking the property price trend in the UK. There are a range of reasons why this should be so: the property market in the capital is seen as a stable place for investment, the value of the pound is weak and there is a limited supply of available and desirable property. Whatever the reasons for the boost in the high value residential property market in London, what is clear is that foreign buyers continue to buy.

In the wake of this surge of international buyers it is not surprising that there is also a new style of mortgage lender coming on the scene. Even the traditional high-street lenders are gradually reducing their interest rates and increasing their limits on maximum loan size in order to attract both wealthy UK buyers and also the overseas buyers.

As property prices are showing greater stability right across the country and buyers are contributing larger deposits many of these lenders are again viewing mortgages as a good bet for the first time since the start of the global economic crisis.

For those seeking large mortgages that still exceed the typical maximum loan amount of the traditional lenders i.e. those in excess of a million pounds, UK buyers can benefit from the significant number of UK-based private banks. Some of these, such as Handelsbanken and Barclays Wealth are dominating the market for large mortgages for high net worth individuals. Lenders such as these allow non-resident and non-domicile individuals to borrow a mortgage. They will take the borrower's full financial circumstances into account when deciding at what level to agree the mortgage lending. They will take a wider view of the solutions available to repay the loan such as using offshore income, background assets and limited companies. They also commonly consider high loan to value amounts with an annual repayment where this suits an individual's financial situation.

The Importance of Proper Mortgage Advice

With the UK property market continuing to show little sign of any major recovery in the near future (perhaps with the exception of the prime London property sector) it is more important than ever that any investment you make in the residential property market is a sound one; backed up by good advice. Long gone are the heady days when you could buy just about any type of property in any area of the UK and make a profit within a few years simply due to rising house prices. For those who refurbished a property the returns were even greater and in an even shorter space of time but reality has now hit home.

Or, at least, it should have. Worryingly though there are still substantial numbers of borrowers taking out bridging loans in order to secure the house they want to buy but before they have completed the sale of their old home, or even secured a buyer. In an uncertain market like the one we are currently in people should be very cautious about any sort of loan they take out but particularly one such as a bridging loan where the costs of borrowing can soon spiral out of control.

It is important that buyers view any house purchase with a long term view and do not assume that it is easy to secure a buyer for any home. Even a highly desirable home in a good location still needs to find the one buyer who is actually ready to buy and can secure the appropriate level of borrowing. Large numbers of house sales are falling through because lending criteria or personal circumstances change between an offer being accepted and a sale being completed. A reassurance that a buyer will complete is not a completed sale and only when contracts are signed can you have some certainty of the sale being finalised (although even then it is not unheard of for the transaction to fall through).

High Value London Property Market Dominated By Overseas Buyers?

Anyone working in or associated with the high value property market in and around London will know that the capital's top end residential market has seen growth (where other areas of the UK property market have not) due to an influx of overseas buyers looking for a solid investment. A report published last year by Savills, the global real estate services provider, revealed just how much this select market has been dominated by foreign investors.

The report and analysis revealed that international buyers comprised 63 per cent of residential property purchases in the prime new-build market in London and the Home Counties. This is in stark contrast to the situation in 2009 when 75 per cent of purchases in this same sector were by native UK buyers. And when it comes to properties valued in excess of 5 million pounds international buyers make up an even larger majority at 88 per cent.

It is perhaps not surprising that this change has occurred in recent years given both the economic downturn in the UK (and the rest of Europe, of course) and also that London has always been a cosmopolitan city that has been attractive to overseas buyers for a wide range of reasons, not least being the cultural highlights the city offers.

Vehicle Accident Checklist

No matter how careful a driver you are, chances are you will at some point find yourself involved in a road accident. For any accident situation the best thing you can do is be well informed, and well insured. Below are some key factors to keep in mind if you ever find yourself involved in a vehicle accident:

1: Assess the damage

Assessing damage, includes assessing damage to yourself and any passengers, not just your vehicle. You and your passenger's health should be your number one priority. If it appears that emergency treatment is required or you have any major concerns, then make sure to call for an ambulance. Do not take any risks with regards to you or your passenger's health. Remember to that not all damage may be visible, such as in the case of head trauma. If in any doubt, call for an ambulance. It is better to be safe than sorry. Next, check on your vehicle to see what damage has been caused. Then, contact the police. They will fill out a police report on the accident, which is an important requirement for your insurance claim.

2: Check for any witnesses

Take a look around for any bystanders who may have witnessed the accident take place, and request their contact details. Their testimony of the event will aid your insurance claim. Witnesses to the accident will prove particularly important if there is any insurance claim dispute. They can then be contacted for their version of the event.

Relocating To a New Business Premise: A Checklist

Making sure you are prepared and organized well in advanced of relocating to a new business premise, is key to making a smooth transition. Following this simple checklist can help ensure the move will be as efficient and fast as possible, helping you to have a much less stressful moving period.
Approximately 4 to 6 months in advance
This is the time to begin working out your moving budget. If your budget allows, consider taking on a move coordinator, and they will take over the move details for you. A move coordinator can be invaluable and will help reduce stress associated with the move. If a move coordinator cannot be factored into your budget, then now is the time to start seeking out a commercial moving company. Take time to research for a reliable company with a good feedback record. Next, if you own the premises you are leaving, contact an estate agent to arrange the rent or sale of your premises. As for your business contact numbers, fax numbers and internet, begin to set these up in advance for the new site you are relocating to. Work out what your new premise layout will be, and inform your move coordinator or moving company. Sort out any business permits you may require, and work out what business insurance cover you will need, such as professional liability insurance and income protection insurance. Take time to add any of your own itemized lists to this set of tasks.
Approximately 2 to 4 months in advance
Make sure that you have your moving coordinator and/or moving company booked by this stage. Begin arranging for a professional cleaning service company to clean your old (and new premises if required), and set a date for cleaning with them. Order your new business cards and labels, and any other stationary required for your new address. Arrange a connection date for your phone, internet, electricity and other services required. Make a list of any important items required for your new premises and begin to purchase.

Reducing Accidents in the Workplace: 5 Top Tips

Most businesses, whether big or small, will experience an accident within the workplace. You may not be able to eradicate all chances of an accident, but you can be diligent in reducing the risk. Below are 5 top tips to have in place which will help reduce the impact of an accident within your workplace.
1: Safety procedures
Ensure you have safety procedures in place and that your staff are well aware of them. This should include a company handbook which lists the steps that must take place in order to prevent accidents in the work place, as well as what to do in the event an accident does happen. Ensure that your staff has opportunities to be trained in first aid procedures. Regularly bring up health and safety procedures within staff meetings and have staff carry out risk assessments.
2: Inspect your premises
Make sure that you carry out a regular inspection of your premises to ensure that it meets health and safety regulations, and check that your staff are working with health and safety measures in mind. If you see any area or action that is a cause for concern, then discuss with the employee responsible to make sure they are aware of the problem and how to proceed. Then arrange a staff meeting in order to reiterate the importance of working within stipulated health and safety regulations.

Procter and Gamble's Acquisition of Gillette Analysis

P&G's businesses were organized into three product based segments: household care, health, baby and family care, and beauty care. P&G became a national consumer products company with 30 brands and production facilities across the US and Canada by 1890. P&G also experienced an increase of more than 40% in their revenues between 2001 and 2005. In 2005, P&G executed its largest acquisition with the takeover of Gillette Company.
I. Reasons for P&G's Acquisition of Gillette
A) Companies have complementary strengths in product innovation and selling activities
P&G has a distribution system that is internationally spread out as compared to Gillette. Management is expected to take Gillette products into developing markets such as China that were served by P&G, but not Gillette immediately after the merger. P&G and Gillette also plan to share their R&D costs to further develop their products to better suit their customer's needs.
B) Stronger lineup of brands
Gillette was a well-known brand in the razor market and it also has a 70% market share in the global razor market. It has a strong competitive position and Gillette has been successful in persuading their customers to trade up to higher-price-point personal care items. Gillette's customers also tended to be highly loyal. Acquisition of Gillette will definitely provide a competitive edge to P&G as Gillette is will provide a stronger lineup of brands to P&G in the consumer products industry.
C) Generate additional opportunities for economies of scale
Gillette has a huge market share on its own while P&G has an internationally spread out distribution system. Combining these companies' strengths together will enable both P&G and Gillette to reduce per unit cost by achieving economies of scale.
D) Enhance relationships and bargaining power with retail buyers
The strong competitive position that Gillette has in the consumer products industry will increase the bargaining power that P&G has over its retail buyers. P&G will be able to strengthen their market position through this acquisition. A stronger brand portfolio would also definitely help enhance relationships.

Making Prepayments

Households are prepaying their mortgages more quickly than when the interest rates were higher, another report in The Australian noted. Apparently, only about half of Australian households lowered down their mortgage payments when the interest changes happened.
It means that a considerable portion is making prepayments to end their debts early. Mr. Thurner and Dwyer, working at RBA's domestic markets department, found out different results from the two sets of data they gathered.

Why Do You Need an Auditing Company, Cost Reduction Consultants and Overhead Cost Decrement?

An organization's financial basis is strengthened on inclusion of expert auditing services in the marketing plans. Though it is obvious for clients to doubt the credibility of existing audit firms, some key points can be examined to find the apt auditing company for your business requisites. The characteristic feature of a professional audit firm is supervised analysis of the following records of an organization:
1. Financial data.
2. Bank statements.
3. Statistical information of the organization's accounts.
4. Surplus sources of financial information.
The scrutiny of these documents creates probabilities of superior financial management. The financial proceedings of the organization must be in accordance with existing bank laws and legal regulations. The auditing procedure of a business firm is considered at par with yearly health checkup of people in terms of necessity.
Efficient audit services are found in company audit services. Skilled auditors of these companies ensure proper incorporation of apt accounting principles to validate the economic statistics of the organization. They ensure precision in the enterprise's financial data and legal certainty of company procedures. A profitable organization is liable to quite a few individuals such as revenue officials and the firm's shareholders. The latter must be imparted appropriate statistical documents and declarations regarding the financial actions of the organization.
A cost reduction company emphasizes on reasonable reductions in various costs accompanying your business. Reduction in costs at the primary stages can earn considerable revenue in the later phases of your business. Investments are directed towards fruitful sectors of the business. Reaping maximum incentives from minimal investments is a major utilization of cost reduction. Many enticing prospects of investing in latent sources of profit are eliminated. The budget of a company plays the pivotal role in the profitability of the same. More the planning of your budget more are the probabilities of your enterprise's viability. Business firm owners would never risk capital investments on reprehensible aspects of their business. Cost reduction consultants are trained effectively to achieve desired results at such instances. Their job is to provide your organization with the benefits of cost reduction. Escalation of the organization's income after implication of cost diminution methods is evident. However, a prominent side benefit of cost reduction is elevated cash influx. Minimizing all costs corresponding to the firm's business dealings brings in considerable capital.
At the least, overhead costs keep adding to the financial ailments of entrepreneurs. Expenses on factors which are essential for the organization yet contributing zero profits to it are major concern for every cost reduction analyst. Nobody would ever invest in something which does not yield anticipated outcome. Superfluous outflow of capital investments on trivial aspects like wages and electricity diminish probabilities of maximized profits in the future endeavors of the organization. The solution to this affliction of business firm owners is handled by cost reduction professionals who reduce overhead costs. Decline in overhead expenditures encourages entrepreneurs and business owners to infer convenient financial plans and capital management systems. Opting for ace audit professionals and cost reduction experts can levitate your business to cloud nine.

How to Make Money, With Your Money!

I am sure, like me, you keep hearing about how bad the economy is at the moment, and how poor interest rates are on savings, but how high they are on debt. Banks do not seem the safe money-keeping houses they used to be, so people are looking for better things to do with their money, and I don't blame them! Most working adults by the time they are 30 will have either just started saving, or have a substantial amount saved for a rainy day. This money at the moment seems to just be sitting there, yes it may be safe, but it is not getting bigger! I have been exploring ways to get my money working for me, and here are some of the best and most simple options I have found.
Investing money you already have is a bit of a gamble (but not gambling, I am assured), stocks and shares fluctuate depending on the market so it is not easy to predict. There is not a set limit to the amount you can start investing with, £5 a week will gradually show you a return. You can invest in stocks, where you are buying a share of the company, so you also get a share of their profits (dividends). The value of these fluctuates and does not guarantee you any return, but can potentially offer the highest out of any investment, so it is whether you want to take the risk. Or, if this is too speculative for you, bonds are the traditional alternative. There are different types (treasury, agency, corporate, depending on the institution you are buying them from) and they give you a fixed amount of interest on a fixed date. Here you are lending money to that institution, and they give you interest on that amount and eventually pay you back in full. This sounds quite scary so I have left it well alone, but as the results can be so rewarding, you may take your chances!

Is It Easy to Make Money and Become Rich?

If you listen to the so-called gurus who are trying to sell their money-making products, it sounds extremely easy and quick to make loads of money and become filthy rich. Whether they are selling their software to earn money online using the internet or pushing newsletter subscriptions to advise people on which stocks to buy, they make it sound unbelievably simple with super fast results being likely. All you need to do is buy their products and follow their advice.

Needing money is common for most people. Although honest work with a regular job is the way for most to try to achieve their goals, it is not unusual to want to try something which promises fast returns.

Whether you are looking for a home based business which will help take the edge off the tight financial picture you are facing or you want to become wealthy beyond your wildest imagination, there seems to be a myriad of ways available to you. Whether they work or not is a different matter.

Jerry was investigating ways to earn money online so he signed up for several free offers which held big promises of wealth. All he had to do was purchase this incredibly easy to use software which would bring sales rushing to his website. 

Watching Out For Your Own Welfare

This is an incredible world full of remarkable people who have achieved great things. It is also a world which contains a lot of dishonest people and criminals who would do anything to make life miserable for their fellowmen.

Although the hope would be to engage with people who have integrity who want to do honest work and provide for themselves, there are many who would cheat, lie, and steal to get what they want. In that category of people fall those who resort to stealing another person's identity and money.

Needing money is not unusual, and most people will try to earn money honestly such as with regular employment or possibly a home based business (online work or network marketing also known as MLM or multi-level marketing) or find an extra part time job. There are many ways to earn extra money. Some people, however, are regularly committing dishonest acts against others. They are willing to try to improve their own station in life by doing criminal acts instead of working honestly to earn money.

Yet there are those who have mastered the techniques used by the perpetrators of these crimes. They do not seem to often be caught so they keep going. If they would be pursued more aggressively by the companies which may be losing money due to the fraud and law enforcement personnel who become aware of the crimes, these dishonest individuals might be deterred or caught and incarcerated.

When to Turn to a Credit Reporting Agency to Find Someone

When you own a business and you have given someone credit to make purchases, you put your trust into them hoping that this decision will turn out to be a good choice and investment. When someone stops paying you want he or she owes to you and seemingly disappears, this is more than a disappointment. You are losing money and need to regain what is owed to you as quickly and legally as you can. What can you do?
This is most likely the time to turn to a credit reporting agency that offers certain methods of finding people and notifying them of what they owe to your business. Many of these companies are able to track down individuals and possessions in order to notify them of your intent to collect on a debt or for legal repossession purposes. They know just how to flush certain people out to get them out in the open and out of hiding.
People who do not want to pay back money they owe are notoriously difficult to find. They may start using untraceable cell phones. This makes it nearly impossible to reach the person, because you may be told that you are calling the wrong number, no one may answer at all, or the number may suddenly be no longer in use.

Essentiality of a Professional Auditing Company in Expense and Overhead Cost Reduction

Finance is the spinal element of every organization. Without adequate financial stronghold, organizations are likely to miss out on opportunities of huge commercial accomplishments. Business owners prefer to keep a tab on their financial records. They have to deduce efficient and working conclusions from observation of statistical data of the organization's financial facet. However, it is not their burden to bear. The necessity of a professional auditing company arises here. They scrutinize the genuineness of the financial statistics of an organization. Auditing personnel verify the transparency in quite a few transactions of the firm. The procedures implied by auditors are to ensure accuracy of financial statements without traces of deception.

Auditing services are applicable in diverse sectors. Modes of operation of auditors are varied depending on the requisites of clients. Internal auditors work as job holders in a particular organization. They work on demands by higher authority in the firm. External auditing involves non employees. The candor of the enterprise's financial scripts is validated and a report is prepared in external auditing. Vivid depiction of auditing data of an organization facilitates prospects of effective cost reduction. Cost cutting is mandatory in the present times of critical economic crisis. Business executives are facing the utmost need to diminish their expenses. Investing capital in the appropriate sectors is not a cakewalk for business personnel. Expensive investments capable of profits in the future and unproductive investments without any returns are the prime factors of concern for business executives.

Expense Reduction Services and the Role of Cost Management Consultants

Organizations of the modern age are in grave need of reduction in their expenses. This process is vital for non stagnation of the enterprise. Consistent profits would do no good to the owners. Thus amendments in the financial domain of the organization are compulsory. Reducing the expenditure on primary investments lightens the pressure on cash flow through the organization's framework. Leaving out Cost Reduction service from the business strategies can result in a state of developed inertia in the firm. In this condition the profits as well as progress are hindered. The organization may face acute deficiency of resources in the later years of their business schedule.

Thriving organizations in the global market endorse the employment of long term as well as short term decrements in expenditure. Credibility and profitability of an enterprise rely solely on effective and proper costs reduction techniques. It is a pretty tough task to manage and differentiate investments in various sectors of the organization. However, professionals implement the following procedures to ensure feasibility of the financial operations and augmented profitability of the firm.

1. Interaction with several clients empowers the expense managers to craft fresh experiments for the organization's betterment.

2. Categorizing the sectors of investment allows cost decrement personnel to be specific regarding investment pathways.

3. Analyzing the present operating conditions of the organization and instant cost saving processes to avail quick cash.

4. Synchronizing with both ends i.e. the suppliers and the customers. Vivid detail of raw materials obtained from suppliers and valid purchase processes of consumers are maintained by proficient expense reduction consultants.

Leveraging Your Stuff - Where To Sell Everything

Credit repair is a complex process with a lot of moving parts. Part of it is to settle your debts and start building some savings again, a process that many people find frustrating and demoralizing. How can you save money when you're in so much debt already, short of giving up sleep to get another job?

One strategy that works for many people is to take a hard look at all the stuff in their garage, attic, or basement and start selling it. This is a great strategy in many ways: The fact that it's collecting dust somewhere and not being used indicates you don't actually need this stuff, it cleans up your home and organizes your life, and it can lead to some significant extra money that can be used to get you out of debt more quickly or to build up your savings. Here's where you can sell anything you've got clogging up your storage areas.

How to Find the Right Investment Advisor

Money isn't easy to come by and you want to make sure that anything you invest will be there when you need it. Since investing your savings can be complicated and time consuming, most people decide the best course of action is hiring an investment advisor.

What is An Investment Advisor?

When you meet with an investment advisor you are meeting with a person who takes a look at the market, listens to your long term financial goals, and considers the amount of money you can afford to invest. They use all this information and provide you with advice about investments that should help you make the maximum return on your money.

Questions You Need to Ask

When you decide it's in your best interest to use a professional to help you save for your future, you want to make sure you're using the best. Approach the initial meeting with the advisor with the same kind of attitude you would have if you were an employer conducting a job interview. Have a list of questions ready to go.

Be very blunt and ask exactly who will be overseeing your account. There have been stories of people who assumed one person was going to be handling things only to find out much later that the account was actually being handled by several different people. Make it very clear that you want to be able to communicated directly with anyone who has access to your account and is making investment decisions,

Find out how often the investment advisor in charge of your account will take the time to review your current portfolio. This should be something they plan on doing with a great deal of regularity. In addition to checking the portfolio and gauging the status of current investments, they should also get in touch with you each time to discuss any changes that have come up. A good investment firm will be diligent about communication and want to make sure you're up to date on how your investments have performed.

Get Ready for SEPA Direct Debits - Top 5 SEPA Migration Tips

Time is running out for businesses to be SEPA ready in good time for the February 2014 SEPA Migration deadline.

A lack of awareness certainly shouldn't be an excuse. Although the deadline was set in 2012, the SEPA initiative itself was launched more than a decade ago in 2002, with the aim of creating harmonized standards for domestic and cross-border payments in Europe.

Despite the fact that plans were put in place so long ago, there are real concerns that firms are taking too long to prepare for the looming SEPA Migration deadline. And the bad news is that at this late stage, there is virtually no chance of any change to the deadline date. Any EU request to extend the deadline would take at least one year - too late for an extension of the February 2014 date to be considered!

This means that businesses have no alternative - they need to get SEPA ready. Anyone who has not converted their systems by the deadline date will run into significant-cant problems.

To help you avoid this situation and get ready for SEPA Direct Debits, here are 'Top 5 SEPA Migration Tips' to consider:

Tips for Investment Services and Financial Services

Before you make a decision to engage in investment services and financial services, you need sound advice to ensure that you reap from your efforts. You could be planning to invest in bonds, stocks or mutual funds. You may also be thinking of partaking in the many financial services that are available such as opening an IRA or buying an annuity. As well, you may be weighing the option of obtaining credit from your bank and repaying it using monthly instalments from your salary. The list of options is endless, but in all these investment options, there is some form of risk involved. Before you settle on any of the different forms of investment services that are available, there are a number of tips that you need to follow:

• Defining your goals: You should ask yourself why you want to invest your money. The point could be that you want to save money to buy a house or to secure your retirement. As well, you could be aiming to save for your child's education, or just to protect yourself in case the unexpected happens - such as losing your job.

• Evaluate how quickly you can recoup your investment: Investment services such as bonds, stocks and shares can be sold any time. However, there is no guarantee that you will get back all the resources you invested in them. On the other hand, investments such as limited partnerships in most cases limit your ability to benefit from your holding. Therefore, you should contact your financial services advice provider for the best investment you can make.

• Calculate what you expect to earn from your investment: Investments such as bonds are generally guarantee a fixed return, but earnings on many other securities fluctuate with market changes. Along the same line, it is important to make a critical assessment because one good performance of an investment does not guarantee that the same investment will perform well in future.

Overview of UAE Banking Sector

The UAE banking sector is still in recovery stage, post the 2008-09 real estate crisis in Dubai. However, the financial performance of the banks has stabilised especially over the past couple of years. The UAE banks, particularly Dubai based banks, are facing asset quality challenges, as reflected in their high proportion of non-performing loans and low level of provisions. On the other hand, Abu Dhabi based banks appear relatively less challenged from these issues due to their relatively lower exposure to real estate and higher exposure to oil based industries, which did well amid favourable oil price environment.

The key concerns related to the UAE banks include i) concentration in loans and deposits, ii) high proportion of related party exposures, iii) limited data transparency/availability, and iv) stiff industry competition. Moreover, the performance of the UAE banks has been constrained by the still recovering real estate and construction sectors. Although the banks maintain a strong presence in their local markets, the banking sector has limited diversification and displays concentration in terms of geographies, products, and customers.

That said, most of the UAE based banks benefit from strong ownership structure backed by local governments. In addition, most of these banks are in the process of restructuring their problem loans. The economy of Dubai has shown encouraging growth in the past two years. All key sectors of the economy including real estate, trade, tourism, and services have shown a considerable improvement. The improved performance of the core sectors would result in re-classification of some of non-performing loans as performing loans, which would reduce stress on the banking sector in the medium term.