Our Transparent Fee Structure

Fee Structure Example

Our objective is to provide you with a minimum return of 300% of your ‘out of pocket’ advice fees within 3 years of engaging our services. The following example demonstrates how this works in practice.

A client engages HFS to provide advice. The time incurred in providing the advice is 30 hours and has an associated cost of $6,500. The engagement is over a period of 3 months. The client’s situation is classified as ‘Standard’ (for a description of the different levels of complexity – Click Here).

As part of this engagement, HFS renegotiates a $1M loan facility for which the client benefits by receiving a lower interest rate (-0.2%) on the borrowings. The finance provider pays commissions to HFS of $5,000 once-off (paid 30 days after the renegotiation takes place) and $1,500 per year on-going.

‘Out of Pocket’ Cost over the 3 month period is therefore:

Time Incurred (30 hours): -$6,500
Less Commissions Received ($1M facility): $5,000 (paid to HFS 30 days after loan renegotiation)
‘Out of Pocket’ Cost: $1,500

Key Benefits:

Reduction in Interest Expense (-0.2%): $2,000 (assumes facility is interest only)
Ongoing Commissions: $1,500 per annum (paid to HFS*)
Benefit of HFS advice which will likely generate further savings and advantages for the client.


After 3 years: Year 1 Year 2 Year 3 Total
‘Out of Pocket’ Cost -$1,500 -$1,500
Reduction in Interest Expense $2,000 $2,000 $2,000 $6,000
Net Saving $500 $2,000 $2,000 $4,500


Ongoing Commission Credits $1,250 $1,500 $1,500 $4,250
Remaining Commission Credits* $1,250 $1,500 $1,500 $4,250*

*Recorded against the client’s file to be used to offset future time incurred expense.

Net Return on ‘Out of Pocket’ Advice Fees = ($6,000 + $4,250) / $1,500 = 683%

In this example, the client has more than fully recovered the Cost of Engagement through the commissions received from the loan renegotiation and the reduction in interest expense. The client will continue to save $2,000 per annum ongoing from the reduction in interest rate (assuming the loan is interest only and remains at $1M). This means that after the third year they have achieved a 400% return on their initial out of pocket engagement cost from the reduction in interest expense alone and this does not take into account further savings and benefits generated from the HFS advice process.

In addition, the $1,500 per annum will continue to accumulate against the client’s file (per the terms of the loan renegotiation), with the accumulated amount available to be used to offset the cost of any future advice from HFS. Note that the commissions paid to HFS for the loan renegotiation are non-refundable and can only be used to offset HFS fees and future time incurred expense.


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