Banks Keep Lending Standards Tight

Posted on August 21, 2012 by Winter

Since the recession began, many small business owners that have sought to get a loan or other financing at banks have had to jump through hoops because credit standards and regulations have changed very little. In the Federal Reserve’s most recent survey of bank loan officers, ”95% said credit standards remained basically unchanged during the second quarter.”

Fewer than 5%  of banks reported easing requirements. “Although that number is bankshigher than in the previous two quarters, it still pales in comparison to the share of banks that reported tightening standards during the recession.”

“However, the survey of 61 large domestic banks doesn’t address a greater economic indicator: demand for small business loans.  Community bankers and industry experts say small firms are avoiding debt, because they see little reason to do so. Consumer demand remains weak, said Rohit Arora, CEO of small firm loan marketplace Biz2Credit. What the Federal Reserve survey does reveal, though, is that those who are looking for credit aren’t finding it any easier.”  “One reason cited by community banks is that they are now required to hold on to more funds, restricting their ability to make loans as easily.”

Paul Merski, chief economist of the Independent Community Bankers of America, said banks are wary of loosening standards in what he called “such a restrictive regulatory environment.”

“The higher capital requirements proposed in Basel III, an international agreement that could soon affect the U.S. banking industry, are also having a chilling effect, Merski said. Banks are holding back now to prepare for the higher required reserves.”

“It’s very difficult to raise fresh capital, so you have to start to build up that capital now,” Merski said. “One way you build it up is to hold more back.”

Credit: Jose Pagliery
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Financial Challenges of Owning a Business

Posted on August 11, 2012 by Winter

If you own a business, no matter whether it is small or large you may have already realize that financial and accounting responsibilities are a tremendous challenge.  You may be facing various internal functions involving tracking the cost of both goods and services and perhaps have the responsibility of collecting financial records, recording and reporting the different costs from several departments or divisions.  This is something that can be a burden, especially if you only have a handful of staff to financialperform multiple financial tasks. Methods of cost allocation require information for direct materials, production, labor and overhead and your financial or accounting team is responsible for reviewing the accuracy of this information.

Perhaps you are not so fortunate to have the necessary staff to perform your business financial tasks.  If that is the case, now you can make it easier for yourself by tapping into the vast resources of an online accounting firm that can ease the burden and free you up to hone up other issues that might need your attention.  Remember the management of financial business accounts is not something that is going to go away.  It is a continuous process and must be address constantly.  So why not eliminate the hassle and worry of planning for future financial expenditures and the challenges of reviewing historical data?  Team up with known professionals and allow them to implement their expertise and technology; beat the competition and allow your business to thrive outright.

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Cyber Threats

Posted on August 6, 2012 by Winter

With every passing day, cyber threats are changing and becoming more challenging to each of us that use computers.  Last year, threatening virus and malware rose at a rate higher than it has in the past 20 years.   In the past year, approximately 25 million new virus strains were identified; several of which caused unprecedented damage throughout the cyber world.  The experts are now predicting that over the next few years an alarming number of new threats of malware and new viruses will attack us which will be much more sophisticated and dangerous than they have been in the past.  Cyber-attacks with criminal cyberintent will become common place on social networking sites. Cyber criminals will find better and more sophisticated ways to exploit users’ trust with malware that appears to be coming from friends and family.

The nation’s budget on cyber and informational security is expected to increase approximately nine percent over the next three years.  Expenditures are expected to increase substantially in the areas of internet security, training, and access management, new identify theft techniques and education and awareness.  Yet, security threat will continue to challenge the sophistication and effectiveness of professionals who are responsible for counter mal and spyware.  New malware threats and cybercriminal attacks are now a wakeup call for government, business and consumers.  Moreover, we can probably expect new security regulations to come from Congress that affect the utility and banking industries that are more highly charged and sophisticated.  One thing that is a given, this will be an extremely challenging year for the newly appointed White House cyber-security “czar” Howard Schmidt.

Credit: defensetech.org
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Residential Mailboxes

Posted on July 17, 2012 by Winter

There is a big difference in street side mailboxes or door mail slots as opposed to those in neighborhoods or along country roads that have pedestal mailboxes in front of each home. All of them guarantee the safety and security of mail; protection against harsh weather and tampering as well as the opportunity to pick up and send mail.  However, in my opinion there is something uniquely different about having a mail slot in one’s front door, which I believe is the level of service received.

Just last week, a postal employee who some have assumed had good intentions that went awry  -while others believe he wanted to save himself some delivery time or perhaps just a few extra step tried to change this (service).  It was reported that some residents of one working class neighborhood in Florida received a letter which demanded that they move their mailboxes from their front doors to the street.  The explanation given was that this would help to expedite delivery of their mail.  However, the neighborhood folks weren’t pleased with the suggestion to move to curb mailboxes residential and demanded an explanation from postal authorities.  As a result of the action by the employee and those in the affected neighborhood, postmasters in the area issued instructions forbidding their employees from such communications relative to mailboxes.

Credit:  USPS Ft Lauderdale, FL
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Severe U.S. Drought Slams Small Businesses

Posted on July 15, 2012 by Winter

By Parija Kavilanz/CNNMoney

Farmers, boating companies and restaurants are among the growing number of small businesses reeling from the worst drought to hit the United States in 12 years.

Authorities have already declared more than 1,000 counties in 26 states as drought natural disaster areas.

Austin, Texas, is one of them affected by the drought. The water level in Austin’s popular Lake Travis is about 45-feet below full, said Pat Roth, operations director with Just for Fun Watercraft rental, a 50-employee business which rents house boats, speed boats and jet skis to use on the lake.

Word has spread quickly as far as Houston about Lake Travis’ drought and falling water table. And it’s hurting business, said Roth.

“We had a booth at the annual boat show in Houston last month. We were trying to hand out information about our boats but people were waving us off saying ‘Y’all don’t have any water in that lake,’” because of the drought conditions.

So the company this year canceled its Fourth of July fireworks over the lake. “It was unfortunate. That’s a great event for us. Lots of people come out and rent boats for the night,” he said.

It’s déjà vu for Roth. Just for Fun suffered sluggish business because of a drought last year too. “We survived that but here we are again,” he said.

Business is down 30% to 40% so far but the company hasn’t applied for a disaster loan, he said. They’re still hoping things will turn around.

“It’s silly. The lake is over 600 feet deep. If it’s down 45 feet from full, that’s not much but people get nervous and don’t want to take a boat out.”

The company’s owners also own a restaurant by the lake, Carlos ‘n Charlie’s that benefits from the boaters said Roth.

“The restaurant is on a hill. You can drive your boat over, park it and climb up to it,” Roth said. But the lake’s receding shoreline isn’t allowing boats to get close enough to park. “It’s hurting business over there, too,” he said.

While a federal declaration signals the growing seriousness of the situation, there is a silver lining for area small businesses affected.

Once a region is declared a disaster area by the government, it allows federal agencies such as the U.S. Department of Agriculture and the Small Business Administration to then offer loans to affected small businesses.

The USDA offers loans to agricultural businesses while the SBA disaster loans are for non-farm businesses.

The SBA gives businesses a nine-month window to apply for its disaster loans.

Since the loans are received, assessed and approved on a rolling basis, the agency isn’t yet able to say how many requests it has received as a result of this year’s drought, said Carol Chestang, spokeswoman for the SBA.

But she said the SBA approved about $9 million in drought disaster loans to businesses in the Midwest last year.

A spokesperson for the USDA declined to say how many drought-related loan requests were approved in its current fiscal year which runs through September.

However, the spokesperson said the agency so far has approved a 279 disaster loans that also include drought-related loans, totaling $28.5 million…”

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The Debt Crisis Spirals

Posted on May 25, 2012 by Winter

The debt crisis in the Eurozone is worsening and European politicians are facing growing criticism for being slow to respond.  At their latest meeting the European Union leaders met until the early morning hours but were unable to come up with any concrete solutions to the lingering debt problems in the region.  Before adjourning they all but promise to come up with something more tangible at their next meeting which will take place during the month of June but investors are fearing the worse.  The major concern is the slow pace along with the indecisiveness on the part of the policy makers.  Some are saying its déjà-vu all over again and signs of the debt crisis are most visible in the financial markets.

One huge problem that drove the downward spiral in the markets during the last year was the negative feeling among investors that policy makers which includes the European leaders seem to be unable and unwilling to come to an agreement on a strategy to stop the bleeding of debt.

Investors’ fears were even more apparent when the European Central Bank made an aggressive move and funneled more than €1 trillion into the banking system.  The renewed fears relative to political dysfunction comes on the heels of the recent election in Europe which have upset the balance of power throughout the region.  “In particular, France and Germany are at odds over the issue of euro bonds, which would centralize the debt s of all 17 nations in the Eurozone.”  Some now believe that the European debt crisis could derail the global recovery now underway.

Credit:  CNN Money
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Nokia’s Fall

Posted on April 30, 2012 by Winter

Seems Nokia is now in second place which ends it 14 year history as number one cell phone provider.  The top spot now belongs to Samsung and the company shipped 92 million cell phones during the first quarter of the year.  Nokia only shipped 83 million and must now be feeling the pinch since it is the first time since 1998 that the cell phone makers has been beaten in shipments.  What’s even worse for the company, it was downgraded to junk last week by S&P and also Fitch.   The company has been on the decline for some time and sunk more than 30% since it was at its all time high back in 2007 when the iPhone first came onto the market.

The rise by Samsung “mirrored Nokia‘s fall from grace.” Samsung only held a third of Nokia’s cell phone share back in 2008 but has been rising since that time, and continues to do so.  Surprising, Nokia was the leader in smartphone up until a year ago – now it barely holds a distant third.

Today, the most popular smartphones includes those such as Apple’s iPhone, but there are others that are older, less expensive and don’t have all of the extra features, bells and whistles or apps.

Credit:  CNN Money
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RevLocal

Posted on April 26, 2012 by Winter

RevLocal, a service of ECR Online Marketing Solutions is revolutionizing the search of many businesses and has been in the internet business for more than 17 years.  RevLocal provides internet access to web hosting, SEO and SEM solutions. RevLocal believes that as consumers’ interest changes so the must one’s business models change.  Advertising strategies must be changed to meet consumers’ demands.  Revlocal‘s brands have successfully competed with and maintained first page listings with highly competitive keyword search terms.

ECR also has a proven track record of providing its customers’ value by delivering experience, relationships, tools, and an efficient process.  The goal of RevLocal is to find small and medium sized businesses that need help with Local Internet Marketing and in particular those wanting to take advantage of what can be done with their Google Place page and Bing Local profile.  RevLocal strives to accomplish this by:

  • “Claiming, populating and continually updating their listing with “authoritative” listing databases and primary local search engines.
  • Enhance listings with consistent and specific information that increases relevance and exposure.
  • Keeping clients current with search engine changes.”
  • Their target audience is:
  • “Small to mid-sizes businesses that have a Local focus
  • Business owners who are frustrated with the lack of ROI in their Yellow Pages and other marketing investments.
  • Business owners who are starting to realize things are changing online, and need strategy help in how to respond.”
Credit Source:  RevLocalcom
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Buying That Next Car

Posted on April 25, 2012 by Winter

Most of us get hit with a sales pitch the minute we step onto a car lot.  The sales person most often will play on our ego and sometimes our emotions to get us to purchase a higher priced automobile.  They talked to us about the leather seats, sunroof and all the other expensive options; perhaps telling us that we wouldn’t want the car without those things.  Those luxury items can add another 15% onto that car.  Best option, decide before you go in exactly what extras you want or need and the ones you can do without.  Know what model you want – do your search online, read reviews and ask your friends, neighbors or colleagues for recommendations or experiences.  Hearing their comments might solidify the options you eventually decide upon.

Another idea, visit several dealerships and test drive that car you think you want but try to avoid high pressure salesman or negotiating a deal on the spot.  Tell them you want to go home and think about it or perhaps you’re not ready to buy yet.  Don’t get stuck on a purchase price, do some comparison shopping and ask them “ what if you trade this car in three or five years – what kind of money will you get for it – how much have you spent on it?

If you have an old car to trade in, shop it.  In past years, trading in a car at the dealers was a convenience.  Not so today, now you can get top dollar and dealers are hungry for a good used car since it can be sold at a huge profit.    Best bet, take your car to CarMax and if they make you a decent offer, it’s good for at least a week.  Take that offer back to the dealer and ask them if they can beat it.

Source:  Money Mag
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Are You Missing an Important Tax Credit?

Posted on April 15, 2012 by Winter

Many individuals in this economy could use some extra money and most of them are missing out on a tax credit worth up to nearly $6,000.  The earned income tax credit  which is aimed at helping the working poor could help millions out of poverty each year, yet studies show that only one in five taxpayers who are eligible take it.  Most don’t because they are not aware of it.  It’s a huge loss because it’s one of the largest credits the IRS gives.  “The Tax Policy Center has found that it is the second largest cash assistance program for low-income families in the country — after the government’s food stamp program, which doled out nearly $72 billion in benefits last year. “

“By claiming the EITC, nearly 27 million taxpayers received about $59.5 billion from the credit in 2011, with refunds averaging $2,240, according to the IRS.   These payments helped an estimated 6.3 million people escape poverty in 2010, according to the most recent data from the Center on Budget and Policy Priorities. About half of those people were children. The government defines the poverty threshold as having an annual income of under about $11,000 for an individual and about $22,000 for a family of four.”

“For people earning minimum wage, having enough money to get by can be really problematic,” said Michael Saltsman, a research fellow at the Employment Policy Institute. “This credit is not only reducing poverty, but stimulating employment, so there’s definitely an increased effort on the part of the government to let people know it’s out there.”

How the credit works: “Since the EITC is refundable; claiming it lowers the total amount of taxes owed and can result in a refund if the amount of the credit exceeds the tax liability. This essentially allows low-income earners to hold on to more of the money they earned during the year instead of forcing them to give it all back to the government in the form of taxes, said Saltsman.”

“To claim the credit, the taxpayer must have a job and their income must fall under certain thresholds. The credit amount increases with the number of children claimed as dependents. For the 2011 tax year, single filers earning $13,660 or less who have no children are eligible for credits of up to $464, while married filers with income of less than $49,078 and single filers reporting income of under $43,998 who have three or more qualifying children are eligible for credits of up to $5,751.”

Craziest tax deductions

Nyja Horton, a 39-year-old single mother of two who earns $28,000 working full time as a manager at a nonprofit, found out about the credit from a TV commercial. Over the course of 12 years, she estimates she has received a total of $18,000 by claiming it.

“I was very surprised and very grateful when I found out how much I would get,” said Horton. “It meant I didn’t have to keep stretching paycheck to paycheck.”…

Source Credit:  Blake Ellis,  CNN Money
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