2010 Small Business Loan Act – Just An Act
Small businesses have been suffering this last economic recession – there is no doubt in that. But it is simply not true to say that businesses have not been able to receive credit lines from banks. Bad businesses have not been able to because after the largest banks including Bank of America, Citigroup, and Wells Fargo collapsed and needed to be bailed out by the government, they decided to tighten up their lending practices by not investing... Read More
Banks Bounce Back, Or have They?
David J. Lynch recently wrote an article “Banks bounce back, but can they handle the next crisis?” in USA Today. The real title of the article should have been “Banks bounce back, or have they?” As Mr. Lynch so astutely points out , banks are still displaying poor signs as bank balance sheets are weak, and as Simon Johnson, an economist at MIT says that while banks are being more cautious, the overall “culture remains... Read More
Debt Consolidation
Many merchants and small business owners suffer from high credit card debt and loans. An easy way to consolidate all that debt is by receiving a lump sum of cash to pay off venders, credit cards, and other financial institutions the small business owners owe. By consolidating debt into one payment, merchants can focus more on the actual running of the business rather than worrying about making payments. A merchant cash advance can payoff venders... Read More
Daylight Savings
As we approach spring, the snow melts with the warm weather, the birds begin to chirp, and people begin to crawl out of their winter holes with sunglasses to see daylight. Most likely, we will see a renewal of business, as people’s mood improve and consumers begin to spend again. Additionally, daylight savings adds an extra hour of sunlight to our days and we can pack more work which means more productivity in those hours of sunlight. ... Read More
Declined Small Business Loan
Veronica James, a Nashville Tennessee resident seeking a small business loan for her new business start-up, Urbandillo, was declined a bank loan from her recent bank the Nashville Business Journal reported on March 3rd. Ms. James decided to take to the streets, and stood outside while snow flurries drifted across her face, with a sign, “Will Work for Business Loan.” She has one patent already in existence and another pending on... Read More
Small Business Loans Are Risky
The risk in lending to a small business is extremely high – even when those businesses have a solid business plan and are run by owners with lots of experience. We are seeing a clash between small businesses that are looking for capital, large banks that have the capital but don’t want to release it, and finally the government, who is sitting at the top, creating policy, and putting pressure on banks to release money. Yet, it seems... Read More
President Obama Cracks Down on Wall Street
Mr. Obama, in yet one of his harshest speeches on Wall Street affirmed, “We want our money back, and we’re going to get it.” The President was referring to the hundreds of billions of dollars in taxpayer bailout money that was mismanaged by large firms for profits and executive bonuses. The Financial Crisis Responsibility Fee is a proposed 10 year levy on bank liabilities which would effect most heavily the 6 largest banking... Read More
Small Business Loans slashed by Local Banks
CNN Money reported that 11 of the 22 banks that received Trouble Asset Relief Funds (TARP) have cut their credit lines to small businesses by some $2.3 billion last December, according to the treasury department. While 10 of the banks have paid back their TARP money, and thus do not have to report their small business loan data to the treasury department, 11 of the other reported increase decline in small business loans, and 7 of those have declined... Read More
Big Banks – Payday Loans
Bloomberg Business Week recently just released an article discussing big banks involvement in Payday type loans, in their attempt to try and replace $15 billion in lost revenue due to new regulations regarding overdraft fees. Typically, a Payday type loan allows a customer to borrow against his future paycheck. Various banks have different programs, but they range from allowing their customers to borrow from $20 up to a $500 or a preset limit. ... Read More
Eliminate Credit Card Debt
If you are a small business owner, then you are probably thinking about how to tighten unnecessary spending, how to catch up with vendors, and how to eliminate credit card debt. Often times, business owners get stuck with high-interest credit cards, that are taxing their businesses. The merchant rarely pays down the actual premiums, and inches along by making minimum payments. Often times, if merchants can’t make a payment a certain... Read More