- Published on
Our Inventory Financing is a perfect way for you to get money for your business if you own more than $150,000 in inventory now.
With inventory financing you can use your inventory as collateral and quickly be approved even if you have personal credit challenges now.
Plus you get to enjoy generous payback terms and loan amounts, insuring your payments are affordable. You can be approved for one hundred and fifty thousand or more in inventory financing with us. Your approval amount will be based on the actual value of your inventory.
You can typically be approved for financing up to 50% of the value of your actual inventory. And interest rates on this program are very low, typically as low as 2% monthly on the outstanding loan balance. Plus you can be approved in 3 weeks or less.
To be approved you should have at least $300,000 in inventory. No jewelry, apparel, highly seasonal items, or high tech items subject to rapid obsolescence will be accepted. Our Inventory Financing is a perfect way for you to get money for your business if you own more than $150,000 in inventory now.
Your money is waiting, contact me directly so we can get you access to your own finance suite and start putting $$$ in your pocket today. With 30 core programs and thousands of participating lending sources we have or possibly can create a program that fits your needs.
With inventory financing you can use your inventory as collateral and quickly be approved even if you have personal credit challenges now.
Plus you get to enjoy generous payback terms and loan amounts, insuring your payments are affordable. You can be approved for one hundred and fifty thousand or more in inventory financing with us. Your approval amount will be based on the actual value of your inventory.
You can typically be approved for financing up to 50% of the value of your actual inventory. And interest rates on this program are very low, typically as low as 2% monthly on the outstanding loan balance. Plus you can be approved in 3 weeks or less.
To be approved you should have at least $300,000 in inventory. No jewelry, apparel, highly seasonal items, or high tech items subject to rapid obsolescence will be accepted. Our Inventory Financing is a perfect way for you to get money for your business if you own more than $150,000 in inventory now.
Your money is waiting, contact me directly so we can get you access to your own finance suite and start putting $$$ in your pocket today. With 30 core programs and thousands of participating lending sources we have or possibly can create a program that fits your needs.
- Published on
I saw this follow up story on Money Talk News and I had to post it because it's another example of the creative measures banks are taking to pick the pockets of the people who can lease afford it.
July 5, 2013
By Brandon Ballenger
I wrote about a woman who sued her employer for paying her by prepaid debit card. It turns out that payment method is pretty common, and not necessarily optional. In many instances, it’s at least the default choice, The New York Times says:
At companies where there is a choice, it is often more in theory than in practice, according to interviews with employees, state regulators and consumer advocates. Employees say they are often automatically enrolled in the payroll card programs and confronted with a pile of paperwork if they want to opt out.
Taco Bell, Walgreens, Walmart and dozens more offer this payment method, the Times says, and it’s gaining popularity with employers. Last year, $34 billion was loaded onto 4.6 million payroll cards. Those figures are expected to more
than double by 2017.
Bank of America, Wells Fargo and Citigroup, among others, pitch payroll cards as convenient for employees. But the truth is, they’re cheaper for employers, the Times says, and some banks even pay employers, per head, to enroll people.
Citibank pays the New York City Housing Authority $1 per person, the Times says.
The cards shift the financial burden of processing payment onto the employees. There are often fees for everything from an ATM withdrawal to a balance inquiry to inactivity and card replacement. Added up, these costs associated with just receiving a paycheck put many employees below minimum wage, the Times says.
Banks defend the fees by saying they’re cheaper than what someone who doesn’t have a bank would pay — even though fees are one good reason those people might avoid banking to start with.
“Someone cashing a payroll check for $500 would end up paying $15 at a 3 percent check-cashing fee,” Citigroup spokeswoman Nina Das told the Times.
My ears hear that as: We screw minimum wage workers more gently. (Though in some ways, banks are little different from payday lenders.) How can this be a fair method to pay someone for their work?
.
July 5, 2013
By Brandon Ballenger
I wrote about a woman who sued her employer for paying her by prepaid debit card. It turns out that payment method is pretty common, and not necessarily optional. In many instances, it’s at least the default choice, The New York Times says:
At companies where there is a choice, it is often more in theory than in practice, according to interviews with employees, state regulators and consumer advocates. Employees say they are often automatically enrolled in the payroll card programs and confronted with a pile of paperwork if they want to opt out.
Taco Bell, Walgreens, Walmart and dozens more offer this payment method, the Times says, and it’s gaining popularity with employers. Last year, $34 billion was loaded onto 4.6 million payroll cards. Those figures are expected to more
than double by 2017.
Bank of America, Wells Fargo and Citigroup, among others, pitch payroll cards as convenient for employees. But the truth is, they’re cheaper for employers, the Times says, and some banks even pay employers, per head, to enroll people.
Citibank pays the New York City Housing Authority $1 per person, the Times says.
The cards shift the financial burden of processing payment onto the employees. There are often fees for everything from an ATM withdrawal to a balance inquiry to inactivity and card replacement. Added up, these costs associated with just receiving a paycheck put many employees below minimum wage, the Times says.
Banks defend the fees by saying they’re cheaper than what someone who doesn’t have a bank would pay — even though fees are one good reason those people might avoid banking to start with.
“Someone cashing a payroll check for $500 would end up paying $15 at a 3 percent check-cashing fee,” Citigroup spokeswoman Nina Das told the Times.
My ears hear that as: We screw minimum wage workers more gently. (Though in some ways, banks are little different from payday lenders.) How can this be a fair method to pay someone for their work?
.
- Published on
Accion Texas Inc.’s Lending Data Helps Researchers Prove That Credit Greatly Increases Entrepreneurial Survival Rates, Sales Growth and Job Creation in the United States
SAN ANTONIO — Gearing up for Small Business Week June 17 to June 21, the nation’s largest nonprofit microlender, Accion Texas Inc., announces the remarkable outcome of a recent academic study: “Startups receiving funding are dramatically more likely to survive, enjoy higher revenues and create more jobs.”
That’s the conclusion of four university professors who have published their results in a research paper titled “How Much Does Credit Matter for Entrepreneurial Success in the United States?”
“Obtaining a loan has a strong effect on the future financial position of startups,” wrote the researchers after analyzing client data collected by Accion Texas from 2006 through 2011.
“Receiving a loan increases the probability of survival by 44 percentage points, which is an enormous effect,” said Mark J. Garmaise, associate professor at the University of California’s Anderson School of Management. “Loan provision also increases firm revenues and employment.”
Garmaise worked with Cesare Fracassi and Shimon Kogan, both assistant professors of finance at the McCombs School of Business at the University of Texas Austin; and Gabriel Natividad, assistant professor of management and organizations at the New York University Stern School of Business.
The researchers also analyzed survival rates and loan provision for specific groups to determine who might benefit the most from receiving a small business loan.
“We find that the biggest benefits go to applicants with at least some college and those without previous senior management experience at another firm. The latter group probably can secure financing from other sources and therefore the Accion Texas loan has a smaller impact on their eventual success,” the report concluded.
The four researchers studied data on 5,400 Accion Texas applicants by accessing the organization’s proprietary Microloan Management Services™ - the only small business loan underwriting platform of its kind in the United States.
Key findings include:
The full study can be downloaded from this web address: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2157707
About Accion Texas Inc.
Accion Texas Inc. is a nonprofit, multi-state micro- and small business lender that helps new and existing entrepreneurs successfully grow their businesses. Through affordable lending and business development services, Accion Texas Inc. is committed to empowering diverse individuals and small businesses that have limited access to traditional sources of capital.
Accion Texas Inc. manages the nation’s largest microloan portfolio and operates 20 offices in eight states: Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Missouri, Tennessee and Texas. The organization is the largest member of the Accion U.S. Network. Since its founding in 1994, Accion Texas Inc. has disbursed more than 13,400 loans totaling $143 million and helped to create or retain more than 10,500 jobs.
SAN ANTONIO — Gearing up for Small Business Week June 17 to June 21, the nation’s largest nonprofit microlender, Accion Texas Inc., announces the remarkable outcome of a recent academic study: “Startups receiving funding are dramatically more likely to survive, enjoy higher revenues and create more jobs.”
That’s the conclusion of four university professors who have published their results in a research paper titled “How Much Does Credit Matter for Entrepreneurial Success in the United States?”
“Obtaining a loan has a strong effect on the future financial position of startups,” wrote the researchers after analyzing client data collected by Accion Texas from 2006 through 2011.
“Receiving a loan increases the probability of survival by 44 percentage points, which is an enormous effect,” said Mark J. Garmaise, associate professor at the University of California’s Anderson School of Management. “Loan provision also increases firm revenues and employment.”
Garmaise worked with Cesare Fracassi and Shimon Kogan, both assistant professors of finance at the McCombs School of Business at the University of Texas Austin; and Gabriel Natividad, assistant professor of management and organizations at the New York University Stern School of Business.
The researchers also analyzed survival rates and loan provision for specific groups to determine who might benefit the most from receiving a small business loan.
“We find that the biggest benefits go to applicants with at least some college and those without previous senior management experience at another firm. The latter group probably can secure financing from other sources and therefore the Accion Texas loan has a smaller impact on their eventual success,” the report concluded.
The four researchers studied data on 5,400 Accion Texas applicants by accessing the organization’s proprietary Microloan Management Services™ - the only small business loan underwriting platform of its kind in the United States.
Key findings include:
- Startup capital plays a significant role in the future financial position of small businesses
- Startups receiving capital are dramatically more likely to survive, have stronger revenue and create jobs
- A startup loan helps small businesses build assets while growing a business
- Financing increased the probability of a firm’s survival by 44 percent
- Borrowers who received a loan from Accion Texas had an overall survival rate of 74 percent
- Borrowers in the study experienced 72.9 percent sales growth (compared to 41 percent for non-borrowers)
- Borrowers were able to double their number of employees
The full study can be downloaded from this web address: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2157707
About Accion Texas Inc.
Accion Texas Inc. is a nonprofit, multi-state micro- and small business lender that helps new and existing entrepreneurs successfully grow their businesses. Through affordable lending and business development services, Accion Texas Inc. is committed to empowering diverse individuals and small businesses that have limited access to traditional sources of capital.
Accion Texas Inc. manages the nation’s largest microloan portfolio and operates 20 offices in eight states: Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Missouri, Tennessee and Texas. The organization is the largest member of the Accion U.S. Network. Since its founding in 1994, Accion Texas Inc. has disbursed more than 13,400 loans totaling $143 million and helped to create or retain more than 10,500 jobs.
- Published on
Well, I saw this article in the MPA by Kelli Rogers | 01 Jul 2013 and I thought it was interesting enough to repost.
Bank of America has joined the growing trend of financial institutions offshoring mortgage BPO to cut costs, according to a new report.
Bank of America has opened a unit in India to review home-valuation reports as it seeks to rebuild share in U.S. mortgages at a lower cost, according to Bloomberg reports.
Workers in the new Bangalore office follow checklists to determine if appraisals are complete, several people who requested anonymity told Bloomberg. The firm also eliminated jobs of licensed U.S. workers in its LandSafe business, the appraisal division of the Charlotte, North Carolina-based company, which made $78.7 billion in loans last year, the people said.
In February, BofA cut about 5% of LandSafe employees, saying they weren’t needed as overdue loans fell. Licensed reviewers, who check the accuracy of appraisal valuations and can earn more than $100,000 a year, were among those who lost their jobs, according to reports.
The trend to move mortgage BPO offshore is largely driven by banks’ need to reduce costs, and the labor cost in India is, spending on skill level, approximately 50% less than in the U.S., according to Judy Wheatley, senior vice president of
compliance for Indecomm Global Services, a consulting and outsourcing company.
Lenders are under greater pressure than ever to reduce costs because demand for refinancings, the biggest source of volume for the firms, is falling amid surging mortgage rates.
“The mortgage industry is cyclical with ups and downs, so what outsourcing allows companies to do is to staff internally at a certain level, and utilize outsourced resources to flex up their volume and meet consumer demand faster,” Wheatley said.
Bank of America, once the biggest U.S. mortgage lender, spent more than $45 billion to settle disputes tied to defective mortgages and foreclosures, so it may come as little surprise that the company has plans for an aggressive cost-cutting
scheme, with CEO Brian T. Moynihan planning to save $8 billion a year.
Other firms have added staff in lower-cost cities. Goldman Sachs Group saw headcount in places including Bangalore and Salt Lake City almost double since 2007 to 22% of employees, CEO Lloyd Blankfein said in November.
Bank of America has joined the growing trend of financial institutions offshoring mortgage BPO to cut costs, according to a new report.
Bank of America has opened a unit in India to review home-valuation reports as it seeks to rebuild share in U.S. mortgages at a lower cost, according to Bloomberg reports.
Workers in the new Bangalore office follow checklists to determine if appraisals are complete, several people who requested anonymity told Bloomberg. The firm also eliminated jobs of licensed U.S. workers in its LandSafe business, the appraisal division of the Charlotte, North Carolina-based company, which made $78.7 billion in loans last year, the people said.
In February, BofA cut about 5% of LandSafe employees, saying they weren’t needed as overdue loans fell. Licensed reviewers, who check the accuracy of appraisal valuations and can earn more than $100,000 a year, were among those who lost their jobs, according to reports.
The trend to move mortgage BPO offshore is largely driven by banks’ need to reduce costs, and the labor cost in India is, spending on skill level, approximately 50% less than in the U.S., according to Judy Wheatley, senior vice president of
compliance for Indecomm Global Services, a consulting and outsourcing company.
Lenders are under greater pressure than ever to reduce costs because demand for refinancings, the biggest source of volume for the firms, is falling amid surging mortgage rates.
“The mortgage industry is cyclical with ups and downs, so what outsourcing allows companies to do is to staff internally at a certain level, and utilize outsourced resources to flex up their volume and meet consumer demand faster,” Wheatley said.
Bank of America, once the biggest U.S. mortgage lender, spent more than $45 billion to settle disputes tied to defective mortgages and foreclosures, so it may come as little surprise that the company has plans for an aggressive cost-cutting
scheme, with CEO Brian T. Moynihan planning to save $8 billion a year.
Other firms have added staff in lower-cost cities. Goldman Sachs Group saw headcount in places including Bangalore and Salt Lake City almost double since 2007 to 22% of employees, CEO Lloyd Blankfein said in November.
- Published on
This program has been around for a long time, but FHA has added some incentives.
The Federal Housing Administration has updated its guidance for its long-running REO sales program that provides incentives for policeman, firefighters and teachers to purchase FHA-owned homes in designated revitalization areas.
The Department of Housing and Urban Development will sell FHA properties to municipal employees at 50% of the appraised value provided they agree to fix up and live in the home for at least three years.
The new mortgagee letter notes that eligible buyers can take out an FHA-insured mortgage with a $100 downpayment and
“you may finance closing costs,” according to mortgagee letter 2013-20.
“The mortgagee letter provides clarification that seemed to be needed based on input from the industry, and gives us an opportunity to remind lenders of the basic program requirements,” a HUD spokesman said.
An eligible buyer can also get an FHA 203(k) mortgage that provides financing for the purchase and renovation of the property. Participants in the “Good Neighbor Next Door Sales Program” can also take out conventional or VA financing.
However, the borrower earns the 50% discount by living in the house for three years.
If the property has an appraised value of $100,000, the borrower must take out a second mortgage and a note on the
discounted amount, which is $50,000 in this example.
The mortgagee letter contains the note and second mortgages that the borrower must sign.
No interest or payments are required on this "silent second" mortgage if the borrower fulfills the obligation to live
in the home. However, they will be required to pay a pro-rata portion of the discount to HUD if they fail to live in the house for three
years.
The Federal Housing Administration has updated its guidance for its long-running REO sales program that provides incentives for policeman, firefighters and teachers to purchase FHA-owned homes in designated revitalization areas.
The Department of Housing and Urban Development will sell FHA properties to municipal employees at 50% of the appraised value provided they agree to fix up and live in the home for at least three years.
The new mortgagee letter notes that eligible buyers can take out an FHA-insured mortgage with a $100 downpayment and
“you may finance closing costs,” according to mortgagee letter 2013-20.
“The mortgagee letter provides clarification that seemed to be needed based on input from the industry, and gives us an opportunity to remind lenders of the basic program requirements,” a HUD spokesman said.
An eligible buyer can also get an FHA 203(k) mortgage that provides financing for the purchase and renovation of the property. Participants in the “Good Neighbor Next Door Sales Program” can also take out conventional or VA financing.
However, the borrower earns the 50% discount by living in the house for three years.
If the property has an appraised value of $100,000, the borrower must take out a second mortgage and a note on the
discounted amount, which is $50,000 in this example.
The mortgagee letter contains the note and second mortgages that the borrower must sign.
No interest or payments are required on this "silent second" mortgage if the borrower fulfills the obligation to live
in the home. However, they will be required to pay a pro-rata portion of the discount to HUD if they fail to live in the house for three
years.
- Published on
A tax provision that spares underwater borrowers from being penalized when they agree to a short sale is due to expire at the end of this year. But two senators want to extend the Mortgage Forgiveness Tax Relief Act through 2015.
Senators Debbie Stabenow, D-Mich., and Dean Heller, R-Nev., introduced the extension bill Wednesday.
“It is bad enough that so many families are faced with mortgages that now exceed the value of their home. But
to add insult to injury, without this bipartisan bill, the IRS would once again require these families to pay hundreds or thousands of dollars in additional income tax when they sell or refinance their home. That’s just wrong,” Sen.
Stabenow said.
Congress has provided this tax relief for underwater homeowners since 2008.
If it isn’t extended, more distressed borrowers will choose do go through foreclosure as opposed to a short sale or
deed-in-lieu transaction.
The Hope Now servicer alliance recently reported that 83,400 short sales were completed in the first quarter.
“If Congress does not act this year, then thousands of Nevadans who are underwater in their homes will be forced to
pay a tax at a time when what they need is some relief,” Sen. Heller said. “This legislation is a common sense approach that will prevent Nevadans from being
taxed on income they never
received.”
Senators Debbie Stabenow, D-Mich., and Dean Heller, R-Nev., introduced the extension bill Wednesday.
“It is bad enough that so many families are faced with mortgages that now exceed the value of their home. But
to add insult to injury, without this bipartisan bill, the IRS would once again require these families to pay hundreds or thousands of dollars in additional income tax when they sell or refinance their home. That’s just wrong,” Sen.
Stabenow said.
Congress has provided this tax relief for underwater homeowners since 2008.
If it isn’t extended, more distressed borrowers will choose do go through foreclosure as opposed to a short sale or
deed-in-lieu transaction.
The Hope Now servicer alliance recently reported that 83,400 short sales were completed in the first quarter.
“If Congress does not act this year, then thousands of Nevadans who are underwater in their homes will be forced to
pay a tax at a time when what they need is some relief,” Sen. Heller said. “This legislation is a common sense approach that will prevent Nevadans from being
taxed on income they never
received.”
- Published on
This is a re-blog. It was written by Dan Danner, Published June 17, 2013 |
FoxNews.com
During National Small Business Week, politicians and bureaucrats give a lot of lip service to small business. But you might wonder what the small-business community itself might say if they themselves had the podium this week.
Here’s what I think they would say:
I’m a risk taker — but my risks are purposeful.
I’m different from a lot of folks, because I take the risks and I accept the consequences. Scientists who study risk-takers
include “people who start a business” in a category that includes mountain climbers, Navy SEALs and explorers. We aren’t adrenaline junkies, but we’re brave enough to risk everything we own to start a business that we think will serve our community and allow us to be our own boss.
I work seven days a week.
There is no such thing as a day off for a small business owner. Especially when the business is really small — i.e. just a few or no employees. If we want to take a day off or go on vacation, the business itself must temporarily close, and that can be more costly than we can afford.
My employees are my family.
There are an estimated 2.5 million true “family businesses” in the United States. That estimate includes all employing
businesses that have two or more family members as owners, and two or more adult family members who actively participate as manager, employee, or as-needed volunteer.
As for the non-blood relatives who work for me? I’ll put it this way: I know the names of my employees’ spouses and kids. I care about their lives. It’s personal.
When money is tight, I get paid last; employee payroll comes first.
Don’t ever assume that a business owner is “rich.” You may be talking to someone who hasn’t cut herself a paycheck in
months because that’s what has to be done to make sure employees get paid.
You call it ‘income;’ I call it ‘cash flow.’
Yes, small-business owners pay their taxes like individuals (versus like big corporations who get a lot of tax breaks), but
there is a big difference between our business income and your paycheck. Our income feeds our families, yes, but it also needs to be managed carefully for those times when sales are slow, the economy is dragging, or to re-invest in the
business and create new jobs.
My business is the future of my family
My business is my retirement and it is my legacy to my kids; I hope to pass it on to them.
I create about two-thirds of net new jobs, and more…
Historically, small firms create the lion’s share of net new jobs in the U.S. Collectively, they are responsible for almost half
of the non-farm GDP and employ nearly half of the private-sector workforce. All of this means I should be more than just a talking point, but politicians can make me sound more like a message and less like the economic powerhouse that I am.
I’m an innovator.
According to the Small Business Administration’s Office of Advocacy, of high patenting firms (15 or more in a 4-year period), small businesses produce 16 times more patents per employee than large patenting firms.
I’m a philanthropist.
In any given year, over ninety percent of small employers contribute to their community through volunteering, in-kind
contributions, and/or direct cash donations. I give to the Little League, buy uniforms for the high school band and advertise in the yearbook every year.
I’m a good neighbor.
According to Gallup, only the U.S. military outranks small business when it comes to groups of people they trust Congress,
for example, is in last place on that list).
The cost of health insurance is crushing me.
Buying health insurance for myself and my employees has been difficult, literally, for decades. Obamacare promises to make the cost much, much higher. When I see premium quotes these days, I’m beyond saying “uncle!” and feeling more like saying “I quit!” Fortunately, it’s not in my nature to quit.
I love what I do and I wouldn’t have it any other way.
Being my own boss, doing it the way I want to, providing jobs and contributing to my community…this the very definition of freedom, and it is the American dream.
Is it hard work? You bet it is. But I love it.
Once you get to know the people behind the small businesses in your community, you’ve taken the first step toward supporting these brave men and women.
Dan Danner is president and CEO of the National Federation of Independent Business (NFIB).
FoxNews.com
During National Small Business Week, politicians and bureaucrats give a lot of lip service to small business. But you might wonder what the small-business community itself might say if they themselves had the podium this week.
Here’s what I think they would say:
I’m a risk taker — but my risks are purposeful.
I’m different from a lot of folks, because I take the risks and I accept the consequences. Scientists who study risk-takers
include “people who start a business” in a category that includes mountain climbers, Navy SEALs and explorers. We aren’t adrenaline junkies, but we’re brave enough to risk everything we own to start a business that we think will serve our community and allow us to be our own boss.
I work seven days a week.
There is no such thing as a day off for a small business owner. Especially when the business is really small — i.e. just a few or no employees. If we want to take a day off or go on vacation, the business itself must temporarily close, and that can be more costly than we can afford.
My employees are my family.
There are an estimated 2.5 million true “family businesses” in the United States. That estimate includes all employing
businesses that have two or more family members as owners, and two or more adult family members who actively participate as manager, employee, or as-needed volunteer.
As for the non-blood relatives who work for me? I’ll put it this way: I know the names of my employees’ spouses and kids. I care about their lives. It’s personal.
When money is tight, I get paid last; employee payroll comes first.
Don’t ever assume that a business owner is “rich.” You may be talking to someone who hasn’t cut herself a paycheck in
months because that’s what has to be done to make sure employees get paid.
You call it ‘income;’ I call it ‘cash flow.’
Yes, small-business owners pay their taxes like individuals (versus like big corporations who get a lot of tax breaks), but
there is a big difference between our business income and your paycheck. Our income feeds our families, yes, but it also needs to be managed carefully for those times when sales are slow, the economy is dragging, or to re-invest in the
business and create new jobs.
My business is the future of my family
My business is my retirement and it is my legacy to my kids; I hope to pass it on to them.
I create about two-thirds of net new jobs, and more…
Historically, small firms create the lion’s share of net new jobs in the U.S. Collectively, they are responsible for almost half
of the non-farm GDP and employ nearly half of the private-sector workforce. All of this means I should be more than just a talking point, but politicians can make me sound more like a message and less like the economic powerhouse that I am.
I’m an innovator.
According to the Small Business Administration’s Office of Advocacy, of high patenting firms (15 or more in a 4-year period), small businesses produce 16 times more patents per employee than large patenting firms.
I’m a philanthropist.
In any given year, over ninety percent of small employers contribute to their community through volunteering, in-kind
contributions, and/or direct cash donations. I give to the Little League, buy uniforms for the high school band and advertise in the yearbook every year.
I’m a good neighbor.
According to Gallup, only the U.S. military outranks small business when it comes to groups of people they trust Congress,
for example, is in last place on that list).
The cost of health insurance is crushing me.
Buying health insurance for myself and my employees has been difficult, literally, for decades. Obamacare promises to make the cost much, much higher. When I see premium quotes these days, I’m beyond saying “uncle!” and feeling more like saying “I quit!” Fortunately, it’s not in my nature to quit.
I love what I do and I wouldn’t have it any other way.
Being my own boss, doing it the way I want to, providing jobs and contributing to my community…this the very definition of freedom, and it is the American dream.
Is it hard work? You bet it is. But I love it.
Once you get to know the people behind the small businesses in your community, you’ve taken the first step toward supporting these brave men and women.
Dan Danner is president and CEO of the National Federation of Independent Business (NFIB).
- Published on
Now if you can believe all the other past mystery happenings of Bank of AMERICA losing hundreds of millions of dollars without a full explanation "Where did all that money really go?", then this should be easy. How could a prestigious firm with the name of AMERICA in its title squeeze homeowners out of the last few nickels in their pockets? Wasn't their tax dollars from the bank bailout sufficient for Bank of AMERICA? Here's the story we are hearing.
Former employees of Bank of AMERICA have claimed the bank routinely stalled the application process for the government’s Home Affordable Modification Program (HAMP).
Several former Bank of America employees in customer service positions offered declarations in the case – Kamie Kahlko v. Bank of America – suggesting the bank was more interested in delaying HAMP applications and eventually steering
troubled borrowers into solutions or situations that were more profitable for the bank.
The employee statements, filed in federal court in Boston as part of a multi-state class action, also pointed to the bank for encouraging the wrongful informing of homeowners about the status of documents already on file.
In several of the depositions, the former employees told the servicer routinely stalled and failed to timely process documents associated with the HAMP loan modification requests.
One woman working as a customer service representative said she "was instructed to inform every homeowner who called in that their file was under review – even when the computer system showed that the file had not been accessed in months or when the homeowner had already been rejected for a loan modification."
Bank of AMERICA has not had a chance to respond in court records but is expected to soon, according to reports. .
Former employees of Bank of AMERICA have claimed the bank routinely stalled the application process for the government’s Home Affordable Modification Program (HAMP).
Several former Bank of America employees in customer service positions offered declarations in the case – Kamie Kahlko v. Bank of America – suggesting the bank was more interested in delaying HAMP applications and eventually steering
troubled borrowers into solutions or situations that were more profitable for the bank.
The employee statements, filed in federal court in Boston as part of a multi-state class action, also pointed to the bank for encouraging the wrongful informing of homeowners about the status of documents already on file.
In several of the depositions, the former employees told the servicer routinely stalled and failed to timely process documents associated with the HAMP loan modification requests.
One woman working as a customer service representative said she "was instructed to inform every homeowner who called in that their file was under review – even when the computer system showed that the file had not been accessed in months or when the homeowner had already been rejected for a loan modification."
Bank of AMERICA has not had a chance to respond in court records but is expected to soon, according to reports. .
- Published on
CONSTANCE GUSTKE, BANKRATE.COM
Did you know banks rate 3rd in the number of consumer complaints in relationship to all other types of businesses out there. Third right now and the way they are creating all types of fees I am sure they will succeed at being number ONE. Since we all need to have some type of banking system in our lives it's really time to look at a credit union if you haven't done so already. Credit unions come in all stripes and colors. Currently, there are 7,200 credit unions in the U.S., according to the Credit Union National Association. And not all of them are just community-related.
Your church, university or even your military branch may offer its own credit union with sweet deals and special perks, such as a no-minimum checking account that also pays interest. And that's on top of the better loan rates and fewer bank fees offered by credit unions nationwide, says Bill Cheney, CEO of CUNA. On average, a family saved about $130 last year by using credit unions rather than banks, he says.
"There's a credit union for everyone," Cheney says. "You just have to find it." To see if your university, church or other affiliate has a credit union, visit aSmarterChoice.org. Before plunking down your money, make sure the credit union's deposits are insured by the National Credit Union Administration.
As you research credit unions as a banking alternative, check out these five types of credit unions worth considering.
Tap your alma mater
Are you a university alumnus? Then chances are good that your university offers a credit union open to its alumni, faculty, students and even nearby residents. At the University of Southern California Credit Union in Los Angeles, students,
alumni and staff can use the credit union's three on-campus branches. "Students come here to establish credit," says Gary Perez, CEO of USC Credit Union. "We offer free unlimited checking and premium points on deposits."
Other USC student services include: financial workshops, student loans and account packages. Los Angeles residents are also welcome. And the USC credit union serves University of Maine students, faculty, employees and some local residents. It even offers a "Tunes+" checking account, with which you can earn credits for free iTunes downloads.
Credit unions in the community
Community development financial institutions, or CDFIs, are aimed at low- to moderate-income people. Many
of these credit unions are interested in economic justice, says Pamela Owens, vice president of programs for the National Federation of Community Development Credit Unions. Their designation allows them to apply for special government
grants to open multiple branches in hard-hit communities, she says. They can offer affordable mortgages or special, matching savings accounts. For example, at Alternatives Federal Credit Union in Ithaca, N.Y., a member can get
free tax preparation and a seven-week financial education course. The credit union has offered savings accounts that members can open with a $5 minimum deposit. The individual development accounts also match your savings deposits
when you're working toward a long-term goal, such as owning a home or opening a business.
The Lower East Side People's Federal Credit Union in New York also offers free tax preparation, financial counseling and has offered a savings account that could be opened with just $30. "These credit unions are more apt to work with people, such as helping you with credit repair so you can raise your score," Owens says.
Did you know banks rate 3rd in the number of consumer complaints in relationship to all other types of businesses out there. Third right now and the way they are creating all types of fees I am sure they will succeed at being number ONE. Since we all need to have some type of banking system in our lives it's really time to look at a credit union if you haven't done so already. Credit unions come in all stripes and colors. Currently, there are 7,200 credit unions in the U.S., according to the Credit Union National Association. And not all of them are just community-related.
Your church, university or even your military branch may offer its own credit union with sweet deals and special perks, such as a no-minimum checking account that also pays interest. And that's on top of the better loan rates and fewer bank fees offered by credit unions nationwide, says Bill Cheney, CEO of CUNA. On average, a family saved about $130 last year by using credit unions rather than banks, he says.
"There's a credit union for everyone," Cheney says. "You just have to find it." To see if your university, church or other affiliate has a credit union, visit aSmarterChoice.org. Before plunking down your money, make sure the credit union's deposits are insured by the National Credit Union Administration.
As you research credit unions as a banking alternative, check out these five types of credit unions worth considering.
Tap your alma mater
Are you a university alumnus? Then chances are good that your university offers a credit union open to its alumni, faculty, students and even nearby residents. At the University of Southern California Credit Union in Los Angeles, students,
alumni and staff can use the credit union's three on-campus branches. "Students come here to establish credit," says Gary Perez, CEO of USC Credit Union. "We offer free unlimited checking and premium points on deposits."
Other USC student services include: financial workshops, student loans and account packages. Los Angeles residents are also welcome. And the USC credit union serves University of Maine students, faculty, employees and some local residents. It even offers a "Tunes+" checking account, with which you can earn credits for free iTunes downloads.
Credit unions in the community
Community development financial institutions, or CDFIs, are aimed at low- to moderate-income people. Many
of these credit unions are interested in economic justice, says Pamela Owens, vice president of programs for the National Federation of Community Development Credit Unions. Their designation allows them to apply for special government
grants to open multiple branches in hard-hit communities, she says. They can offer affordable mortgages or special, matching savings accounts. For example, at Alternatives Federal Credit Union in Ithaca, N.Y., a member can get
free tax preparation and a seven-week financial education course. The credit union has offered savings accounts that members can open with a $5 minimum deposit. The individual development accounts also match your savings deposits
when you're working toward a long-term goal, such as owning a home or opening a business.
The Lower East Side People's Federal Credit Union in New York also offers free tax preparation, financial counseling and has offered a savings account that could be opened with just $30. "These credit unions are more apt to work with people, such as helping you with credit repair so you can raise your score," Owens says.
- Published on
By Minda Zetlin
Losing your job and emptying your bank account won't directly affect your credit score. Neither will refusing to pay your rent. In fact, you could be in prison facing murder charges, but as long as your bills were paid on time, your credit score wouldn't suffer a bit.
Of course, it's always best to pay all your bills on time (and stay out of trouble with the law). Nevertheless, there are many things that you might think would affect your credit score but don't. For example, some quick thinking can prevent a late payment from lowering your score. Here's a closer look at six items that -- perhaps surprisingly -- won't harm your credit score:
1.
Changes to your income or assets.
"People get concerned that if they are laid off or get part-time work, that will affect their credit score, and it doesn't, as long as they continue to pay their bills," says Becky Walzak, president of RJB Walzak Consulting, which assists
financial institutions with risk management, including assessing the creditworthiness of loan applicants. Of course, losing your job can affect your ability to qualify for new credit as financial institutions review income and employment as well as credit scores. But receiving unemployment or even public assistance will not affect your credit score.
2.
Not paying your rent.
Let's say you're withholding your rent because you're in a dispute with your landlord, or you've broken a lease. "That doesn't show up on your credit score unless your landlord takes you to court and a judgment is entered," says Kelley
Long, certified public accountant and a member of the American Institute of CPAs' Financial Literacy Commission. However, since landlords typically ask for references from prospective tenants, it may affect your ability to rent another place in the future. In fact, legal trouble of any sort will not affect your credit score, as long as you continue to pay any debts you've incurred.
3.
Late payment of taxes -- up to a point.
"Paying your property taxes late will show up on your credit score if your county puts a lien on your home," Long says. Depending on your county's policies and practices, though, that will probably take a while. Likewise, problems with
the Internal Revenue Service won't immediately show up on your credit score. "If you don't pay your taxes and then enter an agreement with the IRS, that goes on your report as another loan," she says.
4.
Late payments to small vendors who don't report to the credit bureaus.
In order for a debt to count toward your credit score, it needs to be reported to one of the big three credit bureaus: TransUnion, Experian or Equifax. "Small vendors typically don't report to credit bureaus, and some large companies don't
either," Walzak says. Once a vendor sends your account to a collections agency, however, it typically will be reported to the credit bureaus, but since collections agencies only pay a portion of what they collect to their clients, most small vendors won't take this step in a hurry.
5.
Anything your creditor agrees not to report.
There's another reason creditors may not report your unpaid debt to a credit bureau: Because you asked them not to.
"Often, with mortgages, people work out modifications," Walzak says. "Then people think, 'I've got some debt relief and my car is shot,' so they go apply for a car loan and they're surprised to learn that their mortgage bank is reporting them delinquent. But it says in the mortgage agreement that if you pay anything less than the amount owed, you will be considered delinquent. So that's a question to ask when you're talking to a bank when reducing your debt or modifying your loan: 'Will you report me as delinquent?'"
People get concerned that if they are laid off or get part-time work, that will affect their credit score, and it doesn't, as long as they continue to pay their bills.
And, she says, you can ask a credit card company not to report you, depending on the circumstances. "If you accidentally don't send a payment, or send it late one time, you should call the credit card company, let them know, and ask them not to report it. A lot of times they won't even mark it as late. What really hurts is paying late over and over."
6.
Not carrying a balance.
"The question I get most often is, 'What balance do I need to carry on my credit card?'" Long says. "You don't have to carry a balance to show good credit." The confusion arises, she says, because many people understand that if they have a
credit card but never use it, it won't improve their credit score. That's because a credit score is supposed to show your ability to repay debt. You can't demonstrate your ability to repay debt if you never have any to repay. But using a credit card and paying it off each month is a great way to do this.
On the other hand, you do risk hurting your credit score if you run up high credit card balances, even if you pay them in full each month -- a strategy many people adopt in order to capture credit card rewards. Since high utilization (using most or all of your available credit) negatively affects your score, it can have a negative impact if the credit card company happens to report to the credit card bureaus on a day when your balance is high.
If you still want to chase those rewards points, though, there are strategies for avoiding this effect. "I use American
Express to pay for everything and then I pay it off," Walzak says. "The closing date is the 27th of the month, and they typically report to the credit bureaus on the first of the month. So I make sure to get my payment in between the 27th and the 30th."
Remember that you don't actually have to wait till the closing date to make a payment, says Anthony Sprauve, director of communications for MyFico.com. "I use a credit card to make most purchases so as to accumulate airline miles," he says. "But I make multiple payments throughout the month."
Whatever your approach, keep in mind that a credit score is only one piece of your financial picture, and that any prospective creditor will consider many other factors, Walzak says. Someone with a less-than-perfect credit score who has
extenuating circumstances may still get credit, while someone with a good credit score but a bad financial picture may not. "I've seen so many people with good credit scores and then I look at the amount of debt they have and I think: 'These people can't manage their money,'" she says.
Losing your job and emptying your bank account won't directly affect your credit score. Neither will refusing to pay your rent. In fact, you could be in prison facing murder charges, but as long as your bills were paid on time, your credit score wouldn't suffer a bit.
Of course, it's always best to pay all your bills on time (and stay out of trouble with the law). Nevertheless, there are many things that you might think would affect your credit score but don't. For example, some quick thinking can prevent a late payment from lowering your score. Here's a closer look at six items that -- perhaps surprisingly -- won't harm your credit score:
1.
Changes to your income or assets.
"People get concerned that if they are laid off or get part-time work, that will affect their credit score, and it doesn't, as long as they continue to pay their bills," says Becky Walzak, president of RJB Walzak Consulting, which assists
financial institutions with risk management, including assessing the creditworthiness of loan applicants. Of course, losing your job can affect your ability to qualify for new credit as financial institutions review income and employment as well as credit scores. But receiving unemployment or even public assistance will not affect your credit score.
2.
Not paying your rent.
Let's say you're withholding your rent because you're in a dispute with your landlord, or you've broken a lease. "That doesn't show up on your credit score unless your landlord takes you to court and a judgment is entered," says Kelley
Long, certified public accountant and a member of the American Institute of CPAs' Financial Literacy Commission. However, since landlords typically ask for references from prospective tenants, it may affect your ability to rent another place in the future. In fact, legal trouble of any sort will not affect your credit score, as long as you continue to pay any debts you've incurred.
3.
Late payment of taxes -- up to a point.
"Paying your property taxes late will show up on your credit score if your county puts a lien on your home," Long says. Depending on your county's policies and practices, though, that will probably take a while. Likewise, problems with
the Internal Revenue Service won't immediately show up on your credit score. "If you don't pay your taxes and then enter an agreement with the IRS, that goes on your report as another loan," she says.
4.
Late payments to small vendors who don't report to the credit bureaus.
In order for a debt to count toward your credit score, it needs to be reported to one of the big three credit bureaus: TransUnion, Experian or Equifax. "Small vendors typically don't report to credit bureaus, and some large companies don't
either," Walzak says. Once a vendor sends your account to a collections agency, however, it typically will be reported to the credit bureaus, but since collections agencies only pay a portion of what they collect to their clients, most small vendors won't take this step in a hurry.
5.
Anything your creditor agrees not to report.
There's another reason creditors may not report your unpaid debt to a credit bureau: Because you asked them not to.
"Often, with mortgages, people work out modifications," Walzak says. "Then people think, 'I've got some debt relief and my car is shot,' so they go apply for a car loan and they're surprised to learn that their mortgage bank is reporting them delinquent. But it says in the mortgage agreement that if you pay anything less than the amount owed, you will be considered delinquent. So that's a question to ask when you're talking to a bank when reducing your debt or modifying your loan: 'Will you report me as delinquent?'"
People get concerned that if they are laid off or get part-time work, that will affect their credit score, and it doesn't, as long as they continue to pay their bills.
And, she says, you can ask a credit card company not to report you, depending on the circumstances. "If you accidentally don't send a payment, or send it late one time, you should call the credit card company, let them know, and ask them not to report it. A lot of times they won't even mark it as late. What really hurts is paying late over and over."
6.
Not carrying a balance.
"The question I get most often is, 'What balance do I need to carry on my credit card?'" Long says. "You don't have to carry a balance to show good credit." The confusion arises, she says, because many people understand that if they have a
credit card but never use it, it won't improve their credit score. That's because a credit score is supposed to show your ability to repay debt. You can't demonstrate your ability to repay debt if you never have any to repay. But using a credit card and paying it off each month is a great way to do this.
On the other hand, you do risk hurting your credit score if you run up high credit card balances, even if you pay them in full each month -- a strategy many people adopt in order to capture credit card rewards. Since high utilization (using most or all of your available credit) negatively affects your score, it can have a negative impact if the credit card company happens to report to the credit card bureaus on a day when your balance is high.
If you still want to chase those rewards points, though, there are strategies for avoiding this effect. "I use American
Express to pay for everything and then I pay it off," Walzak says. "The closing date is the 27th of the month, and they typically report to the credit bureaus on the first of the month. So I make sure to get my payment in between the 27th and the 30th."
Remember that you don't actually have to wait till the closing date to make a payment, says Anthony Sprauve, director of communications for MyFico.com. "I use a credit card to make most purchases so as to accumulate airline miles," he says. "But I make multiple payments throughout the month."
Whatever your approach, keep in mind that a credit score is only one piece of your financial picture, and that any prospective creditor will consider many other factors, Walzak says. Someone with a less-than-perfect credit score who has
extenuating circumstances may still get credit, while someone with a good credit score but a bad financial picture may not. "I've seen so many people with good credit scores and then I look at the amount of debt they have and I think: 'These people can't manage their money,'" she says.