Content about Bank

CHICAGO — Quick. Easy. Efficient. Who doesn’t love online banking? Be aware, though, of the danger: Hackers can access your account, drain your funds and threaten the survival of your business.

The risk is growing. Cyber attacks increased some 24% in the first half of 2012 over the same period the previous year, according to a new report from security firm Symantec. Reason? “Any time the economy goes down, white collar crime goes up,” says Bill McDermott, CEO of Atlanta-based McDermott Financial Solutions. “We’re seeing an increase in corporate account takeovers. It’s a huge problem.”

Banks commonly refuse to indemnify companies for funds stolen from commercial accounts. “A lot of people have the misunderstanding that banks offer to business accounts the protection offered to consumers,” says McDermott. “In fact, banks will not hold business account holders harmless for losses from cyber-fraud.”

CHICAGO — There was a time not so long ago when decision-making for savers and investors was a relatively easy task.

The ultra-conservative investor who wanted to minimize risk and was satisfied with giving up potentially large gains could stick with bank CDs or money market accounts, enjoying a steady income stream while sleeping soundly at night. The younger investor with a longer window of opportunity could invest heavily in equities, relying on historical averages to assure solid growth.

It’s not that easy these days.

The investing environment underwent gut-wrenching changes with the 2008 market meltdown. The resulting market volatility introduced emotional considerations that have benefited some and caused crippling financial pain for others.

ARDMORE, Pa. — Things go a lot easier when potential lenders, suppliers and partners can decide to take a risk based on a dry cleaning business’ credit history and capability of repaying obligations. With strong business credit, a business can borrow at a lower cost, with more favorable terms. In fact, many small dry cleaners with good business credit have discovered it is possible get loans without an onerous and often embarassing personal guarantee.

Obviously, business credit is quite difficult to get. For any small dry cleaning business owner, navigating the credit and lending world can feel like a vicious Catch-22. Most commercial banks and traditional lenders are reluctant to loosen their purse strings until would-be borrowers have proven themselves with a strong credit history. But it’s difficult to develop that good record when no one will lend in the first place.

IN THE BEGINNING

When a business issues or extends credit to another business, it’s referred to as “trade” credit. Trade, or business, credit is the single largest source of lending in the world.

WASHINGTON — Cash flow issues continue to plague a significant number of America’s small businesses, according to the results of a new survey by the National Small Business Association (NSBA).

Access to Capital Survey findings show that nearly half (43%) of small-business owners report that they needed funds at one point in the last four years and were unable to find any willing sources.

“Not only have small-business owners been unable to find new credit over the last four years, nearly a third had their existing credit slashed and one in 10 had their loans called in early,” says NSBA President and CEO Todd McCracken.

Among the small-business owners who reported some change to their credit, 60% stated that the reason given was the bank’s internal risk assessment. Fifteen percent said they were given no explanation for changes to their credit.

Only small community banks and credit unions received a majority overall positive rating among small businesses asked to rate various lending institutions.

CHICAGO — If the crazy ups and downs in the stock market these days have you feeling a little dazed, you have lots of company. For many savers and investors, trying to find a safe haven for whatever cash is left in their portfolios has become a top priority. Unfortunately, investing cash these days is no less daunting than investing in the stock market.

If you have a brokerage account, there’s a good chance that your broker has recommended that any cash in your account be swept automatically into a money market fund. These so-called “sweep” accounts currently hold billions of dollars — money that is probably doing a lot more good for the brokerage firms than for their customers. Money market funds, on average are paying about 0.03% interest (that’s three one-hundredths of 1% — a paltry $30 interest per year for every $100,000).

Most banks offer money market deposit accounts, which are similar to money market funds but differ in several important ways.

Provisions in the Small Business Jobs Act may soon ease the Great Recession’s prolonged credit crunch.

HUNT VALLEY, Md. — Butler Capital announced that BankUnited, a large regional bank based in Florida, has acquired its small-business lending operations. The lending operations will become a subsidiary of BankUnited known as United Capital Business Lending (UCBL).

“UCBL will build upon Butler Capital’s national lending platform, as well as the experience and expertise of the Butler Capital staff,” says Larry Butler, who will continue as Butler Capital’s CEO and serve as a consultant to UCBL.

MCLEAN, Va. — Capital One Small Business Banking released the results of its first-quarter 2010 Small Business Barometer, a quarterly survey of small businesses’ current financial condition and business projections for the next six months. Almost 80% of those surveyed believe that economic conditions are either improving or holding steady. In addition, 39% report that their company’s financial situation is better than it was last year — up 11% from last quarter — while 38% say their finances remained stable.

WASHINGTON — U.S. banks seem to be starting to ease requirements for small-business lending, although credit remains abnormally tight, according to Federal Reserve Governor Elizabeth Duke.

“Bank attitudes toward lending, including small-business lending, may be shifting,” she said in testimony before the House Committee on Financial Services and Committee on Small Business.

WASHINGTON — President Barack Obama launched initiatives last week designed to aid small businesses in an aggressive push to get banks to lend more to struggling entrepreneurs.

Talk about last-minute changes to the tax code! The primary purpose of the Emergency Economic Stabilization Act of 2008 (EESA) is to solve the credit crunch in the financial markets, but it’s also one of the biggest tax bills in recent years.

WASHINGTON — Small business gave its support to a $700 billion bailout plan in advance of the vote last week that pushed the bill through Congress. President Bush signed the bill into law on Friday to help relieve a growing credit crisis that threatens the nation’s banking system.