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April 3, 2013
Fending Off Hack Attacks (Conclusion)

CHICAGO — Banks commonly refuse to indemnify companies for funds stolen from commercial accounts

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.”

April 2, 2013
Fending Off Hack Attacks (Part 1)

CHICAGO — Banks commonly refuse to indemnify companies for funds stolen from commercial accounts

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.”

May 17, 2012
The Sun’ll Come Out…

LOS ANGELES — Many beginning to see businesses return to better times

LOS ANGELES — Every four years around this time, the same question comes up: are you better off today than you were four years ago?

Well, let me be frank. The last four years have been difficult. I was 51, now I’m 55. I don’t know anyone who doesn’t like 51 better. Then, I had black hair; now, I’m losing the black and losing the hair.

And it was exactly four years ago this month that I decided to leave my lucrative career as a personal manager for actors, writers, comedians and directors to join my wife in manufacturing and distributing reusable drycleaning garment bags.

Things went pretty much haywire right from the start: we made our first sale about the exact same time as the banking, housing and financial bubbles burst. The loans we were counting on to grow our business were now unattainable: banks simply stopped lending.

January 5, 2012
Where to Find a Safe Haven

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.

December 8, 2011
The Numbers: Jobs Growth Expectations, Mortgage Delinquencies, and Economic Policies

CHICAGO — A new report from NYSE Euronext provides some economic encouragement. Top executives for 62% of public companies and 71% of private firms expect to expand their businesses and add jobs in 2012, a move counter to growing uncertainty of the economy and political instability. This is the first report from NYSE Euronext to include private or emerging companies and MBA students that the NYSE dubs “aspiring corporate leaders.”

On the other end of the spectrum, the congressional so-called Super Committee failed to come to an agreement on a deficit reduction plan, leading to a drop on the stock market and continued debate as to the cause of the committee’s inaction. The main stumbling block appeared to be the continued tax cuts, rather than higher tax rates, for the upper tier of income earners.

November 17, 2010
Collect Every Penny You’re Owed

CHICAGO — Drycleaning is usually a cash business. But if you offer commercial or retail accounts, you’re also in the collections business. By my estimate, about half of all operators do some of this non-cash volume, on account.

On a recent plant visit, I got an earful about problems collecting money in a depressed economy. “My accounts are such pains,” the operator said. “They just don’t pay until you threaten to cut them off.

June 7, 2010
Capital One Releases Small-Business Barometer Results

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.

October 7, 2008
Small Business Lends Support to Bailout

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.