When it comes to credit assessments there is always a challenge. You need to determine how you collect your data and where you collect it from.  Is the data you are using accurate? How to quantify how much of a risk to take? Are you helping the company meet its sales and profit requirements?

With every credit transaction there is a risk of non-payment, a delay in your cash flow, perceived extra costs to your business of carrying out assessments, the potential legal implications (depending on the length and type of credit granted) and a risk that outside factors can hinder the process, such as the economic environment.

If you are unsure when granting credit just remember Sesame Street (for those that have never seen it, shame on you!)….. “Today’s program was sponsored by the letter…. C”

C is for:  (listed in alphabetical order as the argument of which is more important is one for your individual company)

• Capacity
• Capital
• Character
• Collateral
• Conditions

C is also for:

• Country
• Culture
• Currency

Capacity;

• Do they have the ability to pay their bills as and when they fall due for payment?
• What current assets do they have available?
• What does their cash flow statement look like? And compared to last year?

Capital:

• What are their business trends?
• What is the equity of net worth situation within then company?
• What fixed assets do they have available and are there already any charges against them?

Character:

• What form of business is it? (limited company, sole trader or public etc)
• What history do they have? (What experience or abilities do the key personnel have?)
• What is their payment history like?
• What morals do they as a company or the owner have? (i.e. what would their willingness to pay be like)
• Any previous bankruptcies, litigations or   CCJ’s?

Collateral:

• What assets do they have that could easily be turned into cash?
• What guarantees could you get and would they be worth anything? (parent or personal guarantee etc)

Conditions:

• Are they impacted by any local or national economic conditions? (it is harsh but are they impacted by any local conditions such as serious weather that impacts trading)
• Are they impacted by any industry specific conditions? (i.e. has a major player in the industry recently been in trouble such as the auto industry and is there a knock on impact)
• What terms do they currently buy and sell on?
• Are they a seasonal business?
• What operational changes have they gone through that could have an impact? (such as key personnel changes or mergers and acquisitions)
• What is the status of their property? (do they own or rent)

Even if you only sell within your domestic market your customer may not, do you know this? If they do or if you are selling out of your domestic market then;

Country:

• Where do they or you sell to?
• What is the economic situation there?
• Do you know what the local political situation is?
• Do you know the local rules and regulations?
• Are your terms and conditions enforceable there? Such as Retention of Title.
• Do you or they have the ability to communication correctly?

Culture:

Not all countries and cultures are the same and what is good in one will not work in another. Do you know if you should exchange business cards?  Do you know if it is polite to accept or refuse an invitation for a drink?  Do you know how business deals are signed?  It would be worth taking some time to research the local market and customs.

A couple of examples would be payment terms and negotiations; In the UK, 30 days are considered standard. In Italy, the normal is more like 60-90 days.  In Israel a payment received 90 days past its due date is common practice and a negotiation does not stop just because a contract has been signed.

Currency:

If dealing in foreign currencies or with a customer who is heavily dependent on foreign currencies you need to keep a close eye on any fluctuations.  You also need to be aware of any local restrictions on how and how much currency can leave a country.

Now obviously not all of these C’s are practical for every business or business deal but should serve as a reminder of a need to be vigilant and always ensure you are securing you company’s future.

You should always try to build up an understanding of every one of your customers and knowing some of all of these things helps to fill any gaps left by a standard credit assessment as pulled from a credit agency.  It could also help you decide on a specific collections model for one or a section of your customers who may need more attention than some others.

As your relationship with your customer develops and you have more information to being into the mix your ongoing reviews should become a simple process and the decision on how much credit to extend or the terms to agree should become a routine

C is for… Chance:

Do not take chances when it comes to credit management and do not be lulled into a false sense of security if things have been running well for a period of time. You may want to be wary of the following:

• Having a credit policy is great and a must, but do not thing that by writing one the job is done. You need to refresh it on an ongoing basis to ensure it captures all the current information required.
• Do not think because you have installed the latest system that all is done. You should not become reliant on technology you do not understand. “The computer says no” is not the answer. Do you know why it said yes or no?  Software is good but unless based around a score card that you yourself wrote and update on a regular basis it is no more than a generalisation.  If you are doing business in a foreign country remember even Dun & Bradstreet maybe using a 2 man company to give them local assessment information and therefore is not more in depth that you can get (it has happened in the past!)
• Do not get cocky! Your credit application process may be working perfectly and may have done so for the past 100 customers, but it only has to go wrong one and you or your company is on your knees. Treat every application as though it is your first and be vigilant.
• If you run a process of “they don’t pay, we don’t ship” great, you can keep any potential losses down to a minimum, however, can you keep customer who are profitable but a little in paying happy?  If you know the C’s, you may know that they are a good customer but obviously having a one-off problem and therefore it is worth shipping to them again.
• If you use credit insurance and believe that you have nothing to worry about because if anything happens you are covered then good on you. However, don’t become lazy or sloppy and think you do not have to worry about anything else. What happens if your insurer pulls a credit line/limit, can you still take a risk? Do you know the customer well enough to know if you are important to them?

Credit management is about constant improvement of processes and skills. There are some things you can do to keep yourself in the game;

• All of the above has been about knowing your customer. However, just as importantly you need to know your own company inside out.  What makes them tick? Are they a sales orientated company? Can you afford to turn away sales? What is the margin on each product line? What market share do you have? Are you running any promotions that you need to be aware of? Do you need to increase or decrease risk exposure for a given time frame?
• Network as often as possible. Speak to your competitors and other local businesses, what do they offer?
• Learn, learn and learn. Never stop. The world does not stop turning and the credit game does not stop evolving.
• If something goes wrong, it was not the laptops fault! Systems do not create problems, they only magnify them. A good process is a great process with the right system. A bad process is a terrible one with the wrong system.
• Common Sense!!!
• Be adaptable. Be willing to bend. Not everything is a yes or no answer. How about a “we may not be able to do that, but we could do…..” response. Keep the deal alive.
• Always communicate openly and honestly. It saves time and it could save your company. If you believe company X is stalling on a payment ask them why they cannot pay you to terms. Tell them you like to work with partners and partners talk to each other. People will let down suppliers easier than they let down partners!
• Always use your initiative. Do not wait for the paperwork to hit your desk saying a customer is in trouble. Know what is going on and deal with it.

These are just some items to consider and I wish everyone the best of luck with their credit management function.

Credit-Manager.Net is available to advise you on any credit management issue you may be experiencing;

• Pro-active credit control services from just £40 per month.
• Letter services
• No win – No fee debt collection services with commission starting at just 10% of cash collected.
• Credit assessment services from just £12, including professional advice.

Email: info@creditmandotnet.co.uk or telephone 01753 415 160 to discuss your requirements.

Quote 2209 via email before 31-January-2010 and any debt placed on our debt collection service will only be commissioned at 8%

Quote 0701 via email before 31-January-2010 and any monthly credit control services contract will also include FREE consulting on ANY credit management subject for the length of the contract.

By:  LoanMan

It’s hard to get a small business loan with bad credit. Options are limited, and borrowing is more expensive. Don’t give up though.  Read this article and pick up some valuable pointers you may not have thought about. If you’re trying to get a loan with bad credit, do some homework before you get a loan. It’s easy to get into expensive traps, and there are a few things you can do to improve your chances.

Do you really have bad credit?

Your credit may not be as bad as you think. If you’ve been told that your credit ruined your chances of getting a loan, make sure it’s true. There may be errors on your credit report. Once those are fixed, things may look very different to lenders. Before you get too worked up, find out exactly what your credit score is. You may be surprised to learn that what you’ve heard about bad credit scores is not entirely true. Very few businesses have perfect credit scores. When you dispute charges on a vendor bill, and it goes to collection, you have some recourse to work with the creditor and have the collection taken off your record.  If your credit is truly bad, here are a few ways to try getting a bad credit small business loan.

Visit Credit Unions

Credit unions may be more willing to offer you a loan with bad credit. They’re more willing to look at you personally – as opposed to just looking at a credit score and the loan application. If you sit across the desk from a human being, you’re more likely to get a loan with bad credit.You must have a sound business plan, containing a section on how you will improve your credit. Often, the loan committee for a credit union is made up of local business people, along with credit union officers. That is much better than having your loan application shipped off to a branch office where no one knows you.

Try Peer to Peer Lending

Peer to peer lending services are a good option for getting a loan with bad credit. Instead of borrowing from banks (with rigid rules and higher overhead costs), you can borrow from individuals. These services are available on line. They may be more sympathetic, but they’re not looking to lose their money. The same rules apply to peer to peer lending. You must have a sound business plan, containing a section on how you will improve your credit. The advantage to peer to peer lending is that, often your peers are in the same type of business.  They know the market and your type of business. Be prepared to pay more interest, though, and possibly a small percentage of your company.

Tap Friends & Family

Most peer to peer lending sites allow you to borrow from strangers. However, friends and family may be your only option for finding a loan with bad credit. They know you, and may be even more willing to take a chance. If you borrow from friends and family, do it properly so everybody’s protected. Have an attorney draw up documents explaining terms of the loan, interest rate, default provisions and other items that the attorney feels are important.  Even though this is family, treat it like a business deal…and pay it back!

Use Family Collateral

If friends and family can’t lend to you, they might still be able to help. You may qualify for a loan with bad credit as long as you have a co-signer. If you’re having trouble getting a loan with bad credit, you family may need to put up collateral. By pledging something of value, your lender knows you and your family are serious and the lender has a better chance of collecting some money.

The future is digital, without a doubt.

 

Dillinger è morto. Anzi, no. Dillinger è vivo. Ma è meglio dire vivido. È questo l’aggettivo che più si addice all’immagine che Michael Mann confeziona per il suo Nemico pubblico, ritratto di un uomo, il rapinatore gentiluomo John Dillinger (Johnny Depp) e di un’epoca, gli anni Trenta della Grande Depressione post 1929. Le immagini che raccontano questa storia così antica sono in realtà modernissime, nitide. Vivide, appunto. Il film è girato in digitale, un mezzo che nessun altro oggi sa usare come Michael Mann, che di questa tecnica può essere considerato il precursore, e uno dei più agguerriti sostenitori. Uno dei maestri, insomma.

Michael Mann per Nemico pubblico ha cercato la realtà. Ha voluto fare un film ambientato negli anni Trenta che non sembrasse un film d’epoca, senza filtri nostalgici. Come se ci si svegliasse e si trovasse lì, in quel tempo. Il digitale in Alta Definizione è uno dei fattori che hanno portato il film in questa direzione. Mann e il suo operatore Dante Spinotti, hanno usato vari tipi di telecamere HD per quasi tutte le scene: quattro nuove HDC-F23 della Sony e la XDCAM-EX1s. Le riprese sono una combinazione di macchina a mano, addosso ai volti degli attori, e di riprese in campo lungo sull’intera scena, realizzate contemporaneamente. La sensazione è quella di vedere quello che succede in tempo reale, un senso di immediatezza. Come se, pur se l’azione si svolge in un’epoca lontana, stessimo assistendo a un film verità. In questo senso sono state fatte le scelte per illuminare le scene: non dovevano essere illuminati solo gli attori, ma tutto l’ambiente circostante. “Abbiamo sempre tenuto a mente il realismo estremo della situazione” ha dichiarato Dante Spinotti. “Volevamo rappresentare, in modo aggressivo e vero, che cosa era quel tempo e che cos’è la scena. Così abbiamo illuminato tutta la scena e raramente solo l’inquadratura. Gli attori devono sembrare giusti, perfetti quando finiscono in primo piano e questo è stato girato con una telecamera per i primi piani, mentre un’altra riprende i primi piani opposti di altri attori o attrici”. Il risultato lascia sorpresi: è forse la prima volta che un ritratto d’epoca viene proposto con un’immagine così moderna e nitida, perfettamente definita, invece che con la classica fotografia più sgranata che siamo soliti associare alla patina d’epoca. L’immagine di Nemico pubblico è antica e moderna allo stesso tempo.

L’altra “sfida” di Mann per avvicinarsi al maggior grado possibile di realismo è stato girare nel maggior numero di luoghi reali possibile. Molti dei luoghi visitati da John Dillinger esistono ancora oggi. Quando vediamo il carcere di Lake County a Crown Point, nell’Indiana, o la pensione Little Bohemia a Manitowish Waters, in Wisconsin, vediamo i veri luoghi nei quali è stato Dillinger, e che sono stati teatro della sua sfida alla legalità. Anche il fatale cinema Biograph in Lincoln Avenue, di Chicago, che ha visto la sua fine, dopo che aveva visto Manhattan Melodrama (Le due strade), è quello vero. Il carcere  di Lake County, dove Dillinger fuggì con l’auto dello sceriffo, è dunque quello vero, non è stato inventato niente. Evidentemente non poteva essere nelle condizioni in cui si trovava negli anni Trenta, ma è stato ricostruito accuratamente in base alle foto scattate all’epoca (mentre per le celle, di cui non c’erano foto, si è lavorato d’immaginazione). Nella pensione Little Bohemia gli agenti dell’FBI circondarono Dillinger ma furono beffati dalla sua fuga. La pensione è un luogo turistico e ora è diventata un ristorante. È stato fatto un lavoro particolare per riportarle a quell’epoca, piantando degli arbusti sul terreno, e lavorando sulle camere. Che però sono proprio quelle in cui dormirono i gangster. “Come si può immaginare, per Johnny Depp c’è una sorta di magia nello sdraiarsi sul letto in cui aveva davvero dormito Dillinger” ha dichiarato Michael Mann. Quando mette la mano e apre la porta, è la stessa maniglia sulla quale Dillinger aveva messo la sua mano”. Little Bohemia porta ancora oggi i segni di quella giornata, come i buchi delle pallottole, le finestre rotte e parte del bagaglio che la gang lasciò fuggendo. Il cinema Biograph, davanti al quale Dillinger viene tradito e ucciso, aveva perso le pensiline per le insegne dei film, ma Mann lo ha fatto restaurare.

Cogliere la realtà circostante, l’anima di un luogo, le luci della città, e con esse la sua essenza, è stata la chiave espressiva degli ultimi lavori di Mann, Collateral e Miami Vice, con cui Nemico pubblico costituisce un’ideale trilogia, e di cui è un ideale prequel. Il rapporto tra la città e il male che vive al suo interno, e da cui è inscindibile, è alla base di tutti e tre i film. E la chiave per rendere tutto questo in immagini è proprio il digitale. Proprio in questo modo, l’unico modo possibile, in Collateral Mann era riuscito a cogliere i colori della notte e le vere luci di Los Angeles: le luci al neon, in primo piano, sfocate, o riflesse su vetri e superfici metalliche in affascinanti riverberi, annegate nel blu notte della città. Los Angeles è una delle protagonista di Collateral, come Chicago è un’assoluta protagonista di Nemico pubblico. E come Miami è protagonista di Miami Vice, discesa agli inferi nelle tentazioni di una città tentacolare, peccaminosa, sensuale e pericolosa. Anche qui i colori della notte sono colti alla perfezione dalla macchina da presa digitale. Pensiamo alla prima scena, al suono di Linkin Park e Jay-Z, nella discoteca, che ci fa capire subito la cifra stilistica del film. Anche in Miami Vice Mann ha scelto la direzione del realismo, operando un taglio netto con l’edonismo pop della serie originale, e cercando di trasmettere le vere azioni della polizia, con cui i protagonisti si sono addestrati prima di girare. Los Angeles, Miami, Chicago. Tre città, le loro luci, la loro aria, i loro uomini. Sempre troppo piccoli di fronte a una città che finisce per schiacciarli. Anche questo è Michael Mann.  

Marketing is the communication and representation of your brand, company, image, etc to your customers and general public.  What employees in your business are doing the marketing?  And  what controls do you have in place?

The companies we work with are small to mid-size businesses that may or may not have a marketing director.  Regardless of having a marketing director many of the people in the organization are facilitating the marketing.  For example: one business we work for has 9 different people in the company running the marketing in different departments and there are 9 different messages, different images, no consistency in brand management, and very little communication between these departments.  This is a major issue because it is confusing to the customers.  It is very important to protect the brand of a business and put in place controls to ensure there is oversight as to what can and can not be done.

There are many marketing channels that businesses utilize to get the word out:  Social media, events, direct mail, cross promotions, website, media, partnerships, collateral, etc.  All these initiatives need to have final approval and sign off by the most experiences marketing person to ensure controls and consistency of image and message.  If 9 people are running marketing in their silos without oversight then your brand is getting beat up!  All 9 of those people should have to seek final approval to print, publish, distribute, etc any and all marketing material and projects.

How many people can run marketing initiatives in your business without controls in place?

Why Occupation?

Why occupation? Why barricades? Why would an emancipatory movement, one which seeks to unchain people from debt and compulsory labor, chain the doors of a building? Why would a group of people who deplore a university increasingly barricaded against would-be entrants itself erect barricades? This is the paradox: the space of UC Berkeley, open at multiple points, traversed by flows of students and teachers and workers, is open in appearance only. At root, as a social form, it is closed: closed to the majority of young people in this country by merit of the logic of class and race and citizenship; closed to the underpaid workers who enter only to clean the floors or serve meals in the dining commons; closed, as politics, to those who question its exclusions or answer with more than idle protest.

To occupy a building, to lock it down against the police, is therefore to subtract ourselves, as much as possible, from the protocols and rules and property relations which govern us, which determine who goes where, and when, and how. To close it down means to open it up – to annul its administration by a cruel and indifferent set of powers, in order that those of us inside (and those who join us) can determine, freely and of our own volition, how and for whom it is to be used. The university is already occupied—occupied by capital and the state and its autocratic regime of “emergency powers.” Of course, taking over a building is simply the first step, since our real target is not this or that edifice but a system of social relations. If possible, once this space has been fully emancipated, once we successfully defend ourselves against the police and administrators who themselves defend, mercilessly, the inegalitarian protocols of the university, the rule of the budget and its calculated exclusions, then we can open the doors to all who wish to join us, we can come and go freely and let others take our place in determining how the space is used. But we stand no chance of doing so under police watch, having sat down in the building with the doors open, ready to get dragged out five or six hours or a day later. Once our numbers are sufficient to hold a space indefinitely, then we can dispense with locks.

Our goal is straightforward: to broadcast from this space the simple truth that, yes, it is possible to take what was never yours, yes, it is possible for workers to take over their workplaces in the face of mass layoffs; for communities where two-thirds of the houses stand empty, foreclosed by banks swollen with government largesse, to take over those houses and give them to all who need a place to live. It is not just possible; as the current arrangement of things becomes evermore incapable of providing for us, it is necessary. We are guided by a simple maxim: omnia sunt communia, everything belongs to everybody, as a famous heretic once said. This is the only property of things which we respect.

If possible, we will use this space as a staging ground for the generalization of this principle, here and elsewhere, a staging ground for the occupation of another building, and another, and another, for the continuation of the strike and its extension beyond the university. Then we can decide not what we want but what we will do. If we fail this time, if we fall short, so be it. The call will remain.

Why Now?

It is true that the upcoming vote at the Regents meeting – an almost certain ratification of the 32% fee increase proposed by Mark Yudof and the UC Office of the President – is merely the latest in a long litany of insults and injuries. But it is also the moment where the truth of the UC is undeniable, where its ostensible difference from the violence of the larger society vanishes. The hijacking of student fee money for construction bonds tells, in capsule form, the larger story of our enchainment to debt: credit card and mortgage debt, student loans we will spend our lifetime paying off.

We want students to see this increase for what it is: a form of exploitation, a pay cut from future wages at a time when widespread unemployment already puts those wages in jeopardy. Let’s be honest: aside from all its decorations, university study is a form of job training. We pay now in order to attain a better wage in the future. It is an investment. But the crisis of the university and the crisis of employment means that, for many, the amount they pay for a degree will far exceed the benefits accrued. We could, at the very least, conclude that it is a bad investment.

But stepping back for a minute, what would it mean to restore the public university to its former glory as an engine of class mobility, as a sound investment in the future? It would mean the restoration of a system which, while ensuring that some individuals, here and there, ascend the rungs, also ensures that the rungs themselves remain immovable. The best we can hope for is that different people will get fucked next time. There is no escape from this fact. The university can’t be made accessible to all without the absolute devaluation of a university degree. To save the university means to save poverty, pure and simple. It means to save a system in which some people study and some people clean the floors. . . The same goes for the entirety of the education system – there is no way to reduce the inequality in K-12 education without a total transformation of society. The schools are designed to produce this inequality. If they were equally funded and equally administered and we still lived in a class society, then the education received there would be meaningless as a claim on future livelihood. There has to be an underclass. This is the truth of education. And it is the one thing we are supposed to never learn in school, the one thing which, despite all the gestures of solidarity, divides the campus student movement from the most exploited university workers.

This is why we must seize these spaces – spaces that were never ours – and put them to new uses. If there is any value to the university it is its centrality as a point of transmission, an instrument of contagion, in which struggle is broadcast, amplified, and communicated to the society at large. If we achieve this or that reform along the way – save wages and salaries, lower fees – this will make us happy. We understand how meaningful such achievements are for the people who work and study here. But we also understand how meaningless they are for the society at large. Sometimes saving the university is a stop on the way to destroying it. There is no insoluble contradiction, then, between us and the larger movement. We are one face of it.

Why No Demands?

First, because anything we might win now would be too insignificant. Countless times past student struggles have worked months and years – striking and occupying buildings and mobilizing thousands upon thousands of people – only to win back half of what they had already lost, a half that was again taken away one or two years later. But in any case, we are as yet far too small to win anything on a scale remotely close to the mildest of demands – a reduction or freeze of student fees, an end to the layoffs and furloughs. Even these demands would mean only a return to the status quo of last year or the year before – inadequate by any but the most cowardly measure. If we set our horizons higher – free education, a maximum salary differential of, for instance, 3 or 5, a university managed by faculty and students and workers – then we must realize, immediately, that nothing short of full-scale insurrection could ever achieve this. And if we were strong enough to bring the existing order tumbling down around us, why would we stop short and settle for the foregoing list?

The process of negotiation – the settlement of demands – is a dangerous one for a movement. It often signals its death. We have no illusions about this. We understand that, if we were to become powerful enough, and if we remained steadfast in our refusal of all negotiation or settlement, someone, some group, would step in and begin negotiating for us. There is no avoiding that. Once we become a threat, then the bargaining will begin. If the first or second set of demands seems a worthy terminus, then we have a piece of advice. Become a threat first. You just might win something. But you’ll never become a threat by determining to fight over the crumbs.

The whole theory of demands as it currently exists seems to rest upon a fundamental misconception. The demand is never really addressed to the existing powers. They can’t hear us – everyone knows that. And, in any case, they’ve never responded to petitions or requests, only force. The real addressee of the demand is on our side, not theirs. A demand defines those who utter it; it sets the limits of the struggle, determining who is and who is not in solidarity with a given fight. And such demands are, invariably, bound to exclude some party or group. We recognize, of course, that they can be useful in this respect – useful as a means to constitute and unify body in struggle, but this body can only be partial, fragmentary, divided from further support. Some groups attempt to get around this problem by making their demands an eclectic laundry-list, but such solutions always end in absurdity. This is why we make no demands. Because we want to be in solidarity with all who are oppressed and exploited. We will not say who they are in advance. They will define themselves by rising up and standing with us.

Why This Building?

Well, it’s perfect, isn’t it? As the UC levies students with ever-steeper fees and drives workers further into poverty in order to continue with its inglorious expansion – football stadiums, high-tech research centers, new administrative buildings, $1.35 billion in new construction during a supposed crisis – we can see no better target than one of the nerve centers of this strategy of accumulation, one of the routing points of this logic which privileges buildings over people. Capital Projects indeed. Even if the university is not, in a strict sense, profit-seeking like a capitalist corporation, the leveraged transformation of ever-greater levels of personal debt into new buildings, the congealation of our living activity into dead matter designed to react back upon us, to become the newest labyrinth of our unfreedom, is nothing less than a little blazon of the project of capital itself: capital which is nothing if it is not growth, expansion, multiplication, investment, and which continues along this path without the slightest regard for human needs. This is no less true of the UC, which will grow and build at any cost. Any growth is good growth, as the front page of the Wall Street Journal tells us. Gross Domestic Product knows no qualities. A pile of guns is the same, to it, as a pile of anti-malarial drugs. It is a system which must grow or die, which requires more and more resources and energy, more and more workers, regardless of what this work is doing. This is why no patchwork of reforms and technology and consumer morality could ever address the growing ecological crisis – a crisis, at base, of a system which knows no limits. And so we take our stand here, at the Office of Sustainability, Real Estate Services, Capital Projects. We will not create more of what people do not need. Not today. Here, in this building which coordinates the acquisition of property and the optimization of real estate assets, we refuse to be subordinate to the logic of accumulation. And we call upon all of those in solidarity with us to take over other spaces on campus, in their communities, to take over their workplaces, to refuse the rule of things, the rule of dead matter. It is easy enough. Countless buildings lie ready for the taking. We can, all together, chant Whose university? Our university! And we can really mean it.

In William Dudley’s very informative speech on the what and why of the investment bank failures, there is a very interesting footnote:

One final factor that was important in exacerbating the funding crises was the novation of over-the-counter (OTC) derivative exposures away from a troubled dealer. In a novation, a customer asks a different dealer to stand in between the customer and the distressed dealer. This process results in the outflow of cash collateral from the distressed dealer. The novation of OTC derivatives was an important factor behind the liquidity crises at both Bear Stearns and Lehman Brothers.

Dudley cites three sources of the failure:
(i)  withdrawal of repo credit backed by illiquid assets
(ii) loss of primary dealer accounts, and
(iii) drain on cash collateral via novation of OTC derivatives

Given the aggressive action in the credit default swap (CDS) market that was demanded by the NYFed after the Bear Stearns failure, I think that it is safe to conclude that the novation of CDS was an important source of cash outflow for Bear Stearns.  This is worth noting because one periodically runs into claims by financial market participants that CDS markets operated effectively throughout the crisis and that CDS are being unfairly targeted by people who don’t understand them.

I suspect that when the full history of the Bear Stearns collapse is written, CDS will play a non-trivial role in the story.

There are times when you have to apply for a personal loan, especially when you’re doing bad credit repair.  But you also have to face some several difficulties in getting a personal loan in the presence of credit problems.

If you have the misfortune of having a dissatisfactory credit score, you might want to do some credit restoration. Your first step would be is to review your credit report and do some personal credit investigation and analysis.  See if there are any inaccuracies in your credit report and dispute them as soon as you can.  This will alert credit companies that you are doing something to improve your credit rating and not just sitting back and let the credit problems fix themselves.  If you’re having a hard time with credit repair self-help, you can employ the services of credit restoration companies to do the job for you.

Personal loans are different from other loans such as home or car loan.  It is an unsecured credit venture in the part of the credit company for you are not offering any personal property as collateral to guarantee your payment.  When you apply for a personal loan, the lending officer must do some background check to see if you qualify.  You will be asked to supply your full name, Social Security Number, and other important financial information such as source of income.  It would be a plus for you if you have had the same job for a several years.  Changing jobs every year or so can be a downfall for your loan approval.  Once approved, the money is deposited in your bank account within 24 hours.  The money is now at your disposal and you can use it as you please.  The downside is you cannot loan for more than $1,500.

When borrowing money in the face of bad credit, make sure that you only borrow the smallest amount of what you need.  Make it a point to pay monthly payments higher than minimum amount due to prevent accumulation of interest and to prevent your credit score from decreasing.

You own the collateral, assets that are valuable as they make you money and are the heart of your business. It may be collateral for your loan, but it remains yours. Therefore you must exercise complete control over them for as long as possible. Of course. So only you can sell an asset, or all your assets, or your entire business as a going concern…NOT the bank.

This is an important fact. The only way the bank can take over control of your assets, hold title, and thus be able to dispose of them as they choose, is either with your permission or through foreclosure, a process controlled by each state differently. Thus any request or demand that you do anything with your assets, such as sell them, is a breach of their fiduciary duty to you the borrower and should not be tolerated or adhered to in anyway, unless the borrower believe it is in his/her own best interest.

The bank has little opportunity to market or even list property for sale but always opts for the liquidation auction as it is deemed an adequate effort to satisfy their fiduciary duty, even if it brings in the lowest possible price, with the most expense. Its as quick as possible, final and is defensible.

Banks do not want to foreclose and take possession of assets. Understanding this is a negotiation advantage. You control the assets until they foreclose.

Last night, I got a call from a dude in jail.  This was a new name, he has around $8k in charges.  Like most everyone that calls me from jail, I know that I’m not his first choice and the he is shopping around.  I told him the best I could do was 50% up front and payments, but that I would need collateral on the $8k. This guy must not have heard me right because he was all excited and was like “My brother has the collateral, call him and he’ll get me out!”.  I called and left a message for the brother and didn’t hear anything.

Tonight, I get a phone call from the guy in jail.  I ignore it.  I get another one.  I ignore it.  He calls over and over and over again.  Finally, he switches tactics, instead of giving his name, he says “call my brother” “He has the collateral”  ”his number is xxx-xxxx”.  After that one, I call the brother.  The brother had just gotten home from visitation.  He tells me that the dude in jail told him I said I would let him out for $100 + his car title as collateral.

I explained that it isn’t the case.  I was honest with the brother and he had lots of questions.  I answered them and let him talk a bit.  I learned quite a bit more about he guy in jail, his previous record and personal problems.  I told the brother I couldn’t compete on the price other bondsman were giving, but I could offer better service.  I could try to help the guy in jail get into substance abuse programs, etc.  This struck a strong cord with the brother.

It took nearly an hour, but by the end of the conversation, I would say that there is around a 50% chance that I might actually see this business (which is worth approximately $800) if and when the brother gets the down payment money together.

Otherwise, I just wasted an hour of my life.

-bbc

I hear this ‘plan’ more often then I choose to admit. ‘I am just going to wait and see what happens…’

And this is a plan? It’s an act of personal financial suicide. It’s no plan, it’s a decision to allow others to control your destiny. It’s avoidance at its best. It is self destruction.

So why do you do this I ask? Never an answer other then wanting to wait and see what happens, It is as if you are watching a tv show and want to see the ending…only his is not a tv show, it is your life.

So you never have to wait and see what will happen, here is the script, exactly what will happen if you have an SBA guaranteed loan and you are in default.

After 90 days, could be allot sooner or allot later, depends upon the bank, but 90 days is the typical benchmark, the bank will photo the collateral, arrange for their appraisal and then commence foreclosure. They will not negotiate at all, and upon foreclosure they will liquidate by auction, irrespective of how little they may get and how backwards this may seem, it is the rule of the SBA and if they fail to ‘exhaust their legal remedies’, they may lose their SBA guaranty, a very valuable payoff. You can bet they will follow through and exhaust their legal remedies. Then the SBA will pursue you through the Department of Justice to collect on your guaranty. These Assistant US Attorneys who work for the Dept. of Justice  are bad boys…and bad girls. They are very hard to get to compromise, although we handle this issue repeatedly and successfully, it is a street fight.

Now you know exactly what to expect.

Non SBA guaranteed loans, traditional secured bank loans, follow a similar path but may be easier to deal with and may offer more flexibility, but in the end the results will be the same. Some banks are tougher some are easier but they all do the same thing…foreclose and liquidate and then pursue personal guaranties.

What to do? Be pro-active, get in front of the train and stop it.

There are few  paths to take.

If SBA guaranteed, you have three options:

1.Pay, of course you can’t so this fails.

2. File bankruptcy, this fails as you lose your business, the loan stays attached to your home or you may even lose your home…not a good result.

3. Best, call us we have a plan that does work, keeping your business alive and stripping the debt of it as well as reducing the personal guaranty liability to pennies on the dollar. This works.

If a traditional  secured bank loan, you have one other option, you can enter into a workout plan that modifies your loan, this may provide some relief but the not enough to save the day.

The only real answer is debt reduction, and that is what our strategy provides with far less loss.

There it is, the entire script, with endings to choose from, You do not have to wait and see, now you know.

Call us we can help.

Call 413-584-2581 Norm will arrange a no obligation teleconference for us to discuss your issues and provide you with a plan.

Thumbs up to the designer for incorporating an Imac.

It’s important to remember that a consumer continues to “experience” your brand after purchase.

A solid example: This letter came with a recently-purchased id tag for my two dogs.

Kudos to Red Dingo for going the extra mile.  For their creativity, I’ll go back to check out their products next time I need something for my beloved pets.

There is one obvious answer, after foreclosure. Until that moment the borrower has title and the bank cannot sell or liquidate anything, the borrower is in total control. Almost true, but not quite.

The moment in time that the owner gives up, decides to shut is doors, close down, the liquidation of collateral becomes he property of the bank.

In other words, the cash from the collection of your accounts receivable, as received, belongs to the bank. The cash from the sale of  your inventory, when liquidated, becomes the property of the bank, in fact once you decide to close the doors and cease normal operations, the proceeds from a liquidation effort or cash received from the collection of receivables, or the sale of inventory,  becomes the property of the bank. Title may not have passed but once liquidated, the proceeds from liquidating the collateral do become the property of the bank.

This is a very important aspect of our strategy as any attempt to liquidate  collateral to create cash for the borrower must be carefully designed and implemented or you may be violating the banks collateral rights.

Once you have decided to cease normal operations you are then charged with liquidating for the benefit of the bank.

Be careful this is a trap for the unwary and can cause problems if this principle is not respected. You must design your sale of assets or collection of receivables or liquidation of inventory carefully to avoid this being construed as a going out of business sale thus a liquidation for the benefit of the bank, not the owner.

Its amazing really, how many small businesses need marketing support and services.  From where I sit, 99.9% is a good estimation.  There are many outsourcing choices that small businesses can choose from, but not all from a single source.  A typical small business will use one company to manage and maintain their website; another may assist with designing and producing product literature; and yet another can produce or manage their advertising needs.  The list goes on.

With multiple companies producing various marketing pieces and different venues for distribution, one wonders whether or not the messaging, branding and success measurements are consistent among their multiple marketing providers?  As a business owner you should question whether or not it is production taking longer, perhaps costing more, because multiple companies are reinventing the messaging “wheel”.  Are they each applying their individual interpretation of the message that is being promoted. How is consistency being enforced?

These are real concerns when outsourcing to multiple vendors.  Ensuring consistency of your marketing message, even when using more than one source, helps to keep your marketing costs at a minimum.  The next question to ask yourself is how to get that consistency?  How do you manage it?

Promotional Channels
380 Meridian Street, #16
Groton, CT 06340

http://www.promotionalchannels.com

Yesterday, I attended a seminar entitled “Getting Deals Done- New Considerations in the M&A Market” at the Duquesne Club, in Pittsburgh, PA, sponsored by Schneider Downs Corporate Finance.

It was well-worth my time. The panelists effectively talked about the current M&A market, explaining simply accounting and finance concepts that often are esoteric. I was not surprised at how well-run the event was. Schneider Downs’ Tricia Warrick is one of the most impressive corporate finance professionals I know.

The seminar was chock-full of useful information. One slide particularly stands out as being of interest to my business clients and fellow colleagues. What are the 5 considerations a bank typically makes before extending credit?

1. CAPACITY (whether the borrower is operating within his or her abilities and not attempting to accomplish something beyond limitations or means. Look to position in the market, experience in the industry, and track record in business. Cash flow projections/earning potentials are considered).

2. COLLATERAL (the borrower’s ability to guarantee the loan with tangible assets as a secondary source of repayment).

3. CONDITIONS (of the business and industry. What are current market conditions, the nature of your business, the demand for your products and services, inflation rates, interest rates, local and global economic conditions, labor conditions, current business trends related to your business, and current losses that the lender suffers due to credit issues?).

4. CHARACTER (integrity/trustworthiness/credit score and how borrower has handled other financial obligations).

5. CAPITAL (what you have right now that has value –your assets and net worth or equity [assets minus liabilities]. Debt to net worth ratios are considered).

I also found these articles on the web regarding the 5 C’s:

http://www.finweb.com/loans/the-five-cs-of-lending.html

http://www.debtkid.com/banking/5-cs-of-lending

I encourage my clients and colleagues to catch one of Schneider Downs’ informative seminars. The next one is December 2, 2009, at the Sheraton Four Points in Mars, PA from 8 a.m. to 10 a.m. Topic: Executive Roundtable: Valuing Your Company in These Uncertain Times. Also, these seminars are FREE.

http://www.schneiderdowns.com/Seminar_CorpFin09

Voto: 8 (su 10) 

È ancora una volta “la sfida”, come recitava il sottotitolo italiano di Heat, per Michael Mann. E come quasi sempre è accaduto nei suoi film ci sono due “duellanti” pronti a sfidarsi all’ultimo sangue. Johnny Depp e Christian Bale come Al Pacino e Bob De Niro (e forse sono i Pacino e De Niro della loro generazione), come Tom Cruise e Jamie Foxx in Collateral.

Qui Depp e Bale sono rispettivamente John Dillinger, rapinatore di banche la cui fama gli ha procurato la carica di “nemico pubblico numero uno” e Melvin Purvis, l’agente dell’FBI che lo insegue. Siamo negli anni della Grande Depressione, gli anni Trenta. E Nemico pubblico è un ideale prequel di tutte gli altri film di Mann, da Manhunter a Heat – La sfida, da Collateral a Miami Vice. C’è dentro il seme del crimine che arriverà fino ai giorni nostri.

C’è la sfida ossessiva e assoluta tra due uomini. C’è la città grande e tentacolare che avvolge i personaggi. Il confronto tra Dillinger e Purvis inizia subito, a distanza, in montaggio alternato. E i due si incontreranno dopo molto tempo. Tra i due non ci sarà il tavolo di un ristorante come avveniva per Pacino e De Niro, ma le sbarre di una cella. Comunque una barriera, comunque il simbolo di due esistenze da due parti diverse della barricata.

Nemico pubblico è uno strano incontro tra passato e futuro. Mann ricopre la sua immagine di una patina d’antan, con una fotografia seppiata che siamo abituati ad associare a film ambientati in un’epoca lontana.

Ma contemporaneamente gira in digitale ad alta definizione, una materia in cui è maestro: oggi nessuno sa usare come lui questo mezzo.

L’effetto è straniante, antico e modernissimo allo stesso tempo: l’immagine è pura e nitida, definita. E non è quella sgranata a cui siamo abituati ad associare una fotografia con una patina di antico.

È un’immagine che da colorata/desaturata diventa bianco e nero e si sporca per diventare quella dei cinegiornali che raccontano al cinema le gesta di Dillinger.

Nemico pubblico ci racconta anche questo: Dillinger è uno dei primi esempi – forse il primo – di criminale mediatico. Viene citato dai media, la folla accorre copiosa per assistere al suo arresto, la polizia rilascia proclami alla radio e si fa fotografare con la sua preda. Ogni mossa viene resa pubblica. Ed è curioso che, mentre il cinegiornale lo mostra, il pubblico, che si guarda in giro, non riconosca il vero Dillinger che è al cinema. Curioso, ma normale. È la distanza tra il cinema e la realtà.

Tra l’icona, l’immagine che è grande e sta in alto, e l’uomo, piccolo e seduto in basso sulla sua poltrona. Vince sempre la prima. E l’immagine di un uomo famoso è destinata sempre a prevalere sull’uomo stesso.

Ma il cortocircuito mediatico più affascinante, che per un attimo fa entrare Nemico pubblico nel meta cinema, è Dillinger che vede al cinema Clark Gable, in Manhattan Melodrama (Le due strade nel titolo italiano). Il look di Depp/Dillinger, cappello e baffi, è uguale a quello di Gable. Come se i due si trovassero allo specchio Johnny Depp può essere anche Clark Gable. Anzi, forse è Gable che può essere Depp. Così bravo che non si può non parteggiare per lui. Per chi scappa. Alla sua cattura, la città è in festa e noi abbiamo la morte nel cuore.

Da vedere perché: l’ennesima “sfida” di Mann, tra passato e futuro, fotografia d’antan e digitale hd. Dillinger è il primo criminale mediatico e pubblico

(Pubblicato su Movie Sushi)

Rewards for Referrals – Promotional Channels kicks off their rewards for referrals program! Receive a $50 American Express Gift Card for every referral that becomes a Promotional Channels customer or let us donate $50 in your name to a charity of your choice!

For more information go to www.promotionalchannels.com!

$50 Referral Rewards

By Jeff Weaver

2/5 Stars

“Law Abiding Citizen” marks the second film this year that stars Gerard Butler.After roles in the action packed “300” and the Guy Ritchie directed “RocknRolla”, Butler has become a bankable star that can attract an audience by his name alone. Add Jaime Foxx as a co-star and F. Gary Gray, the director of “Friday” and “The Negotiator”, and it seems as if there is a formula for an excellent action film.

Butler stars as Clyde Shelton, an engineer in Philadelphia. The film opens with Clyde as he is forced to watch his family murdered by two men. His lawyer, Nick Rice played by Foxx (“Ray” and “Collateral”), makes a deal with the court to only have one of the men who killed his family go to death row while the other would only serve five years in prison.

Ten years then passes until the execution of one of the men who was involved in the killing. Something goes terribly wrong with the execution and the other man involved in the murders is found in an abandoned barn dismembered. The police trace these events back to Clyde and he is arrested and placed in a maximum security prison. However, this is only the beginning of the revenge that Clyde is about to extract upon the entire legal system and government infrastructure of Philadelphia.

Gerard Butler does a very good job at the beginning of the film as a hopeless father just scraping by and trying to find some justice for his family. However, after the ten year period between the murder and the man’s execution, Clyde becomes a heartless emotionless killer. This is when it seems as if Gerard just phoned in his performance with nothing noteworthy about his portrayal of this man after the killings.

The film also portrays Clyde as the antagonist in the film which seems to be going against the point of the film. Clyde is, in his eyes, being righteous and avenging the death of his daughter and wife, but he just looks like a man who is willing and able to kill anyone and everyone. The film only shows a minute of interaction with his daughter before the killers enter his home. It would have made a stronger point if the connection between Clyde and his family was more established and allowed the audience to truly understand his pain.

This film also tries too hard to have a deep meaning. Clyde continually attempts to point out the problems with the US legal system, but ends up just sounding like a kid who just passed his government class. A film is not going to paint poignant statements about the legal system when cars are blown up, people are stabbed with t-bones, and judges are killed by cell phones.

This film is not the greatest action movie, and it will win no Oscars or gain critical acclaim, but it is an entertaining popcorn movie. It is simply a movie where the audience can turn their brains off for two hours and enjoy some Hollywood violence and explosions; and isn’t that what we all need sometimes?