Small Business Loan Alternatives From Outside Investors–How Companies Find Investing To Grow

Small businesses that are currently looking for capital may have found that there are current opportunities available when it comes to borrowing, as some major financial institutions have vowed to continue small business lending efforts here in the middle of 2011, but there are also programs like those from the SBA that may be helpful for companies who need help growing despite being in a position where they are already established. However, there are businesses that are looking at alternative ways to gain the financing to expand their operations, and angel investors happen to be one of those resources that some companies are tapping into, but some businesses are questioning how they can attract this particular source of capital.
As with a traditional bank loan, businesses will go into a bank, present their needs for capital, how they will use a loan, and essentially try to sell a bank on why they are a safe option when it comes to making a particular small business loan, and giving a presentation to an investor is not entirely all that different. Resources like the SBA often suggest that small businesses who are looking to attract outside investors need to properly draw up a business presentation plan which should be descriptive yet concise, and of course prepared to grab any potential investor’s attention within the first minute or so of a presentation.
What typically makes small business angel investors, or any angel investors for that matter, different in terms of how a business may sell themselves versus talking to a financial institution for a loan is that many of these investors have been successful in business or in a particular businesses area, which means they will know a great deal about the sector in which a business owner plans to attempt to grow.
Obviously, if an angel investor feels that a business has potential to expand in a way that is profitable, and ultimately stay successful in this particular area, they may invest capital at different stages in the growth of a business, but also, these investors will usually take an active role in the running of a business, like sitting on the board of directors. Some business owners often shy away from angel investors simply because these men and women may want to participate in the direction a business goes, but this can often be a mistake as, once again, if a business owner does their homework properly and pitches their company to someone who was successful in their industry, they will not only gain financing that can help their company become more profitable, but they will also have the guidance of someone who has been successful and essentially has tread where they want to travel.
A word of caution that is often given though, usually centers around the business owner and who they allow to invest in their company. While businesses that are looking for capital cannot be particularly picky in some situations, a business should not put their company’s future on the line if an investor may have unreasonable demands or terms, or may not have been particularly successful in their previous business ventures. While investors can be an outside source of revenue that will greatly benefit a small business, business owners should also have their company’s best interests in mind, and make sure that they not only property plan a business presentation, but also seek out reputable investors who can help them in a manner that is beneficial to the company...

3.6-lakh cards hacked in May cyber attack: Citigroup

NEW YORK, JUNE 16: 

Citigroup Inc said a credit card data breach that took place in May affected over 360,000 accounts, around 80 per cent more than the initial figure revealed by the bank last week.

In a statement issued late last night, Citigroup said “a total of 360,083 North America Citi-branded credit cards were affected. Only accounts issued in the US were impacted.”

Citigroup reiterated its earlier statement that 1 per cent of its credit card customers were affected. But as per the bank’s annual report, Citi Cards has about 21 million customers in North America, 1 per cent of which would amount to just around 200,000 cards.

While Citi Cards’ Account Online system was compromised, the main cards processing system was not. Other Citi consumer banking online systems were not accessed or compromised, Citigroup said.

Customers’ account information such as names, account numbers and contact information, including email addresses, was viewed. However, data that is critical to commit fraud was not compromised, like the customers’ social security number, date of birth, card expiration date and card security code (CVV), the statement said.

The bank has reissued credit cards along with a notification letter to 217,657 accounts. Notification letters started being sent from June 3.

The statement further added that Citigroup has taken immediate action to rectify the situation and protect any customer potentially at risk. “Customers are not liable for any fraud on the account and are 100 per cent protected,” it said.

“Citi has implemented enhanced procedures to prevent a recurrence of this type of event. We have also notified law enforcement and government officials,” it added....

Credit cards: How many are too many?

BankBazaar.com 

Credit card companies come up with tempting card offers for investors albeit now more cautiously after the financial markets turmoil, by offering freebies such as life time free credit among other things.

Customers already possessing credit cards often find themselves taking up such offers and ending up with multiple credit cards.

The moot question here is, should you be content with having one credit card or does it make sense to have multiple credit cards and if so, then how many are enough?

Let's understand what the benefits and pitfalls of having multiple credit cards could be.....

JPMorgan Pays $27 Million to OCC, Clients Over Car-Loan Tactics

JPMorgan Chase & Co. (JPM) will pay a $2 million fine to the Comptroller of the Currency and $25 million to reimburse customers after using “high pressure” tactics to sell credit insurance on car loans.

The bank’s customer-service representatives deceived borrowers about costs and terms of credit protection offered to cover missed payments in 2008 and 2009, the OCC said in a settlement document released today.

“Chase Auto used written scripts together with oral high- pressure sales tactics that included statements which were materially false, deceptive or otherwise misleading in violation of the Federal Trade Commission Act,” the regulator said in a statement.

JPMorgan didn’t admit or deny wrongdoing. In consultation with the OCC, the firm developed a plan to reimburse customers and fix deficiencies in credit protection linked to Chase auto, home and credit-card loans, the OCC said. Chase advertised the car-loan product, known as the Chase Payment Assurance plan, as a way to cancel some or all monthly payments in case of accidental death, disability, involuntary unemployment or a leave of absence.

“We have reimbursed affected customers and have revised our sales scripts and marketing materials for our payment protection products,” Patrick Linehan, a JPMorgan spokesman, said in an e-mailed statement. “We’ve implemented enhanced and more extensive controls to ensure that we are treating our customers fairly.”

Chief Executive Officer Jamie Dimon reassigned retail bank CEO Charles Scharf’s duties and removed Scharf from the firm’s 15-person operating committee in a shakeup of top management yesterday. Scharf’s responsibilities for overseeing auto and student lending were given to card services CEO Gordon Smith.

The bank will take “appropriate remedial actions to fully address and correct the violations of the law,” according to the OCC....