GBJ Staff

Possible investment option for Boomers

Baby boomers stand to inherit $10 trillion in the next few years and women will get the bulk of it, according to a Cornell University study, because they outlive men an average of seven years.

“Women already control 60 percent of the nation’s personal wealth – they outnumber men and they are traditionally the shoppers,” says financial expert Scott T. Schultz, author of Scott Schultz’s Guide to Closed-End Funds (www.closedendfundguru.com).

“It’s sad that, despite the fact that nearly a third make more money than their husbands and they’re starting businesses at twice the rate men are, 38 percent of women ages 30 to 55 worry they’ll eventually live in poverty because they can’t adequately save for retirement,” he comments.

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GBJ Staff

Make venture capital a first-tier priority

Commentary by Mike Klein

When Advanced Catheter Therapies announced a new technology patent in January, the dateline was Chattanooga, Tn. The press release noted, “The Company recently announced a name change from Atlanta Catheter Therapies.” No longer located in Georgia, Advanced Catheter raised almost $3 million from Tennessee-based investors after it became frustrated with Georgia’s inadequate venture capital opportunities. One of the investment requirements was relocation to Tennessee.

“Everybody I talked to in Tennessee, it was like, how can I help you?” said ACT founder Paul Fitzpatrick, who commutes to Chattanooga from his home in Atlanta’s northern suburbs. He recalled conversations that went something like, “What doors can I open to help you succeed?”

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GBJ Staff

Get ready for a maturing line of credit

by Bill McDermott

Tackling the cash flow and banking challenges in this economy may be one of the most difficult situations you face as a business leader. When you thought it couldn’t get harder, your bank just mailed you a notice that your line of credit is about to mature.

Your mind shifts into overdrive with the following questions.
• Will they renew it?
• Will the interest rate and fees go up?
• Will the bank ask for more collateral?
• If they don’t renew it, what happens next?

If your line of credit is about to mature, following are five things that will help you handle your renewal.
1. Verify your bank’s health
Visit www.fdic.gov to determine if your bank is having liquidity or capital adequacy issues. Banks with a loan to deposit ratio of greater than 85 percent, or a capital to asset ratio of less than eight percent, may be having issues.
2. Compare year-over-year financials

Pull your year-end financials together with a comparative interim period, such as January 2012 vs. January 2011, for example. With that loan package, ask to meet with your banker to explore any potential issues in renewing your line of credit.
3. Review commitment letter
Prior to meeting with your banker, review your commitment letter. Did you have any loan covenant defaults? Did you meet the 30 annual payout requirement, for example, if that is a condition of the commitment?
4. Evaluate customer service
If you’re experiencing significant delays in your approval or you feel the relationship has changed, it may be time to get a second opinion.
5. Recognize intangibles

If you have a change in bankers and you find yourself in a group called, ‘Special Assets,’ your bank may be sending you a signal they want out.

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GBJ Staff

Cash flow traps

Special Focus: Small Business/ Entrepreneur

Small businesses face and must overcome countless obstacles to succeed in today’s business climate. Managing finances is among the hardest. Research sponsored by AdviCoach cites that roughly 50 percent of small business owners run into cash flow hurdles and use personal credit cards to finance operations in order to compensate for a lack of funding or revenue.

The Small Business Association echoes this sentiment stating that cash flow management is probably the most frequent problem for business owners. Watching the cash inflows and outflows is one of the most pressing management tasks for any entrepreneur.

This common, oftentimes unaddressed issue is one that entrepreneurs need to manage well. Top trends in the industry suggest that finding people who can provide assistance or having the right partnerships in place when you need them are key to any small business’s success. A business owner must know the best sources for meeting additional cash needs and keep good relationships with those in finance, such as bankers and other creditors.

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GBJ Staff

GTC campus in N. Fulton within reach

The Georgia legislature will fully fund a Gwinnett Technical College campus in North Fulton from its FY2013 budget. The $25 million allocation represents the Technical College System of Georgia’s (TCSG) conservative estimate of the project cost.

The eight location proposals received by the Greater North Fulton Chamber of Commerce Workforce Development Committee meet all necessary criteria and are now with Gwinnett Tech and the TCSG for review. Sites include Milton Center (the former Milton High School), and locations in Sandy Springs, Roswell, Alpharetta and Johns Creek.

TCSG spokesman Mike Light commented that Commissioner Ron Jackson and Gwinnett Tech President Sharon Bartels plan to discuss the proposed sites and make their recommendation to the Technical College Board. In the past year, Bartels has worked with leaders to find a suitable space to buy, renovate and offer classes, a less costly option than a new build.

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GBJ Staff

Invest in yourself

by Mark Lloyd

Completing the tax crunch deserves a reward; make this the year you invest in your retirement. Following these tips to stay on the right track as you approach or enter your golden years.

Fund your retirement first. Any employer match is free money so be sure to take advantage of it. A word of caution, if your employer matches with company stock be sure to diversify. Having your paycheck and retirement based on the performance of a single company is too risky.

Timing is usually everything. Waiting until later in life to fund your retirement can cost you since you’ll lose out on years of compound growth. If you haven’t started saving for retirement make it a goal to start today. Regardless of the amount, a small investment now can pay big dividends later.

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GBJ Staff

Bidding farewell to Barbara King

Barbara King

March 28, 2012, the Gwinnett community and Primerica Financial Services lost a very special person and colleague, Barbara King.

Barbara began her career at Primerica in 1980 when she joined A.L. Williams to build a communications and corporate relations division. Management, Inc. and ALW-TV, which at the time of its creation in 1986, was the largest privately-owned business satellite TV network in the U.S. Barbara was an Executive Vice President and Planning Group Member when she retired for health reasons in 2009.

In addition to her corporate role, Barbara had a very visible civic and community role for Primerica. She served on the Boards of countless non-profits and civic organizations and was the force behind many community initiatives. She was awarded numerous honors for her work, most recently the United Way Women’s Legacy Award.

 
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GBJ Staff

Three elements critical to bank presentations

by Bill McDermott

To gain the financing your seek, an on target presentation to your bank is essential.

Here are three critical elements you need to know as you prepare:

  1. Is the bank you’re presenting to financially healthy? Too many business owners spend time presenting to banks that are having capital adequacy or liquidity problems. Check the financial health of the bank at www.fdic.gov.
  2. Identify your company’s weaknesses and be prepared to mitigate them. Be prepared to offer personal collateral if your company is leveraged. If you’re asking for a lower interest rate, be prepared to offer additional deposits. For start-up businesses, be prepared to offer liquid collateral (cash value life insurance or marketable securities).

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GBJ Staff

Don’t bank on debit card savings

by Kelly McCutchen and John Berlau

Large banks are responding to federal price controls that raise costs for debit card processing. Now, smaller banks and credit unions (and their customers) are at risk from the same.

These price controls, contained in the 2010 Durbin Amendment of ‘Dodd-Frank,’ offer no tangible benefits to consumers. Rather, they cap what retailers pay banks and credit unions to process debit card transactions, shifting those costs to consumers.

Merchants benefit from the use of credit and debit cards through increased sales as well as a reduction in the theft and fraud associated with handling cash and checks. In return, they pay an interchange fee – often called a ‘swipe fee’ – for each purchase with these cards. Before the Durbin Amendment, these fees averaged 1 percent per transaction. A retailer selling a $500 television, for instance, would pay a $5 interchange fee. But since October 2011, large and midsize financial institutions cannot charge more than 21 cents per transaction, whether the purchase is for $5 or $5,000.

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GBJ Staff

How to file for a tax extension

So, you need to file a tax extension request. How do you determine if your circumstances are eligible? The Internal Revenue Service (IRS) makes provisions for individuals and businesses to apply for a qualifying extension.

If you are granted an IRS extension, you will accrue and have to pay interest on any tax not paid by the regular due date of your return. Find expanded detail, eligibility requirements and forms at www.irs.gov.

Extension options include:

  1. Automatic two-month extension
    Attach a statement to your return explaining the qualifying situation. Married tax payers filing a joint return may qualify, but the extension applies only to the spouse who qualifies.

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