Wells Fargo Is the First Big Bank Simple Enough to Fail

HSBC failed its basic test with the bank regulators but it seems they are in ample shape to survive, even to survive a bankruptcy. Wells Fargo is one of the strongest banks in the US and I believe the US needs strong banks.

The provisional post-collapse plan submitted by Wells Fargo wasn’t perfect. The Federal Reserve and Federal Deposit Insurance Corporation want a revised version for next year. Unlike with other big banks, however, with Wells, United States authorities expressed optimism that the bank’s blueprint could facilitate an orderly resolution in bankruptcy. The regulatory response also lacked some of the tougher language used by the F.D.I.C. when it reviewed the others.

Read more at NYTIMES.com

Should You Outsource Payroll?

It’s nearly payday, and you’re dreading your payroll-related tasks. Unless you love crunching numbers, dealing with complex and ever-changing tax requirements, and writing checks, payroll is a pain. At the same time, your employees need to be paid correctly and on time. No doubt, as painful as payroll may be, it’s one of your most important tasks. Do it justice by considering outsourcing.

The Benefits of Outsourcing Payroll

Outsourcing payroll to a financial services company can result in numerous benefits including:

Fewer tax headaches – Did you know that 40 percent of small businesses pay the IRS an average penalty of $845 for late or incorrect payroll taxes? It’s hard to keep up with withholding requirements. Fortunately, most payroll service providers bear the burden, relieving you of tax headaches.

Reduced payroll processing costs – Whether you do payroll yourself, have a full-time accountant on staff, or use a part-time bookkeeper to process payroll, you’ll likely find that outsourcing payroll pays for itself.

Improved internal customer service – Your employees will appreciate being paid on time, every time. Not only that, many companies that previously could not offer additional services such as direct deposit on their own can do so once they begin working with a payroll provider.

What to Look For in a Payroll Provider

These are just a few of the many benefits of outsourcing payroll. However, you’ll want to choose wisely. When considering different providers, ask the following questions:

  1. – What types of securities are in place to combat fraud?
  2. – Will I have a single point-of-contact?
  3. – How is confidential data stored?
  4. – Is direct deposit available?
  5. – What other services are available (i.e., workers compensation, pre-tax plans, and group health plans)?
  6. – How do you handle tax withholdings?
  7. – How do employees access their personal payroll data?
  8. – What type of business continuity and recovery plans are in place should there be a disaster or breach of securities?

One of the biggest benefits of outsourcing payroll is industry expertise. For example, are you up to speed on the Payroll Fraud Prevention Act of 2014 or the latest tax withholding requirements for the city, county, state, or federal government? If you are like many small business owners, you have to wear many hats. Keeping up with the latest payroll regulations is a full-time job, making it smart to let the professionals handle it.

Milton Barbarosh is a full service financial services provider based in South Florida.

Protecting Your Financial Future with Insurance and Securities

Whether planning for retirement or to ensure the longterm health of your company — or both, hedge your bets with insurance and a diversified portfolio of securities. Fraud, market swings, natural and man-made disasters, and international volatility are but a few of the many risks each of us faces. These risks can, and should, be minimized through careful planning.

Protecting Your Financial Future with Insurance
According to Milton Barbarosh, a South Florida financial services provider and president of Stenton Leigh Group Inc., “Before you invest in anything, be it real estate, stock, bonds, or other securities, make sure that you’re adequately insured. This includes professional liability insurance, disability insurance, property insurance, and health insurance. Sadly, many of us are just one accident, one unfortunate illness, or one ‘act of God’ away from financial catastrophe.”

Barbarosh recommends reviewing your insurance coverage at least once per year. “Schedule an insurance review when you turn your clocks back in the fall,” Barbarosh suggests. “This is right before open enrollment for most medical insurance plans, making it the perfect time to examine your existing and future insurance coverage options.”

Protecting Your Financial Future with a Retirement Plan
Milton Barbarosh also explained that this is a good time for most employees to review their 401K choices. “If your company matches your contributions,” he said. “By all means, take advantage up to the match. It’s free money up to that point.”

What if you don’t have access to a company-sponsored retirement plan? “Start your own,” Barbarosh said. “Traditional and Roth IRAs are relatively easy to set up. If an IRA is not an option, get in the habit of socking away funds specifically for your golden years. The sooner you start, the better.”

“While you’re at it,” Barbarosh added. “Start building that 6-month emergency fund.”

Funding a retirement plan requires discipline, as does avoiding the temptation to tap into it when a crisis arises. “That’s why you need adequate insurance — and an emergency fund,” Barbarosh says. “They all work together to secure your financial future.”

Protecting Your Financial Future with Diverse Securities
In addition to insurance, a retirement plan, and a healthy emergency fund,” Barbarosh recommends investing in a mix of securities. “Once you have the basics in place, you can focus on building wealth by investing in various securities. Again, you have to balance all of the risks (volatility, securities fraud, political instability and so on) involved so that should one of your investments fail, your entire portfolio isn’t wiped out.”

The future is inevitable. Are you financially prepared for it? The time to protect your financial future is now.

RealPage, Inc. Enters Into a New Revolving Credit Facility That Expands Borrowing Capacity to $200 Million

Credit Agreement Contains an Accordion Feature Permitting the Company to Request Additional Borrowing Capacity of up to $150 Million; Wells Fargo is Acting as Lead Arranger and Administrative Agent for the Financing.

In international loan transactions, lenders obtaining foreign country money judgments against non-U.S. borrowers and guarantors often can utilize U.S. courts to enforce those judgments. This article discusses the judicial procedures and loan documentation provisions that can help maximize the effectiveness of U.S. Court enforcement of foreign money judgments.

Read more at TheSecuredLender.com

Swisher Closes $20MM Revolving Credit Facility With Siena Lending, North Mill

Its good news the Swisher found a funder. They don’t seem to have access to first tier lenders if they are going to Siena. Nothing against Siena, I think they did a great job, and showed their creative ability by closing this deal…. No toilet jokes please.

Interest on borrowings under the credit facility will accrue at the Base Rate plus 2.00%. Base Rate is defined as the greater of (1) the Prime Rate, (2) the Federal Funds Rate plus 0.50%, or (3) 3.25%. Interest will be payable monthly and the facility matures on August 29, 2017. Under the facility, borrowings and availability are subject to borrowing base calculations and limitations, and compliance with other terms specified in the agreement. Borrowings under the facility are secured by a first priority lien on certain of Swisher’s and its subsidiaries’ assets.

Read more at AblAdvisor.com

What to Consider Before Shopping for New Mortgages or Commercial Loans

Earlier this summer, the FDIC’s consumer newsletter (Summer 2012), covered several important tips consumers should follow before considering a home purchase. Many of these consumer tips carry over beautifully for businesses looking into debt financing and commercial loans.

Below are a few examples of consumer tips to heed, even if pursuing a commercial loan:

  1. Think about what you can afford and stick to your budget – Do the math. It’s not unusual for consumers to get in over their heads, and the same is true of businesses. While you may qualify for a large amount, make sure that you can comfortably handle the payments.
  2. Check your credit report – No one likes surprises. Check your credit beforehand to ensure that your credit report is accurate. This gives you time to correct any discrepancies.
  3. Don’t be afraid to negotiate – There’s no law against negotiating for a better deal. You won’t go to jail for requesting better terms, and you may very well walk away with a much better business loan simply because you asked.
  4. Review all of you loan documents carefully – We’re all guilty of signing on the dotted line without reading a single sentence of a document. Don’t let this be you! Read all of your loan documents and ask for clarification as needed. Better yet, have your attorney review the documents with you.
  5. Build a rainy day fund – As you consider obtaining a loan, pretend that you’ve already obtained it and put that money into an emergency fund.
  6. Keep your eye out for scams and signs of fraud – Unfortunately, mortgage and securities fraud is alive and well in 2012 and will be in 2013 as well. Stay alert!

Whether you’re in the market for a home mortgage or debt refinancing for your company, keep these simple tips in mind as you begin shopping for your next loan.