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| | Small Business News from 123Print |
| | Small Business News from 123Print > Business Banking News > As late payments rise, small businesses drop problem clients | | | | As late payments rise, small businesses drop problem clients | By THOMAS GRANT
Posted: 11/11/2009 6:29:02 PM | Small businesses are starting to drop clients who ask for special discounts or miss payment deadlines, according to a recent report.
The average number of days it takes for retailers to collect on accounts due has increased 40 percent since October, to 18.82, according to Sageworks, a financial research firm. According to the Wall Street Journal, trends like this are leading many small businesses to drop problem clients so they can concentrate on loyal customers who do make their payments on time.
"That is a scary thing to do in an economy like this," Valarie Zeithaml, a marketing professor at the University of North Carolina at Chapel Hill, told the newspaper. "But to have to continue to have a customer that's losing the company money with every transaction is not a good strategy either."
According to the report, one website development firm in Richmond, Virginia recently eliminated 5 percent of its clientele and is saving 20 percent of its labor hours while revenue is set to rise 10 percent.
Moves to end relationships with troublesome clients may be part of broader cost-cutting measures at many firms. A recent survey by business technology firm CDW found that 61 percent of small businesses have reduced their operating expenses during the recession.
Customer retention news provided by 123Print.com - providers of custom loyalty cards, postcards and other high quality, low price tools to help businesses communicate with and retain customers
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| | | | | | | | | | Related News | | | | Merchants not expecting rapid recovery | By CARLOS ORTEGA
Posted: 3/12/2010 11:46:10 PM | According to business owner social network MerchantCircle, merchants are conflicted over the state of the economy. Though some are looking forward to recovery, the overall tone is one of caution.
The group recently released the second installment of its quarterly Merchant Confidence Index. Drawing on its member base, the survey collects the opinions of 12,000 local business owners. More businesses expect to add staff than to reduce staff, but numbers are still low... |
| | Senate releases details of Recovery Act extensions | By EVELYN BRANDT
Posted: 3/11/2010 10:34:06 PM | | Extensions to last year's Recovery Act increasing government guarantees and eliminating fees on small business loans recently passed as part of the American Workers, State and Business Relief Act - second in a set of bills that make up a large portion of the Senate's agenda in dealing with unemployment... |
| | Small business optimism dips in February | By PAULINE CROSS
Posted: 3/9/2010 5:40:22 PM | The economy may show signs of improvement, but small business owners aren't ready to celebrate. The National Federation of Independent Business Index of Small Business optimism for the month of February shows that business owners are skeptical about economic recovery, and are still facing challenges to financial stability.
The index dropped 1.3 points last month, back to the 88 percent reading it showed in December 2009. This makes the index seven points higher than last March's reading, the second-lowest in the index's history - 80.1 percent in 1980.
NFIB chief economist Bill Dunkelberg said that much of the discontent may come down to widespread disapproval over the way the Obama administration has handled small businesses during the recession. Their agenda, he claims, "remains a nightmare for small business owners and continues to be a real factor in small business owners not expecting business conditions to improve."
Owners also reported that sales were poor, making it impossible to hire new employees and difficult to pay existing staff - the result was a reduction in average workforce size.
With sales on the decline, it may be no surprise that the Conference Board's Consumer Confidence Index decreased sharply in February, leaving it at 46 percent - a more than 10 percent decrease from January. Experts seem to agree that eventual recovery will be a long, difficult process... |
| | Large banks' small business lending plans clouded in ambiguity | By THOMAS GRANT
Posted: 3/9/2010 5:39:04 PM | With small businesses routinely identified as a driving force in economic recovery, and among the most affected by the economic crisis, large banks have been subjected to consistent pressure regarding their lending to small businesses - or lack thereof. In response to criticism, some banks are claiming they will increase their small business lending. Analysts, however, are skeptical.
According to the Associated Press, JPMorgan Chase has begun an ad campaign emphasizing plans to lend $10 billion to small businesses this year, up from $6 billion last year. Wells Fargo has promised a 25 percent increase to $16 billion in 2010, and Huntington Bancshares a 100 percent increase to $4 billion over the next three years.
However, these banks have not made clear how the lending will be carried out in any detail. Accounting law does not require disclosure of loans based on size or type of the borrower, the AP reports.
"[Banks] get to pick and choose what numbers they tell us without having to give any context," financial reported James Kwak told the AP. "It doesn't mean they are sinister, but their numbers will be hard to verify."
Reuters recently reported that Federal Reserve Governor Elizabeth Duke told a congressional committee that she believes banks are likely to increase small business lending in the coming year, describing the outlook as "somewhat optimistic."... |
| | Tax deductions can mean substantial savings for small businesses | By DEREK MCALLISTER
Posted: 3/8/2010 9:31:25 PM | | Some businesses may dread tax day, but experts say that small businesses are uniquely positioned to save money when April 15 rolls around. A recent article at Entrepreneur.com offered some advice to small businesses on keeping as much capital as possible when filing their taxes this year... |
| | Congress extends funding for small business loans | By J.S. VANDERBERG
Posted: 3/5/2010 6:54:55 PM | | Last year's Recovery Act allocated funds to the Small Business Administration to help banks maintain lending to small businesses. The SBA waived fees and offered banks up to 90 percent guarantees on the loans it backed. The bill proved so popular that money began to run out... |
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