Seven scams targeting small businesses

Posted by SIU Credit Union on Jan 10th, 2011 | no comments

MADISON, Wis. (1/10/11 CUNA)–Small businesses should note seven scams, according to the Better Business Bureau (BBB).”Small-business fraud can come from internal threats, such as employee fraud, or from external full-time scammers,” said Alison Southwick, BBB spokeswoman. “Because small-business owners often lack the time and resources to fight fraud, they are a popular mark for any number of different scams” (LoneStar Leaguer Jan. 5).Credit unions can warn their business members about these scams: 

• Directory Scams–Usually the scammer will call a business to “update” the company’s entry in an online directory, or the scammer might lie about being with the Yellow Pages. The business is later billed hundreds of dollars for listing services it didn’t agree to or for ads which it thought would be in the Yellow Pages.
• Office Supply Scams–Some scammers prey on small-business owners and hope they won’t notice a bill for office supplies–such as toner or paper–that the company never ordered.
•  Overpayment Scams–Businesses should be cautious if a customer overpays using a check or credit card and then asks the business to wire the extra money back to them or to a third party. Overpayment scams often target catering businesses, manufacturers, wholesalers and even sellers on sites like eBay, Craigslist and Etsy.
•  Data Breaches–No matter how vigilant a company is, a data breach can still happen. Whether it’s the result of hackers, negligence or a disgruntled employee, a data breach can have a severe impact on the level of trust customers have in a business.
•  Vanity Awards–While it’s flattering to be recognized for hard work, some awards are just money-making schemes and have no actual merit. If approached about receiving a business or leadership award, research the opportunity carefully and be wary if asked to pay money.
• Stolen Identity–Scammers often will pose as legitimate company to rip off consumers. A company whose identity is stolen doesn’t necessarily lose money, but its reputation is potentially tarnished when angry customers ripped off by the scammers think the real company is responsible.
• Phishing e-mails–Some phishing e-mails specifically target small-business owners with the goal of hacking into their computer or network. Common examples include e-mails pretending to be from the Internal Revenue Service that claim the company is being audited, or phony e-mails from the BBB saying the company has received a complaint. Companies receiving a suspicious e-mail from a government agency or the BBB should not click on the links or open attachments. Contact the agency or the BBB directly to confirm the legitimacy of the e-mail.

  

SIU Credit Union Can Put You in Business

Posted by SIU Credit Union on Oct 27th, 2009 | no comments

SIU Credit Union is here to help small-to-medium size business. Credit unions have established a relationship with the Small Business Administration (SBA) to expedite loans to credit-worthy small businesses. The SBA’s finance programs enhance the ability of credit unions to provide long- and short-term loans to small businesses that might not qualify through other lending channels.

SBA loans can only be used to finance the start-up, operation, or expansion of a business. You can’t use the funds to repay other debts, reinvest in financial instruments, or speculate in real estate, financial, commodity, or other markets.

To obtain an SBA loan, you must demonstrate the ability to repay the loan from the cash flow and profits of the business and meet other eligibility criteria.

The credit union makes all necessary arrangements to secure a loan with the SBA. Both fixed and variable interest rates are available for an SBA loan.

Borrowers should be prepared to pay closing costs on SBA loans, including all recording and packaging fees, title company and environmental reports, appraisals, and attorney fees. Total closing costs average between 3% and 5% of the loan amount.

SIU Credit Union may be able to help you with your business; visit our business services representative, Angela Williams-Barke today to see how SIU Credit Union Business Services products can help you. Call 618-457-3595 to schedule an appointment.