Posted on 4/8/2019 10:23 AM By First Bank
Fraud is an unpleasant topic; however, with its impact on the rise, business owners and consumers alike are faced with this growing threat. Often, when fraud is discussed, many of us think of the countless teams of external thieves and cybercriminals targeting businesses daily. However, did you know The 2018 Insider Threat Report claims 66% of organizations consider malicious insider attacks or accidental breaches a higher probability to occur than external attacks? Also, that a larger number of firms consider insider threat more damaging than external attacks?
Intentional Insider Threats
Simply put, they’re not wrong. Although external fraud attempts are relentless and of constant concern, there are also countless ways insider threat—both intentional and non-intentional—is of credible concern to business owners. “Unfortunately, employees of organizations have found a myriad of ways to defraud their employers,” said Tony Gales, Partner/CPA and acting Internet Security M ...
Posted on 4/8/2019 8:19 AM By First Bank
It’s difficult to not learn anything after $1.1 trillion and 8.7 million jobs are lost in the matter of months. We are now a little more than a decade removed of the financial crisis of 2008. Nearly every walk of life, age range, and industry was affected; whether you lost a job, savings or retirement monies, or a business, there are several lessons we can glean from the Great Recession. Much like any dilemma, there is always work to be done and improvements to be made and reflecting on what happened is imperative to moving forward and uncovering what we have learned. It is in this reflective period that we can all learn how to persist through any future downturns or lean times. Here are some key takeaways from the Great Recession and lessons learned in its aftermath that can help to avoid negative financial moves.
The saying that “no news is good news” can prove to be true in some businesses; however, that same contentment lulled much of the U.S. into a false se ...
Posted on 3/18/2019 9:46 AM By First Bank
With technology changing at such a fast pace, it can be difficult to keep up with ever-changing fraud schemes, scams, and various regulations. The 2018 AFP Payments Fraud Survey1 uncovered some alarming numbers; fraud hit a record high in 2017 with 78% of all organizations being affected by payment fraud. Check fraud continues to be the number one form in which payment fraud is attempted with 74% of respondents reporting this as an issue.
Unfortunately, check fraud remains prevalent due to advanced technology making it easy for criminals to replicate your checks. As scams become more sophisticated, so does check fraud; all an offender needs is a valid account number and printing software to wreak havoc on your business’ finances. While modern technology creates more intricate forms of check fraud, the leading scheme involves fake checks.
Businesses are a hot target for criminals and are likely victims of fraud due to the amount of checks written for vendors, bill payments and more. In a 2016 Ameri ...
Posted on 3/4/2019 9:01 AM By First Bank
When I ask family-owned and other privately-held businesses about their competitive advantages, one of the most common answers I hear is about their ability to create a great environment for employees to thrive. Often, the culture of the organization is described as having a “family feel” in which employees feel closely connected to their colleagues, more engaged, face less turnover, and can be more nimble in how they anticipate and react to their customers’ needs.
So, how do successful family-owned and other privately-held businesses create great cultures? By playing to their strengths. Such businesses may not have the resources available at larger organizations to help them develop a strong culture, such as large human resource departments to maximize team engagement, and the depth of talented leaders at the top of the company. Yet what they lack in resources, they make up for in other ways.
By MICHAEL DIERBERG, Chairman of the Board, FB Corporation
Posted on 2/27/2019 9:36 AM By First Bank
Money clichés are a dime a dozen, however, some of those financial catchphrases can truly be applied to your real life and pay off in the long run. One such saying is especially true for business owners. The saying that “cash is king” legitimately represents the importance of liquidity for any business of any size. Cash is needed for everything involved to successfully run your business.
There are many reasons a business can fail, but one of the leading factors is running out of cash. A safety net is imperative to successfully persist through common events like a significant decline in sales, a mainstay customer not paying your invoice, or even being able to maintain seasonality. Every business’s safety net will be different and dependent on the volatility of the business or industry, therefore determining how much cash your business needs.
While liquidity is never a one-size-fits-all solution, all businesses must consider the following key elements:
Proper forecastin ...
Posted on 1/29/2019 9:14 AM By First Bank
Whether you conduct your business out of a storefront, a factory, a farm, or an office, you’re among the multitude of businesses that operate out of a commercial space. Astute business owners are responsible for taking inventory on a wide variety of elements in their business’ success – be it accounting and payroll, managing employees, and even down to evaluating their existing workspace and property. It’s important to assess your needs in terms of workspace. As your long-term business needs adjust to fit the demands of your business’ growth, owners should weigh the pros and cons of renting or owning a commercial property.
Much like owning a home versus renting one, a commercial mortgage can also provide a more practical alternative to leasing a workspace. As a business owner, however, you also know that not every business evaluation offers a “one size fits all” solution. Whether you’re a startup or an established business that’s expanding, explorin ...
Posted on 10/17/2018 11:03 AM By First Bank
By Tom Lynn, SVP, Senior Group Manager, First Bank Commercial Real Estate
Originally published in the San Francisco Business Times
Since there are so many variables in commercial real estate (CRE) lending, not all transactions fit all lenders. This raises many questions for investors and developers who are seeking financing.
As a trusted advisor, some common questions asked by many borrowers are:
When seeking a commercial real estate loan, what’s your typical deal size? Deal sizes are dependent on the size and risk tolerance(s) of the lender. For example, at First Bank, the size of loans generally don’t exceed $15MM, although exceptions can be made. • What types of properties do you finance? Most real estate investors and developers want to purchase properties like office buildings, industrial properties, retail space, residential developments, and storage buildings. Often, lenders will also provide financing for specialty niches like churches and senior care facilities. Alt ...
Posted on 10/17/2018 7:00 AM By First Bank
Family-owned businesses in the United States are as common as hometown parades and pumpkin pie on Thanksgiving. Family-owned businesses, like the one where I work, represent 80-90% of all businesses, and generate between 40-60% of Gross Domestic Product (GDP). We exist in all shapes and sizes, from small corner stores to huge companies, with over $100 billion in revenue. We also face common opportunities and challenges that are different from publicly-traded companies, such as managing intra-family conflict, shareholder control, distributions, and engaging the next generation.
Yet, despite our ubiquity and common opportunities and challenges, far too many of us treat the issues we face as family-owned businesses as if we’re the only ones to confront those issues. Our isolation in addressing these challenges is reinforced by the lack of well-known resources regarding these topics. Many of you might be able to name several good books about how to be a great leader, but how many can name a good book ...
Posted on 9/25/2018 9:08 AM By First Bank
By Lisa Bulaich
Originally published in the Sacramento Business Journal
In the course of many business owners’ journey to success, they’ll find themselves considering a lease, a purchase, or the refinance of a commercial property. Perhaps the business has outgrown its current space or a second location is needed for expansion, or continuing to pay the rising cost of a lease just doesn’t make good business sense. The motivating factors are many.
When these situations occur, business owners often find themselves evaluating new lease arrangements, researching purchase options, or evaluating the details surrounding a refinance. A lease can make sense, however, if the business owner is not quite ready to put down roots. Purchasing a commercial property can be a better option when the business owner is ready.
Purchasing enables business owners to reap the benefits of paying themselves rent while purchasing an asset, to take advantage of tax write offs, and to create a new revenue str ...
Posted on 9/18/2018 10:55 AM By First Bank
By ANDREW ZINNOriginally published in the Los Angeles Business Journal Insurance may be one of the more complex and overlooked areas in commercial real estate financing. Typically, banks require borrowers to obtain some level of insurance to cover the value of the improvements being financed. Property and liability insurance policies are lengthy and their review is even more monotonous than reading the reams of paper produced by a bank in the form of commercial loan documents. Just like your loan documents, one should pay particular attention to the defined terms and exclusions in an insurance policy. The definitions and exclusions are the key to unlocking the scope of your coverage. One of the key exclusions you’ll find with standard property insurance policies is for pollution. Introduced in 1978, environmental insurance was first developed to fill the insurance coverage gaps created by pollution exclusions in liability and property insurance policies. Because the definition of pollution may be subjective, ...