Coaching Helps Miami Small Business Owners Improve Credit & Stand Up to the Recession
Hopefully, the economy really is picking up. Economic pundits have been going back on forth on whether there was indeed a pulse in our economic recovery. South Florida sure hopes so. The fallout from the recession has left many business owners with blemishes on their credit profiles, and ACCION USA has done our very best to respond.
While ACCION USA has always provided credit tips and education throughout our loan process, we wanted to formalize these services and make them individualized. In February, we launched a ‘Credit Coaching Services’ pilot in Miami. A Credit Coaching session is a chance for a business owner (or future business owner!) to sit down one-on-one with an ACCION USA credit expert to work on solving their specific credit issues and developing strategies for improving their credit profile.
ACCION USA Credit Coach Benjamin Himmelfarb walks a client through his credit report
The truth of the matter is that our current credit reporting system is flawed. For the uninitiated, credit bureau reports can be really hard to read and understand. The laws about consumer rights are complex, and credit companies and collections agencies often take advantage of that fact to break the rules. Alarmingly, almost 50% of credit bureau reports contain errors!
That’s why many clients have found it very useful to review their Equifax, Experian, or Transunion report with a credit expert at ACCION USA.
ACCION USA staff worked with one woman who has owned a family restaurant for 20 years. She had some financial difficulties a few years back and had a legal judgment filed against her by a credit card company. When we reviewed her report, we found that even though the account was closed by the court, the credit card company was still reporting that she was paying late! This was really affecting her credit score and history, but a few phone calls and dispute letters later we were able to make sure the company reported the account as closed. She’s hoping to obtain business financing soon.
Of the folks who participate in a Credit Coaching session, some want to solve credit issues before they apply for business financing. Some have experienced identity fraud and want to clear their name. Some want to figure out how the best way to pay down debt. But everybody leaves with the tools they need.
Remember, there is no such thing as a quick fix for credit problems, but knowledge is power!
If you know a business owner in need of coaching, or would like to sign up for a Credit Coaching session yourself, please contact Benjamin Himmelfarb at: bhimmelfarb@accionusa.org.
Tags: credit coaching, miami
The Land of Opportunity
This week we celebrated the Fourth of July. Hot dogs, swimming pools, fireworks – how better to ring in this annual occasion and take a few days to remember our country’s history? As I sat along Boston’s Charles River banks this Sunday evening, I couldn’t help but reflect on our country’s core principles of freedom, opportunity, and equality.
Moreover, my thoughts centered on those who come to the U.S. every day to realize the “American dream.” But we all know that U.S. soil doesn’t guarantee a life free of struggle.
Imagine two scenarios. In one, a Venezuelan women moves to Miami with her husband. She has limited English fluency and little personal savings, as her husband handles their finances. But she wants to begin a small sewing business to keep herself busy and contribute to the household income. In the second scenario, a young man comes to the United States from Ecuador. He has his Masters degree, nearly twenty years of business experience, perfect English fluency, and a hefty savings. He hopes to open a leather importing business in Boston.
Despite their many differences, these two individuals have two things in common: their lack of credit history and knowledge of the U.S. financial system. And because of these key similarities, neither can get an affordable loan.
These descriptions detail the experiences of two ACCION USA clients. Lack of credit history is only one of many challenges immigrants face when trying to access financing. Language barriers are also great, as detailed by the U.S. Government Accountability Office’s recent report, entitled Factors Affecting the Financial Literacy of Individuals with Limited English Proficiency. The report explains that language barriers can prevent individuals from understanding financial products’ terms, disputing charges or fees, managing accounts, and simply accessing financial education opportunities. Furthermore, many immigrants carry a negative correlation with financial institutions, due to prior experiences or institutional fraud and instability in their countries.
ACCION USA has many programs and services in place to address these challenges. For example, our small credit builder loans are specifically designed to help individuals with no credit history begin to build one. Our financial education workshops help immigrants understand not only how to build credit but also why building credit is important in the United States. And we continue to work closely with groups such as the Massachusetts Refugee Enterprise Achievement Program to establish ACCION USA as a trusted and reliable name among immigrant communities.
Through these programs and relationships, ACCION USA continues to help immigrants achieve the full “American dream.”
Tags: accion usa, english, Financial Education, fourth of july, immigrant, literacy, massachusetts, miami, report
I Know It’s Not Polite, But …
ACCION USA client Focaccia Rustica served up delicious coffee and sandwiches to bed racers.
Generally speaking, it’s never polite to give “the finger,” but that’s just what local Miami merchants are doing (figuratively, of course), and they’re aiming it at the recession. And, well, maybe it’s OK this one time.
With “stimulus package” specials and an irreverent Great Grove Bed Race festival (see link for hysterical photos of participants) –revived after a six-year hiatus — things were happening in Coconut Grove all Labor Day weekend. Thank god for these small businesses that make us laugh and forget about the grind and troubling news of the week.
ACCION USA client, Focaccia Rustica, was right on the race’s path (did I mention they have outstanding coffee and sandwiches?) and they were working hard to make the most of the thousands that turned out on Sunday.
And that’s what you see all over the Grove, local merchants that are getting creative, showing their grit, and having fun even during these brutal economic times. So, do me a favor, visit your local businesses and keep this grit (and fun) going.
Tags: client story, coconut grove, focaccia rustica, labor day, miami
The Audacity of Hope … ACCION USA style
ACCION USA's Anh Nguyen and Luz Preciado at the "friendraiser" event.
It is easy to lose hope in the face of the economic recession, what with negative amortization and adjustable rate mortgages causing trouble for hundreds of thousands of homeowners. My local NPR station seems to herald the same gloomy news at the end of every month–unemployment is rising and foreclosure rates are holding steady—blah, blah, blah. So for our networking event on May 27th, ACCION USA in Miami decided to spin a positive note and highlight the many things we could do to help South Florida business owners in these difficult times. In other words, it was a night focused on the positive, bright future ahead.
Though it was stormy day in Miami, the “Positive Amortization Friendraiser” event began smoothly at the Little Haiti Cultural Center. After welcoming all attendees, including Florida Advisory Board members, member city and county economic development agencies, local bank representatives, and some of our non-profit partners in the community, program Director William Mateo reiterated ACCION USA’s mission and the impact we’ve had since launching the program in 2003. Check out the slide show we projected showing our very first Miami client (disbursed before we had put together all the office furniture!) as well as those that have grown to support local jobs. ACCION USA client Juliano Echeverria, co-owner of a t-shirt company , told us about the 3 families he supports through the job opportunities of his Miami-based company. Like many similar clients who were unable to obtain a bank loan to jumpstart their business, Juliano was very grateful for the option that ACCION USA provided.
Funky Urban
Funky Urban
Not wanting to only restate what our organization has done in the past, ACCION USA announced an upcoming series of activities, the Survive and Thrive campaign, to assist business owners in this environment with business survival techniques like guerrilla marketing, and budgeting and management tips. We recruited local professionals new to the concept of microlending in Miami to get involved and volunteer in some shape or form to the campaign.
What could you be doing to help small business owners in your local community? Consider donating your talents today!
Tags: funky urban, miami, positive amortization