Identity Theft Can Devastate YOUR Business
By Yan Ross ©2004 - All Rights Reserved
This is the second in a series on the impact of Identity Theft on Businesses and Business Owners.
"For all SBA loans, personal guarantees are required of every 20 percent or greater owner, plus other individuals who hold key management positions."
"Financing Your Business" by the U. S. Small Business Administration
We've all heard of the problem, we've all seen the ads, but few have recognized how the theft of the identity of an owner or key manager can wreck your entire business.
Your business, like nearly every enterprise, depends on credit facilities to assure smooth cash flow. And it's a 98% probability that your business loan is backed up by the personal guarantees of you, your family, and even your key partners and executives.
But have you thought about how your vulnerability to identity theft could cost more than just a runaway credit card balance or a frozen bank account -- how it could cost you your business?
The identity theft victim's creditworthiness, and consequently the ability to make business loan payments in a timely manner, can be adversely affected.
If the lending bank "deems itself insecure," the loan may be accelerated. What if the bank can no longer be sure whose credit or guarantee is one the line? If your credit lines were suddenly called, would you have the cash to simply pay them off?
What impacts of identity theft that can result in this situation? The following examples are illustrative, not exhaustive.
Consider securing your owners and key executives the protection of a comprehensive plan that provides:
About the Author:
Mr. Ross is a frequent lecturer and quoted authority on identity theft issues. His recent presentations on these related subjects include such sponsoring organizations as Arizona State University College of Extended Education, the Arizona Society of CPAs, and the Arizona Small Business Association.
In Mr. Ross's capacity as an independent associate of Prepaid Legal Services, Inc. [NYSE symbol PPD], he markets the Identity Theft Shield product provided by Kroll Worldwide, the nationally and internationally prominent security and investigative firm. Additional information and enrollment capability can be accessed at yanross.info.