SpearTek Tile & Stone
In This Issue



Pictured Above

Kam Tekin and Edward Spearman of SpearTek Tile and Stone , with their banker, John Seeds, Senior Vice President.

 

SpearTek is a global importer and distributor of fine tile and stone. Click here to read SpearTek's client story, including how Atlantic Capital Bank has helped Speartek to successfully transact business overseas. 

 

 

Helping Georgia Move Forward

At the June 28th Business Leaders' Breakfast, Atlantic Capital was pleased to present speaker A.J. Robinson, President of Central Atlanta Progress and Chairman of the Board of GeorgiaForward. In his speech, Mr. Robinson talked about the work being done by GeorgiaForward, a new non-partisan initiative working to explore innovative solutions to statewide policy challenges. The GeorgiaForward initiative is intended to spark a statewide conversation, without regional or political bias, about the direction of our state and how to ensure that Georgia remains a great place to live, learn and work. To learn more about GeorgiaForward, visit www.georgiaforward.org.

Atlantic Capital Bank, Third Quarter Newsletter

EconomicandBusinessOutlookEconomic and Business Outlook, September 2011
by Doug Williams, President and CEO of Atlantic Capital Bank
Doug Williams

Doug Williams,

President and CEO of Atlantic Capital Bank

Economic activity during the first half of 2011 was surprisingly weaker than most analysts and forecasters had anticipated.  The most recent numbers from the Bureau of Economic Analysis indicate the economy continued to expand at an anemic pace as US GDP grew 0.7% over the first six months.  With persistently high unemployment, continued deterioration in housing values, and excessive government and consumer debt levels, there is little reason for optimism as we look ahead.

 

Weak economic activity during the first half of the year was initially attributed to a series of temporary factors including the Japanese earthquake and tsunami, unrest in North Africa and the Middle East, and cold weather in the US.  However, closer examination of historic patterns of economic cycles suggests that recovery from recessions accompanied by a major financial crisis tends to be subdued for an extended period of time.  Throughout history, financial crisis have been preceded by episodes of excessive speculation and borrowing.  The process of correcting those excesses is complex and lengthy, and, as a result, new capital formation and investment in growth is limited for a prolonged period.

 

The continuing political drama regarding the downgrade of US government debt, the debt ceiling and the budget deficit is an obvious example of the difficulty of correcting these excesses.  The simple truth is that the current rate of growth in US government borrowing is unsustainable and that government's share of economic activity must shrink in the years ahead if the economy is to grow and living standards are to improve.

 

US consumer debt levels exploded over the last decade rising from approximately 66% of GDP in 2000 to over 99% in 2009.  With high unemployment, low growth in personal income, and the evaporation of considerable housing equity, the deleveraging process for US consumers will continue to restrain spending for another 2-3 years or more.

 

Correcting the excesses of the long economic expansion of the last decade will encumber the US economy with a subdued pace of activity for a prolonged period.  Business owners and managers are adjusting growth and return expectations accordingly.  Consumers have shifted their focus from borrowing and spending to repaying debt and saving.  These are significant changes in economic behavior and they will shape our politics, our business strategies, and culture for years to come.

PreventingCorporatePreventing Corporate Check Fraud

by Kurt Shreiner, Executive Vice President of Corporate Financial Services 

Kurt Shreiner

Kurt Shreiner, EVP Corporate Financial Services

The Association for Financial Professionals (AFP) recently conducted a survey on fraud with its corporate members. The survey's results should put all companies on high alert. Of the responding companies 71% had experienced fraud or attempted fraud in 2010. Check fraud was involved over 90% of the time.

 

Check fraud is growing at a time when our society is becoming more and more connected electronically. As check volumes decline in our country, check fraud is growing at a rapid pace. Looking as far back as 2007 the Secret Service estimated the losses associated with check fraud totaled more than $5 billion per year. The Comptroller of the Currency has determined that 13 fraudulent checks are written every second.

 

Businesses should take some basic precautions to eliminate fraud and the losses associated with check fraud. Following some simple rules can help reduce your exposure to check fraud:

  1. Protect your check stock and keep it secure.  
  2. Reconcile your accounts on a timely and regular basis. Companies can quickly and easily investigate account activity for any abnormalities using on-line banking systems.  
  3. Ask your bank about the best practices for preventing and reducing fraud. Make it a regular topic of conversation with your banker.
  4. Use positive pay and other fraud prevention tools.  
  5. On a corporate level use dual controls for check writing, check mailing and reconcilement.  
  6. Ask your auditors to investigate your check issuance processes and procedures.  
  7. Be suspicious. If you suspect fraud, contact your banker immediately.  
  8. Employees commit 60% of all corporate fraud. Be aware of changes in behavior or attendance habits with any employee. According to the Association of Certified Fraud Examiners the average fraud scheme goes undetected for 18 months. 

Work with your bankers and auditors to prevent and eliminate fraud. A heavy dose of common sense and diligence can greatly reduce the risks associated with check fraud. 

 

GlobalGrow by Going Global
by Jeff McCoy, Senior Vice of President Corporate Banking
Jeff McCoy
Jeff McCoy,

SVP Corporate Banking

In the media today, there is continuous talk about the outlook for flat growth in the U.S.  So, how can an American business grow in the current economy? Going global may be the key to your company's success.

 

Although the outlook for the U.S. economy is not bright, other regions of the world are benefiting from the emergence of new consumer purchasing power.  While U.S. gross domestic product is only expected to grow by 2% next year (according to IMF forecasts), China and India are forecast to grow by 9% and 8%, respectively, while Brazil is forecast to grow by 4%. 

 

Exports are a major part of Georgia's economy.  Last year the state exported more than $28.7 billion in goods, according to figures released by the Georgia Department of Economic Development.  The bulk of Georgia's exports are forest products, chicken, and equipment, but mixed in with these exports are the products of many small enterprises.  Of the more than 10,000 Georgia firms that export goods, 83% have fewer than 500 employees.  If your firm isn't exporting, maybe it's time to consider doing so.

 

Business Owner FAQs

 

Q.  I don't have any experience dealing with foreign markets.  Who can help me figure out if exporting makes sense for my company?

 

A.  In Georgia, two key allies of businesses hoping to trade overseas are the Georgia Department of Economic Development (GDEcD) and the Metro Atlanta Chamber of Commerce (MACOC). 

 

Kathe Falls manages the international trade services offered at GDEcD.  Her staff leverages the state's 10 international officesto provide export promotion for Georgia companies. Click here to visit the GDEcD's resource-filled website, or contact Kathe Falls directly at (404) 962-4120.

 

Ric Hubler is Director of Global Business Growth at the Metro Atlanta Chamber.  He assists Metro Atlanta businesses to make contacts in foreign markets.  Click here to visit the Chamber's Global Commerce webpage, or contact Ric Hubler directly at (404) 586-8455.

 

Additionally, your Atlantic Capital banking team can also be a great resource to help you think through the international trade process.  

 

Q.  How can I learn more about the countries that I think could be good markets for my products?

 

A.  In Atlanta there are over 60 foreign countries represented by consular or trade offices.  The staff at these offices can provide you trade data about their countries and help you connect with in-country resources.  You can find a list of all the foreign offices in Georgia at www.georgia.org.  

 

Q.  How do I handle the logistics and risk of trading internationally?

 

A. Atlantic Capital's Treasury Services Team will sit down with you to develop a comprehensive international banking program for your company.  We can help you make payments, receive payments, and manage the risk of trading globally.

 

To view an international trade success story from SpearTek Tile & Stone, click here.  

 

 

Atlantic Capital Bank

www.atlanticcapitalbank.com

Member of FDIC, Equal Housing Lender