What is this Cash Management Stuff and Is It for My Business?

Years ago when I landed my first job in Cash Management at a large financial institution, I got so many questions from family, friends and even customers about what I actually did for the bank. Everyone could understand in layman’s terms the basic job duties of a teller, lender, branch manager and even lending assistant, but when you throw in the term Cash Management, it really throws people for a loop. Most people would use context clues to believe I help people manage their cash, kind of like an investment rep. Well, not exactly! I hope that after reading my blog that you not only understand who would actually qualify and benefit from being a Cash Management customer, but also proceed further to see how you can become a Cash Management customer and benefit from some of the amazing products and services.

So where do we start to figure out if you should be a Cash Management customer? You might be asking yourself, how do I know if I am one of these customers if I don’t even know what the term Cash Management means? Cash Management is really a broad term that refers to the collection, concentration and disbursement of cash. So in essence, are you managing your cash flow? Moreover, efficient cash management means more than just preventing bankruptcy or preventing your account from going negative. It improves the profitability and reduces the risk to which your business is exposed.

For a Cash Management customer, here are some of the products/services that could help a new or growing business manage their cash on a daily basis.

  • Business Online – Sophisticated financial tool that merges seamlessly with the rest of your operation. Online banking allows you to monitor your accounts in real-time throughout the day and move money from one account to another. It also has numerous reporting capabilities and makes monitoring your account easy and more consistent.
  • ACH Origination – Allows your business to initiate electronic fund transfers to or from your business account to other financial institutions the next day. This would include direct deposit of payroll, automatic drafts from your customers’ accounts, vendor payments, etc.
  • Remote Deposit Capture – Ability to make check deposits straight from your office. Snow, sleet, rain or even being short staffed won’t interfere when it comes to making your check deposits.
  • Positive Pay – Provides businesses with the ability to protect their accounts against check fraud.
  • Zero Balance Accounts – Gives the business the ability to centrally control funds in a master account that is linked to separate sub-accounts which improves the ability to control your disbursements, collections and cash flow.
  • Electronic Data Interchange – Provides detailed reports of incoming ACH items sent to you by your business clients.
  • Loan Sweep – Automatically move funds from your revolving line of credit to and from your business account based on the set balance established.
  • Online Wire Transfers – Same day electronic transfer of funds to other financial institutions.
  • Payroll Cards – Allows employers to offer direct deposit to employees that do not have or do not want a checking or savings account. They also provide employees the benefit of using a debit card and not have to carry cash to make purchases.

So now you know a little more about this cash management stuff… is it for you and your business? Which of the above products or services made you think I have to have this or I really want to know more about this?

Cash is your business’s lifeblood. Are you keeping your business alive or are you getting to the point of cardiac arrest? Call your officer today along with your Cash Management representative to help get the blood pumping back in your business.