Why does a business thrive? Well, first, the foundational idea must be good – whether it’s a widget, service, or innovative idea you’re selling. (And, hopefully, it’s for good as well, but that’s a different blog altogether.) However, even the best, potentially world-changing, ideas can fail if the day-to-day cash management and financial obligations are poorly managed. In fact, a recent report from SCORE showed that 82% of businesses fail due to cash flow problems.
Most entrepreneurs and small business owners are visionaries – big thinkers who recognize needs or problems in the world and set out to create solutions. These same people, though, are often not so gifted with asset management, cashflow forecasts, and working capital management. That’s where a solid business banking partner comes in. The right bank providing sound treasury management systems and services is integral for business success.
Strategize for success
A bank’s treasury services provide business owners with the strategic management of financial assets and liabilities. Serving as the financial arm of the organization, the bank focuses on assessing and mitigating financial risks, as well as optimizing resources to align with business functions and goals. The key, though, is to understand the bank is a partner in these efforts. Business owners cannot take their eye off the ball and still stay on top of their game: They must see where the money is, where it’s going, and why it’s moving the way it is.
If you’re a small business owner or entrepreneur, you can expect four primary categories of treasury products and services from your business bank:
Money management
These features help you monitor account activity with confidence, allowing you to focus on running your business well.
- Account and activity management
- Account and deposit reconciliation
- Account reporting
- Alerts
- Business mobile banking
Money movement
To keep your business moving forward, the streams of incoming and outgoing money must be convenient, secure, and trackable. Your banking partner can provide the right tools to help your business go with the flow to optimize your balance sheet.
- ACH payment and collection
- Business bill pay
- Remote deposit capture
- Domestic and international wires
Security
Cybercrime is growing at an exponential rate. Recent findings show that 60% of credit card holders have experienced fraud2, and Americans lost more than $10 billion to fraud in 20233 alone. Don’t be a victim. Your bank should offer the business security tools you need to be proactive and protect your assets.
- Account tracking
- ACH debit block
- Fraud protection to mitigate risk and loss
Access
Comprehensive online administration of your treasury operations is imperative, giving you control at your fingertips that is both convenient and secure.
- Online approvals
- Entitlement controls
- User management
Available and accessible
With the perspective that your bank is the financial arm of your business, accessibility is a must. Sure, you can’t walk down the hall for a quick risk management huddle. But you should be able to get in your car, drive down the road, and sit at the desk of a financial specialist for a deep dive into your questions and concerns.
The big-name banks may not be able to deliver. Even if there are branches near where you do business, how invested in the community is that national entity? Do they have their finger on the pulse of the local marketplace in which you operate?
The other consideration is availability. Many major banks have taken “bankers’ hours” to next-level frustrating – with branches open for only a handful of hours each business day. And even if you make it within that narrow window, it’s a tossup as to whether or not a business specialist will be (a) working and (b) free to meet with you. Too often business owners will hear, “You really need to make an appointment.” (But even with an appointment, you’ll likely have to sit and wait – time you could be spending on, well, doing business.)
So, for your treasury services, shop around for a business banking partner you can trust. Be sure that potential partner can provide all the tools you need. Confirm they are both available and accessible. And interview their staff about their knowledge of the local market and involvement in the community. It’s OK to be diligent. After all, they’ll be part of your company’s team.
As a community bank, Southern Bank is proud to partner with area small businesses and entrepreneurs with treasury services to help companies manage their financial systems. Reach out today to discover our solutions to keep your business running at the speed of business.
1 https://www.score.org/resource/blog-post/1-reason-small-businesses-fail-and-how-avoid-it
2 https://www.security.org/digital-safety/credit-card-fraud-report/
3 https://www.featurespace.com/newsroom/us-payment-fraud-rates-set-to-surge-in-2024/
