Modern cash management solutions

Thu, Dec 6, 2012

Financial Advice

Looking for a cash management solution for your business? A bank is obviously the best place to start—but what should you be looking for, exactly? Complete professional cash management solutions will offer you a range of options for looking after your and your clients’ money. Here’s a discussion of the kinds of services you should be examining, and the kinds of questions you should be asking about them.

Current accounts

What sort of current account deals does your institution offer to allow you to organise your day-to-day commercial banking more effectively? Automated clearing house? Sweep accounts? Lockboxes? Account reconcilement services? If you haven’t heard of these services you should investigate them, and see if any of them would be a good fit for your business.

Card services

Will your bank give you purchasing cards for your buyers and employees? What fees and conditions are attached to their usage?

Business process advice

Banks ought to be prepared to look at your processes and determine ways in which their offerings can best be streamlined and integrated within their services. Is yours?

Merchant and processing services

If your business wants to accept debit and credit cards, you will need a merchant account–banks can help with this. Pay attention to the fees charged, and take advantage of any special deals offered.

Foreign exchange

Especially nowadays with online retailing and cross-border transactions, many businesses will have to deal regularly with receiving and sending payments in foreign currencies. How does your bank make this easier?

Online services

Many banks will offer superior web services to their corporate customers, including features like allowing managers to create sub-accounts, restrict and enable access on a granular basis, logging, and the ability to send wires. Find our what your bank offers in this department, and compare it to the kinds of cash management solutions offered by other banks.

Most importantly, you need to find an institution with a proven track record, with staff who have extensive experience in exactly the kinds of issues your business faces. Such institutions (like money!) don’t grow on trees, but they’re out there, and if you do your homework and get good independent advice, you won’t go far wrong. Good luck!

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One Response to “Modern cash management solutions”

  1. Brian Says:

    Great article. Like you said, it’s very important to find an institution with a track record of success and has that has experience in the area of problems your business will likely encounter. Thanks!
    Brian´s last blog post ..Can One Still Get Life Insurance Over 80 Years Old?

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