In our rapidly evolving digital landscape, staying ahead of these threats is essential. That’s where a Positive Pay system comes in, a proactive fraud prevention tool. It detects fraudulent transactions before money leaves your account. Whether you run a large corporation or operate solo, dealing with fraud can disrupt your business.

Here’s a breakdown of how Positive Pay keeps you in control of your financial transactions and keeps fraudsters out.

What is Positive Pay?

Positive Pay is an online system that helps you and your team ensure only approved ACH transactions or checks clear your business account and stops fraudulent transactions.

How does it work?

When you set up a Positive Pay account, you’ll set an approved list of vendors with parameters for those transactions. When transactions come through your account, the system will verify that those transactions match your approved list. If it doesn’t match, you’ll be asked to review it.

You will be notified if Positive Pay detects discrepancies between your transaction records and those potentially posted to your account. You will need to review the transaction and approve or reject the payment. There are two options with Fortress Union Bank’s Positive Pay system:

• ACH Positive Pay: Businesses can enroll in ACH protection services, which protect you against unauthorized digital transactions.
• Check Positive Pay: Check fraud protection is available for businesses who still rely on issuing checks.

This is a preventative measure to help protect your business against fraudsters and cyberattacks.

Can you give an example of how Positive Pay prevents check fraud?

Let’s say Sarah runs a flower shop. She runs the business alone, so she only issues checks to her suppliers for her inventory. One day, she receives a notification from her Positive Pay system alerting her to a potentially fraudulent check presented for payment. When she reviews the alert, she sees the image of the suspicious check. The check looks legitimate, but she doesn’t recognize the name written on it, and the signature appears to be forged.

She returns the transaction with a click of a button and continues her busy day.

Can you give an example of how Positive Pay prevents ACH fraud?

Alex runs a craft woodworking business. He leads a team that makes cutting boards, frames, and signs for an online store. Most of his cash outflow is digital, automatic payments.

One morning, Alex responds to email orders and receives a notification from the ACH Positive Pay system. It flagged a suspicious transaction that appeared to be from a utility company. As he reviews the alert, he notices a few red flags. The timing was off from their typical payment, and the amount was higher than usual.

He rejects the transaction through Positive Pay, closes his laptop, and hops to a meeting with one of his team leads.

How would I use it day-to-day?

Positive Pay is designed to be simple and integrate seamlessly into your business. Its easy to access for Fortress Union Bank customers, simply log in to Business Online Banking or use the business mobile app to access the Positive Pay service.

If you’re a solo entrepreneur who can’t keep track of the books daily, this system is a second check that proactively reviews transactions alerting you when your attention is needed.

In larger companies where several transactions happen daily, Positive Pay gives your team a real-time opportunity to review abnormal transactions and streamline monitoring for your accounting team.

If you enroll in ACH Positive Pay protection, you’ll set up some guidelines about what is ‘normal’ for your business. Add companies to an approved list or block unauthorized companies. Set up transaction parameters such as amount limits, frequency, and start and end dates.

With Check Positive Pay, you’ll upload a file with the checks issued on the business account or manually enter checks in the Positive Pay system. When checks are presented to clear your account, you’ll get an alert if something doesn’t match what’s been entered so you can review and decide whether to pay or return.

Ultimately, Positive Pay saves you time by being proactive instead of reactive to fraud.

How has it helped other businesses?

Positive Pay is designed to stop fraud in any business, whether you’re a sole proprietor or a big corporation. Stacie Wolter, a fraud analyst at Fortress Union Bank, says, “Fraudsters don’t discriminate. They’re after everybody, so you will benefit from Positive Pay if you write checks or pay using ACH.”

Positive Pay is a secure and convenient service for helping fight against fraud yet it’s only one piece of a collection of services that fall under the Treasury Management umbrella. Read more about the basics of treasury management which summarizes everything from making ACH payments and payroll to receiving online customer payments, paying credit card statements and managing overall business cash flow.

Please contact Fortress Union Bank’s Business Services team to learn more about Positive Pay and other business services available — 844.238.3838.

Stories from business owners like you can give you valuable insight into your own enterprise. Listen to Dream, Plan, Live: the Fortress Union Bank podcast for stories, how-to guides, and advice from the experts at Fortress Union Bank.

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The post Businesses fight back against fraud with positive pay system appeared first on Fortress Union Bank.

Whether you run a thriving e-commerce shop or a bustling farm operation, finding the right commercial insurance partner for your business is essential.

Navigating the world of commercial insurance can be overwhelming, but you don’t have to tackle it alone. The key? Finding a trusted insurance agent can transform this process.

Here are the top four qualities you should look for when finding the best coverage for your business.

1. Personalization

There are no one-size-fits-all solutions for insurance. Even businesses in the same industry can require different insurance policies, like business vehicle protections, cyber security risks, and more.

That’s because your unique business sets you up for unique risks.

As a business owner, the last thing you need is to wait endlessly on hold to talk to an insurance provider with thousands of other clients. You need to partner with an experienced agent who can tailor business insurance recommendations for your specific operations.

An insurance partner can also help you avoid blanket policies that don’t cover the most important claims. For example, general liability insurance covers some of the most common and expensive claims, like physical damage to your business. But commercial liability insurance can protect you if a customer trips in your store or an advertising campaign infringes on copyrights.

You want to work with someone who understands you and your business to build the right coverage. As you integrate new insurance policies or change providers, look for an insurance agent who can personalize your experience and policies to you.

For more, please read our guide about business owner’s policies (BOPs) vs. custom business insurance policies.

2. Team-orientation

Any insurance, from business interruption to key-person insurance, is vital to keep your business running and protected. That’s why business owners need to consider their insurance provider part of their core team, like a lawyer or tax advisor. In this same way, you should think about hiring an insurance professional as a long-term relationship.

As you expand your protection, you want to partner with someone who can get in the weeds with your business and be on-call when you need them. Team-oriented insurance providers that actively collaborate with your business can also offer exceptional services, like proactive risk assessments, regular policy reviews, and timely claims handling.

You also want to work with an insurance provider that reflects that in their operations, like insurance agents working directly with customer service to deliver the best experience for you.

3. Translation

Other how-to blogs about commercial insurance will advise you to take stock of your risks to decide which insurance you need. But this is not secure advice.

You are certainly the expert in your business, but remember that insurance and risk are both incredibly complex. And bringing insurance into your operations, or changing insurance providers, goes beyond identifying risk for your business.

Insurance professionals are experts in spotting pain points in your business that could leave you vulnerable. And you want to work with someone who can teach you what needs to be covered, what exactly is in your policies, and how that sustains your business.

Insurance professionals focused on comprehensive learning can help you understand complex insurance terms, coverage options, and policy details in an easily understandable way and applicable to your business operations.

4. Up-to-date experts

Insurance is a fast-paced industry. Risk evolves with new technologies, market trends, and regulatory changes. You need to focus on running your business, which is why you need to partner with an insurance professional who can keep up with the changing tides.

The benefits? Up-to-date insurance providers can build customized policies based on changing risks. It’s also a competitive advantage, providing innovative coverage options and top industry insight. You’ll stay protected, even in a rapidly changing world.

Summary

Insurance is essential to your business operations, but you don’t have to figure it out alone. With the right insurance partner, who wants to get to know your enterprise, be on your team, educate you, and stay up-to-date, you can focus on running your business.

The best place to start? Contact an insurance agent. Fortress Union Bank Insurance can answer your top-of-mind insurance questions.

Post updated. Originally published May 2023.

Are you looking for more advice for protecting and growing your dream business? Listen to Dream, Plan, Live: the Fortress Union Bank podcast for more tips from the business experts in your community and at Fortress Union Bank.

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The post Finding the right business insurance partner: 4 essential qualities for comprehensive coverage appeared first on Fortress Union Bank.

Whenever you’re checking your bank account online or paying bills, you need to be extremely careful with the websites you visit and the links you click. Recklessness online may cause you to inadvertently install malicious computer software known as ransomware.

What Is Ransomware?

Ransomware is a type of software (or malware) that is specifically designed to disrupt or gain unauthorized access to your computer. It prevents you from using your computer until you pay a ransom.

There are various types of ransomware, all of which prevent your computer from functioning. Ransomware can:

• Lock you out of your entire computer,
• Prevent applications or programs from opening, and
• Encrypt files to restrict access.

In almost every case, attackers will demand payment. Once they receive the ransom, they’re supposed to restore function to your computer. If you fail to pay within a period, the attackers may demand more money.

Ransomware is widespread, and personal users and business owners must be cautious. You must be alert and protect yourself and your computers at all times.

Your personal and work computers need to be protected at all times.

Protecting Yourself At Home

Ransomware creators usually target average home users because they don’t  have the knowledge or expertise to properly protect themselves.

Luckily, you can defend yourself by following some best practices. First, let’s go over proper habits while browsing the internet:

• Avoid clicking suspicious links in emails or on social media.
• Don’t open unknown email attachments.
• Only download files from trusted sources.

You must also realize that your personal computer can be targeted at any time. Protect yourself by ensuring you have anti-virus with active monitoring installed on your computer. If you want to go one step further, install anti-malware and anti-ransomware programs.

Next, back up your data. If ransomware encrypts your files, you’ll be able to recover quickly and avoid paying a ransom. Create several backups of your files on an external hard drive or a secure cloud service. Make these backups regularly, and don’t leave them plugged into your computer. External devices are also at risk of becoming infected.

Protecting Your Business

Microsoft recently reported that the number of ransomware attacks on businesses is increasing. Attackers target businesses because companies are more likely to pay a ransom when their operations are disrupted.

Protecting your business involves more than safeguarding your personal computer with the best practices outlined above.

First, create a cybersecurity plan that outlines best practices, security tools, and your response to ransomware attacks. Remember, you not only have to account for computers but also servers and mobile devices. Anything that’s connected to the internet can become an access point to sensitive business files.

Your cybersecurity plan needs to include employee training. If your workers aren’t careful while checking email or processing orders, they can unknowingly expose computers to ransomware.

The response portion of your plan should detail the actions you’ll take following the discovery of ransomware. These can include contacting the authorities and restoring files from backups.

Finally, stay up-to-date about the latest ransomware attacks. According to Microsoft, there are many types of ransomware out in the wild. Understanding the warning signs and how these dangerous programs operate is vital to your future protection.

Get Cyber insurance

Whether you’re a homeowner or small-business owner, you may be interested in obtaining cyber insurance. Policies offered by Fortress Union Bank Insurance can help protect you from ransomware and other online threats and will provide peace of mind. You aren’t invincible online, so you must take precautions and protect yourself before your personal life or finances become compromised.

The internet, for all its benefits, also comes with threats like ransomware. If you aren’t careful, your personal and business computers and files may be held hostage. But if you follow best practices at home and in your business, you can help protect yourself.

Request a quote

Post updated. Originally published January 2017

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The post What is ransomware and how to stop it appeared first on Fortress Union Bank.

In a fast-paced business world, making big and small decisions can feel overwhelming. No business operates in a bubble, whether you’re a seasoned entrepreneur or an aspiring founder. Community is an essential key to navigating the complexities and challenges of the dynamic business landscape.

Here are five practical ways to uncover honest business advice by networking and building community.

1. Reach Out to Leaders You Admire

Being a business owner can feel isolating, especially when you’re launching your new venture and big decisions are on the line. Networking can give you mentorships, valuable insights, and potential new opportunities in your enterprise.

Brent Donner, owner of DLC Manufacturing in New Ulm, Minnesota, says tapping into leaders in the fabrication industry across the country helped him build his consulting business – many became his clients. (Hear how Brent built his exceptional company by making tough choices and mentoring his team here.)

You may already know someone whose career you look up to. They don’t have to be in the same industry as you. They may have an outstanding work ethic or an exciting business model.

But maybe you’re thinking of someone you don’t personally know. Cold contacting (reaching out to someone you don’t know) can be intimidating, but put yourself in their shoes. Wouldn’t you feel flattered if someone emailed you saying they admire your work and wanted to connect?

Keep the message short by introducing yourself and your business, explaining why you love their work, and making a concrete request to connect over the phone.

It’s understandable to be afraid of rejection or feel like you can’t offer something to the relationship. But remember that networking is mutually beneficial. It fosters collaboration and showcases that genuine admiration is valuable.

2. Join Your Local Chamber of Commerce

A Chamber of Commerce promotes economic development for areas and neighborhoods by supporting local businesses. There are a lot of ways to get involved, depending on where you live.

You can attend networking events and sign up for education programs, like a Lunch and Learn or a panel conversation with area experts. Chambers of Commerce usually have member directories available to the public so that you can find recommendations for local services and partnerships.

You can also learn more about specific business changes in your community, like new commercial buildings or opportunities to promote your business.

You can explore membership levels that fit your business’s needs, like exclusive events or more visibility for the company. However you engage, becoming a local chamber of commerce member is an investment to connect with your community and advocate for businesses.

3. Tap Into Expert Resources

There are endless books, blogs, and podcasts for influential business advice. But instead of finding blanket advice, it can be more valuable to listen to stories from business owners about their successes and failures. You can also look for how-to guides and game-changing philosophies to ensure your business thrives.

If you’re looking for general news, tips, and business guides, the U.S. Small Business Administration has thousands of reliable articles for small business owners. You can also find books and online publications that focus on your specific industry – but remember to research the qualifications and background of everything you read.

Amanda Nelson, owner of Sioux Fall’s Blue Haven Barn and Gardens, says digging into research as they financed their businesses was essential for their launch.

Taking on loads of new information can be overwhelming. Set aside dedicated learning time for your business and bring specific questions. It will also help you to take notes while reading or listening and create action plans based on your learning.

4. Find Business Communities Online You Align With

Cultivating communities online can also be a great way to connect with people in your industry, collaborate with people worldwide, and grow your business. Creating behind-the-scenes and “Day in the Life” content on TikTok, Facebook, and LinkedIn can also put your business in the spotlight. You should also watch for webinars or virtual events within your industry.

You can also look on industry-specific platforms for links to Facebook groups, Discords, and forums. You’ll be able to engage in conversations and share resources with a community that understands your business’s unique challenges. Remember: these are collaborative, community spaces where you need to ask questions and give advice.

5. Cultivate Outstanding Business Partnerships

Every business owner needs partners to get your new enterprise off the ground. Tax advisors, lawyers, insurance partners, and banks are a part of your core team that sets you up for success.

Choose partners that will support the entire health of your business. Find people you feel comfortable asking questions with and have a business-minded approach to their work.

Jackie Thorson, owner of Thorson Heating in Sioux Falls, says choosing Fortress Union Bank as her finance partner meant she partnered with financial experts who think outside the box and root for her success.

Remember: this is a long-term relationship for your business. Relationships, from your community network to your business team, help set you up for many years of success.

Stories from business owners like you can give you valuable insight into your own enterprise. Listen to Dream, Plan, Live: the Fortress Union Bank podcast for stories, how-to guides, and advice from the experts Fortress Union Bank.

The post 5 ways to find real business advice for new entrepreneurs appeared first on Fortress Union Bank.

That’s why you need to have tools in your operations that expedite your work, especially when it comes to finances.

Treasury management is a set of tools and services that give you control, freedom, and flexibility in your business’s finances. They help you manage inflow (money coming in, like revenue), outflow (money going out, like payroll), and security that prevents fraudsters from attacking your business.Treasury management tools are essential for all operations, from farmers, small business owners, corporations, and manufacturers.

Here, we’ll go through common business problems and how different treasury management services can help you streamline your financial strategy so you can focus on running your business.

My customers use different payment methods with my business: credit cards, cash, and checks. How can I consolidate and manage this cash inflow efficiently?

Your customers interact with your business in unique ways, whether you’re selling products at the farmer’s market, running a bike shop, or teaching yoga classes. There are tools that can optimize income for your business, however you take in revenue.

Your customers can pay you at a physical check-out with merchant card services. You can accept ATM/debit, credit, and gift cards with a point-of-sale service that works directly with your business accounts. With merchant card services, you’ll have access to easy-to-read statements, fraud identification, and support from Fortress Union Bank’s dedicated team.

If you run your business or organization online, web payments allow you to accept payments and donations from your website safely and securely. Fortress Union Bank’s web payment tools are customized to fit your branding, connect directly to your business accounts, and allow you to export data to your accounting software.

Most customers don’t use checks, but if you work with another business, you’ll likely receive payments with a check. Fortress Union Bank’s electronic check scanners work with your PC to deposit checks online quickly and easily. You’ll also receive full credit for your deposits if you scan during a business day. With electronic check scanners, you don’t need to rely on making bank runs to have access to cash in your business.

With Fortress Union Bank’s treasury management tools, you can access all-in-one support from our expert team in one place.

How can I speed up the processing of business payments, like bills and payroll?

Paying for your business expenses individually is time-consuming and not cost-effective. In a fast-moving business world, you need up-to-date information about your business accounts and fast ways to transfer funds. Cash management systems allow you to automate payments from your business online at your convenience.With Fortress Union Bank, you’ll use ACH originations to easily transfer funds electronically for employee payroll, automate bill payments on your schedule, and send federal taxes. These funds will transfer directly to the intended account, eliminating the risk of lost or stolen checks.

You can also use wire transfers through your business account to quickly transfer funds, allowing you to move money within hours of sending it.

I want employees to be able to make purchases for the business, like pay for gas and make online orders. What are my options?

 There are a few options for businesses that want to authorize employees to make purchases. One way would be to give your employee a debit card, but that employee has to be an authorized signer on the account. Authorized signers can sign checks, make withdrawals, and check balances.

But you can control spending you delegate to employees with business credit cards. Fortress Union Bank’s Visa® Business Credit Cards allow you to give employees permission-based access to those cards, which means you can decide what employees can spend on, like gas.With Fortress Union Bank’s business credit cards, you can choose cards that fit your business, like community cards created specifically for non-profits. They also have perks like cash back, low introductory rates, and flexible rewards. Best of all, there are no fees for additional cards.

Business credit cards help you save time – you don’t have to be the only person making purchases, and you eliminate the hassle of reimbursement.

Are there treasury management tools that protect against fraud?

All tools help protect against fraud by putting you in complete control of how money moves in and out of your organization.

First, with Fortress Union Bank’s treasury management tools, you’re reducing the number of vendors for different tools, ensuring the utmost protection for your business’s finances under one umbrella.

Fortress Union Bank has free tools with your business account, like positive pay, which allows you to control what vendors can process payments through your account, and stop pay, which prevents fraudulent or unauthorized transactions from processing. Multi-factor authentication also protects your funds from hackers and fraudsters.

Fortress Union Bank’s dedicated team of experts is also on the front lines of the latest fraud tactics. They are available to work with you on answering security questions and protecting your business so you can focus on making your business thrive.

Ready to streamline your business finances? Reach out to connect with one of Fortress Union Bank’s treasury management experts today.

  Contact Us

Looking for more advice for growing your dream business? Listen to Dream, Plan, Live: the Fortress Union Bank podcast for more tips from the business experts in your community and at Fortress Union Bank.

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The post Choosing the best treasury management services: FAQs to guide your decision appeared first on Fortress Union Bank.

The more financial tools a business owner has at their disposal, the more efficiently they can tackle all treasury management tasks.

Learn everything you need to know about treasury management and how Fortress Union Bank can help your organization flourish in this article.

What Is Treasury Management?

Before jumping into how to manage your treasury in the most effective way, it’s vital you fully understand what this term means.

Treasury management is the number of financial processes and responsibilities of a business that help to optimize cash flow, liquidity and funding. A sturdy treasury management plan can help businesses determine their working capital requirements and establish a method to secure adequate funding. This plan is also part of an organization’s risk management strategy to keep finances from dipping too low.

Treasury Management vs Cash Management

You may have also heard the term cash management and been confused with how it aligns with treasury management. These two terms are actually used interchangeably to refer to the various fiscal responsibilities of a commercial operation.

A Treasury Manager’s Role

While not every organization will have a designated person to run financial operations, some businesses have a treasury manager to help manage cash coming in and out of the doors. The typical job of a treasury manager includes:

• Minimizing financial risk: Knowing what vulnerabilities your organization may be open to is a huge part of keeping your employees and business assets safe. A treasury manager will make decisions that minimize risks and reduce potential problems. According to Deloitte, risk management is considered the most critical mandate assigned to treasury managers.
• Liquidity management: Treasurers also keep an eye on your business’s financial obligations to ensure the cash entering and exiting your doors meets your required payment amounts.
• Forecasting cash flow: To keep your organization successfully moving forward, a treasury manager predicts the financial status of your business over a specific period of time.
• Trade finance: Most companies trade with third parties. It’s their job to make less risky deals and keep practices safe.
• Corporate finance: Treasurers enable company growth by making decisions informed by relevant financial data. By analyzing insights, they can allocate funds where the most value will be delivered.
• Organizing payments: Lastly, leaders in the treasury department are responsible for creating and tracking a payment process.

What Are the Available Types of Treasury Management Services?

Enhance treasury management practices by using tools that save time and improve operations, leaving small business owners with more time to accomplish other important tasks.

Here are the treasury management services available through Fortress Union Bank:

Cash Management

Cash management gives you more control over managing your cash with flexible features like the ability to process ACH transactions, debits and credits, payroll and wires. Small businesses can complete payroll faster and with fewer expenses with direct deposit. Pay your employees directly online, which saves you time and money in the long run.

Cash management allows you the freedom to move your money where you need it, no matter what. This not only lets your customers pay you automatically, but it enables you to pay vendors and federal taxes as well.

With Fortress Union Bank Cash Management services, you get:

• Instant notifications and alerts from your computer or web-enabled device.
• Automatic scheduling and business day cut-off times to manage your funds.
• Protection from unauthorized account access with dual control authorization.
• Dedicated help from our team of business specialists.

Online Deposit

If your small business handles a large volume of checks, our online deposit capabilities will come in handy. Use a check scanning software that allows you to upload them to a secure website location to process transitions quickly, efficiently and safely.

Our online deposit services help you:

• Reduce errors that can arise with manual check processing.
• Save digital images of the check so you can safely destroy the paper copies and keep online version for your records.
• Reduce financial risk by always having funds available through quick check deposits.

Web Payments and Merchant Cards

Web payments and merchant card services ensure your organization can accept various forms of consumer payments. After all, customers rarely pay with physical checks (as opposed to business vendors, who may be more apt to use checks), instead relying on debit cards, credit cards and digital wallets.

Web payments can help your business improve its e-commerce strategy. As more customers flock to online buying, your site will need to be fully equipped to accept digital payments. Web payments from Fortress Union Bank can:

• Streamline the online checkout process for customers.

Business Credit Cards

A small business may struggle to sustain itself running entirely on a cash budget. Credit has a central place in capital planning, and many businesses leverage credit cards in regular operations, whether to buy inventory, make spot purchases or plug short-term cash flow gaps.

In your search for a suitable business credit card, you should focus on:

• Interest rates.
• Credit limits.
• Daily limits.
• Annual fees.
• Cashback rates.

Fortress Union Bank offers a wide selection of Visa business credit cards to choose from, delivering free online expense reporting, zero fees for additional employee cards and 24/7/365 cardmember services.

Sweep Accounts

Some business owners may be unfamiliar with sweep accounts, which can be a major advantage for companies.

It works like this:

• A business owner decides a minimum range for their primary operating account.
• At the end of the day, any funds over that minimum are swept into a separate account.
• There, the money can earn interest, be invested in stock or a money market account or be used to pay down an existing credit line.
• If the operating account is under the minimum, funds are automatically swept back in.

A sweep account it’s a way for owners to automate what would otherwise be a tangle of time-consuming transfers, giving them full opportunity to capitalize on short-term investments.

Simple Account Transfers

Any way to make account transfers more efficient can return valuable time and labor resources to small business owners. Traditionally, to complete an account transfer, you must visit a branch and write out deposit slips for each transfer.

However, with cutting-edge cash management solutions from Fortress Union Bank, you can significantly simplify the transfer process. Initiate a transfer online if the accounts involved are with the same bank as your principal business checking account; plus, you can complete ACH transactions quicker without painstakingly tracking full numbers and routing information.

Fraud Prevention

You don’t want to mess around when it comes to your money, so be sure your business has ample fraud prevention tools it can use to protect its finances.

Fortress Union Bank understands the importance of robust fraud prevention, providing you with defensive measures like:

• Positive pay: Match presented checks to previously authorized checks to quickly verify authenticity.
• Stop pay: Cancel payment on any number of suspicious checks at once.
• Multi-factor authentication: Require multiple log-in steps, including username, password and registered token or security question.
• Dual control: Fortress Union Bank offers dual control for all ACH and wire transactions as an added security precaution.
• Permission-based access: Decide exactly what data privileges each employee with access to banking services has.

Benefits of Treasury Management

Treasury management can help your organization’s cash flow by using funds appropriately and ensuring that short-term obligations are met. It’s also a big part of risk management as it carefully manages a company’s vulnerabilities and exposures to foreign exchange and interest rate risks. When an organization has more money and less risk, it is more profitable overall.

Treasury management solutions can give business owners or treasury managers more control over their company’s money by increasing efficiency and cost savings. These resources also provide more detailed information and data to help decision-makers make better choices about allocating resources.

Ready To Take Your Treasury Management to the Next Level?

Fortress Union Bank has numerous treasury management products and services that can help your business manage financial tasks more effectively and efficiently than ever before. Contact us today.

Post updated. Originally published February 2021.

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The post What is Treasury Management? Understanding its benefits, functions and more appeared first on Fortress Union Bank.

But, if a person is making a transaction like withdrawing a large sum of money or depositing a massive check into their account, it’s important for the financial institution to ensure that this person is safe and in the right state of mind.

If you’ve been asked about particular actions from a banker in the past and didn’t understand why, or if you’re hoping to better understand how your bank operates, you’ve come to the right place. Let’s look at why it’s important for bankers to ask patrons questions and discuss the typical types of queries they may require.

Why Banks Ask Customers Questions

First and foremost, it’s important for people to understand that the primary goal of asking bank users questions about unusual transactions is to keep them safe. Typically, bank employees ask these probing or detailed questions when a customer makes a request that seems unusual based on past activity, like wiring a large amount of money.

A banker’s intent is to help them avoid losing funds due to fraud and scams. It’s never meant to pry or judge, but to protect customers and their money, similar to a doctor asking medical questions during an exam or procedure.

On top of protecting users, all financial institutions have a legal duty to ask questions to ensure there are no unlawful issues or money laundering occurring within their branches. A financial professional would never assume illegal activity is occurring. But, if a problem does arise, then the bank must be held responsible for a situation that could have been avoided, often resulting in fines and penalties. Customers trust banks with their money, and, in return, the bank must be able to trust that nothing unpermitted is taking place.

What Types of Questions Do Bankers Typically Ask?

Bank professionals generally only ask customers questions when a service requested seems out of the ordinary for that particular individual’s history. Most often, wire and cash exchanges are the common cause for questioning.

While these questions may seem overly personal, it’s part of the banker’s job to look out for their customers’ best interests, including the protection and usage of their assets.

If a customer is actually put in a difficult situation and is the victim of coercion or a scam, these types of conversations would be an opportunity for the banker to help protect this person and their money.

Fortress Union Bank Has Your Back

At Fortress Union Bank, our employees are trained to identify weird activity or concerning actions and handle them to protect the patron and their financial assets. We work to ensure every person has the support they need against scams, blackmail or any other compromised situation.

If you’d like to learn more about the security protocols we uphold or have a conversation with one of our employees, contact us today

Visit our Security Center

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The post Is your banker asking questions? It’s for your own protection. appeared first on Fortress Union Bank.

Continue reading to learn more about what cash flow is and how to improve your small business’ profits.

What Is Cash Flow and Why Is It Important for Small Businesses?

Cash flow is the financial heartbeat of your small business, signifying the net amount of money and assets that circulate in and out of your operations.

Let’s break it down: “Outflows” refer to the money you spend. These are your operating expenses — everything from salaries and rent to utility bills and supplier invoices. On the other hand, “inflows” signify the funds you earn. These come from sales, accounts receivable and other income-generating activities like asset sales or investments.

That said, your company’s worth isn’t solely dictated by its revenue or even its net income. Instead, the spotlight is on your ability to consistently generate a positive cash flow and, importantly, maintain a long-term free cash flow.

But what does free cash flow mean? It’s the leftover money after you’ve paid off your capital expenditures — such as equipment or property costs — as well as your day-to-day operating expenses.

This remaining capital is what you have on hand to grow your business, be it through reinvestment, saving or distributing funds to shareholders or owners.

Now, why is robust cash flow management so pivotal? For one, it allows you to catch potential financial problems in their infancy. Suppose you notice a downward trend in your cash inflow or an unexpected spike in operating expenses. With effective cash flow management, you can address these issues promptly. And given that a Xero study shows about 9 out of 10 small businesses face at least one month of negative cash flow per year, this is not an area to overlook.

Moreover, knowledge of your cash flow also equips you for sound future planning. When you know the volume and timing of your inflows and outflows, you’re better positioned to make strategic decisions.

• Should you invest in a new product line?
• Is it the right time to hire more staff?
• Can you afford to offer more competitive payment terms to your customers?

These questions and more become easier to answer. Beyond short-term and long-term planning, understanding cash flow influences other financial aspects like your credit score, which plays a role in securing business loans or credit. It also affects your working capital, which is essential for daily operations and can influence how you approach payment terms with vendors or clients to maintain a healthy cash position.

Signs Your Cash Flow Needs a Health Check

When your cash flow is running smoothly, so are your operations. But if you’re experiencing certain symptoms, it’s time for a financial health check. Here’s how to spot the warning signs:

• Stagnant inventory: An increasing amount of unsold stock indicates slow sales and could point to upcoming cash flow issues.
• Delayed payments: If your accounts receivable age past their due date regularly, you’re missing out on vital cash inflow.
• Frequent overdrafts: If you find yourself frequently tapping into your overdraft protection, it’s a clear sign that your cash outflows are overtaking your inflows.
• Declining revenue: A sudden or gradual decrease in revenue should sound alarm bells for your cash flow situation.
• Rising debt: If you’re borrowing more to cover operational expenses, your cash flow is inadequate to meet your financial obligations.
• Missed opportunities: If you’re passing up beneficial opportunities like bulk purchasing discounts because of low cash reserves, you’re likely compromising future growth prospects.

External Factors Affecting Cash Flow

Sometimes cash flow issues aren’t a product of what’s happening within your business; they can also be influenced by a host of external factors. Understanding these dynamics is essential because it can help you better prepare and even leverage them to your advantage. For instance, market conditions can have an outsized impact on your cash flow. Economic downturns or industry-specific slowdowns lead to reduced consumer spending, affecting your sales and thereby your cash inflow. In contrast, favorable economic conditions can result in increased sales, but they can also come with inflated costs for raw materials or labor.

Another critical external factor is the regulatory environment. Changes in tax laws or new industry regulations can add unanticipated costs that have to be met promptly, affecting your cash flow. Compliance really isn’t optional, and failing to meet new standards can result in penalties or disruptions that could cripple your business. Staying abreast of legislative changes in your industry is, therefore, essential. Just as internal auditing can help you pinpoint inefficiencies in your operations, keeping track of regulatory shifts can prepare you for changes that could impact your financial health.

Lastly, never underestimate the power of consumer behavior and the competitive landscape. Changes in consumer preferences can happen swiftly, and if you’re not agile enough to pivot, you may find yourself stuck with a huge amount of unsellable inventory. Similarly, new competitors entering the market can disrupt pricing strategies and customer loyalty, affecting your revenue and cash flow. The key is to be adaptable and responsive. Make use of market research and customer feedback to stay ahead of trends rather than just responding to them.

Tips for Improving Small Business Cash Flow

You may think having a cushion of cash on hand is a given, but you’d be surprised how many businesses overlook this crucial buffer. So let’s get one thing straight: No matter how buoyant your positive cash flow appears today, emergencies are never on the calendar. Create a cash reserve and safeguard it like you would your business reputation.

But treasury management also involves a nuanced understanding of your cash inflow and outflow. These two entities must shake hands in a timely fashion for your business to run smoothly. Let’s get into the specifics.

1. Keep cash on hand

Having cash reserves provides strategic flexibility. Unexpected opportunities, such as a prime investment or favorable bulk purchasing conditions, could present themselves. A strong cash position empowers you to seize these without hassle. Plus, a healthy cash flow improves your credit score, making future financing activities more accessible.

2. Manage your accounts receivable

You’ve provided a service or product, and now it’s time to get paid. But your customer’s timeline for settling invoices might not align with your accounts payable schedule. Solution? Speed up your accounts receivable. Implement a policy to collect receivables before payables are due. Consider using accounting software that allows you to track and automate this process. By doing so, you mitigate the risk of finding yourself in a cash flow crunch due to late payments or outstanding invoices.

3. Invoice promptly and accurately

How soon do you send out invoices after delivering a service? If the answer is anything other than “immediately,” you’re unwittingly contributing to potential cash flow issues. The earlier you invoice, the sooner you can bring cash into the business. Furthermore, make sure that your invoices are crystal clear and accurate. Any ambiguities could lead to delays in payment, affecting your cash flow negatively.

4. Smart inventory management

Holding too much stock can tie up cash that could otherwise be used more effectively. Conversely, running out of stock risks losing sales and, by extension, cash inflow. Therefore, an efficient inventory management process is non-negotiable. Using technology, such as inventory management software, can help you get real-time insights into your stock levels. This ensures you can fulfill orders while keeping inventory costs low, thus optimizing your cash flow.

5. Negotiate with suppliers

Your relationships with suppliers are a two-way street. You need them as much as they need you. Use this mutual dependency to negotiate favorable payment terms. Perhaps you could arrange for a more extended payment period during your business’s lean seasons or negotiate for discounts for prompt payments. Either way, the goal is to align your accounts payable with your cash inflow, contributing to effective cash flow management.

6. Leverage financing options

Sometimes external funding is necessary to bolster your working capital and improve cash flow. Various financing options can help, such as invoice financing. Another option could be securing a business line of credit, offering you the flexibility to borrow funds up to a certain limit, as and when needed.

7. Adopt cash flow forecasting software

If you’re serious about cash flow management, cash flow forecasting software is a tool you shouldn’t overlook. These platforms offer you insights through cash flow projections, helping you anticipate the future needs of your business. Predictive analytics can reveal trends and offer actionable recommendations, taking the guesswork out of financial decision-making.

8. Regularly review your financial statements

A firm grasp of your income statement, cash flow statement and balance sheet offers you a 360-degree view of your financial health. Regularly reviewing these financial statements can highlight trends, show the effectiveness of recent changes and point out areas for improvement. This is essential for making informed decisions that positively impact your cash flow.

9. Diversify revenue streams

Don’t put all your financial eggs in one basket. Diversifying revenue streams safeguards against significant hits to your income. This can be especially useful if your business is seasonal. Passive income streams, such as franchising, licensing or online courses related to your business can supplement your regular income, offering more consistent cash inflow.

10. Optimize pricing strategy

It may seem counterintuitive, but sometimes increasing prices can improve your cash flow. Conduct market research and competitor analysis to gauge your pricing strategy’s effectiveness. If you find that you’re undervaluing your goods or services, a price increase may be justifiable and could significantly boost your revenue. Be transparent with your customers about the change, and emphasize any added value or improvements to justify the new pricing.

How Fortress Union Bank Can Assist Your Small Business Cash Flow Management

We get it — you’re juggling countless responsibilities every day. That’s why we’re here to offload some of that weight from your shoulders, particularly when it comes to handling your finances. You see, at Fortress Union Bank, we’ve mastered the science and art of cash flow management, and we’re eager to apply this expertise to your unique business needs.

Let us help you with your cash flow management so you can focus on other crucial aspects of your business without financial stress. Interested in creating a more financially secure and prosperous future? Reach out to one of our Fortress Union Bank employees and let’s chart the course together.

Post updated. Originally published April 2020.

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Our Dream Big series introduces you to savvy entrepreneurs who have built their businesses from an idea to an innovation. We’re chatting with them about how they started their businesses, their steps to make them grow, and essential advice to future business owners.

Did you know that more Americans than ever are embracing their entrepreneurial spirit? Start-ups are surging, according to the latest census data. This trend is driven by a variety of factors, from people seeking financial independence to evolving work philosophies.

But, for aspiring entrepreneurs, lack of experience can be a barrier to entry.

Seven years ago, Amanda Nelson was at the same crossroads. But she decided to leave her job in banking to open a wedding and event venue with her husband. Today, Amanda’s vision has blossomed into Blue Haven Barn and Gardens, home to three stunning event buildings. It’s one of Sioux Falls’ most sought-after wedding destinations.

What does establishing and growing a career in a new industry take? Here, Amanda shares her five secrets to pivoting careers and building a thriving dream business.

You Can Start Your Dream Business Right Now: 5 Lessons from Amanda Nelson, Blue Haven Barn and Gardens in Sioux Falls

1. Get excited about changing careers.

Amanda grew up with a family with side hustles and businesses, inspiring her to start her own enterprise someday. She studied Business Administration at the University of South Dakota. Later, while working full-time in banking, she earned her Master’s in Business Administration from the University of Sioux Falls.

But as she rose through the ranks of the finance world, Amanda still had her mind set on finding a niche to start a business.

She advises future entrepreneurs to keep their eye on the ball but take lessons from working in other industries. You may have a colleague with an outstanding management style, or you may follow a company with a specialized market. Take note of successes around you for your future entrepreneurial endeavors.

2. Keep your eyes open for opportunity.

A decade ago, when Amanda and her husband got married, they realized there was a scarcity of wedding venues in Sioux Falls. After traveling the country for her friends’ weddings, she was awe-struck by beautiful, stand-alone venues dedicated to hosting dreamy wedding destinations.

The idea of a rustic barn venue just outside Sioux Falls began taking shape. Amanda pictured a venue that was so beautiful that couples had to say yes – high ceilings, a tall balcony, and green pastures. She started crunching numbers and sketched out a business plan. “We thought we could do it on the side, and that didn’t happen,” Amanda remembers. “It didn’t take long for me to quit my full-time job, and then we just kept expanding and doing the things we love.”

Business ideas are abundant if you keep your mind open. Amanda says she never expected to be in this industry, but her instinct guided intelligent business decisions.

3. Take stock of the skills you already have.

Before Blue Haven Barn, Amanda says she hadn’t worked in the wedding industry. But she says three skills propelled her success in the new business. First, Amanda’s work in banking gave her plenty of experience with numbers. Second, as a bank manager, she had outstanding interpersonal communication skills. Finally, Amanda and her husband were willing to jump in and help wherever needed, from filling in for dishwashers to training staff one-on-one.

“Josh and I are extremely hard workers,” Amanda says. “We’re not afraid to get dirty and bus dishes and do things like that. I think it helps a lot that we put our own sweat into the business.”

Everybody has skills that can boost success in another industry. As you develop your new business, assess what strengths and expertise you can bring to your new business. That will also help you learn where to bring in new partners.

4. The key to team management.

Blue Haven Barn has five full-time staff members and over thirty part-time banquet staff. In a fast-paced industry that changes daily, Amanda is committed to engaging and supporting every crew member.

How? She frequently sends surveys, hosts employee appreciation and bonding parties, and keeps everyone connected through newsletters and text groups. Amanda also has a special weekly award called “You Got Caught.” When employees get caught going above and beyond their work during events, they give out gift cards to thank them for their work.

“I have such a great staff,” Amanda says. “They’re trained well, I trust them very much, and I get awesome feedback from our clients.”

Amanda encourages business owners to find unique ways to build up their teams. When owners express gratitude and recognize their staff’s efforts, it boosts job satisfaction, increases productivity, and builds an enjoyable work environment.

5. Dream big, expand wisely.

Blue Haven Barn and Gardens started as one venue in 2016, but as the business grew, Amanda and her husband expanded their property. The Atrium at Blue Haven, a 500-person venue with an award-winning, in-house chef, opened in 2020. And this year, they transformed a photography studio on their property and opened a third venue called The Retreat. This building hosts micro-weddings and events for less than 100 people.

Amanda has partnered with Fortress Union Bank at every step of her business expansion. The Sioux Falls team is proud to support and finance Amanda’s booming business. And there’s no end in sight for Blue Haven Barn’s growth.

“There’s so many different things that we could do out here,” Amanda energetically says. “And every day, there are ideas that pop into my head.”

Looking for more advice for growing your dream business? Want to hear more about Emerald Hills’ rising success? Listen to Dream, Plan, Live: the Fortress Union Bank podcast for more tips from the business experts in your community and at Fortress Union Bank.

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Are you a bike enthusiast? A plant lover? A fitness fiend? For every hobby, there’s a business that supports it. That means you can turn your favorite pastime into a flourishing business.

Recreation businesses are a fast-growing corner of commerce. Picture a cookware store that doubles as a culinary school or a climbing gym that builds strength and community. This wave of entrepreneurship has been huge in the past decade, with people of all ages turning their hobbies into fulfilling careers.

Randy Rohlfson built his career on recreation. He owns and manages Emerald Hills Golf Course in Lake Okoboji, Iowa. He is personable with everyone he meets and dedicated to sharing the sport. That combination led to almost constant growth for Emerald Hills. Today, Randy proudly says the course is busy every weekend, and every golf league is at capacity.

With 31 years in the business, Randy is opening his strategy book for current and aspiring entrepreneurs in recreation. How do recreation businesses grow? What are the strategies for managing these enterprises? And what does it take to lead a business based on play?

1. Be prepared for the good and bad times.

Randy initially bought Emerald Hills with investment partners in 1993. He said this was a positive experience, especially in the early days as young managing partner.

But shortly after investing, catastrophic floods limited Emerald Hill’s golfing season for two summers. Then, two years after that, their clubhouse burned down.

“Well, there wasn’t much choice,” Randy remembers. “We had to rebuild because we were all into it do too deep now to think, ‘Well, let’s just get out of it.’ Then we would’ve lost everything.”

Emerald Hills came back bigger and better than ever. Randy is still grateful for his early partners’ advice and financial support. Emerald Hills has been smooth sailing ever since, but it’s still a seasonal operation. That’s why Randy is grateful to work with Fortress Union Bank for business lines of credit and operation loans in winter.

Ultimately, no business is immune from bad times. Still, Randy says every business owner should rely on outstanding partnerships to prepare for the best and worst-case scenarios.

2. “Smile, and make their day.”

The golf season typically lasts from late spring to fall, meaning most of Randy’s employees are seasonal. But he is proud to have a friendly, welcoming work environment that his staff wants to return to.

“That is something that you don’t see in a lot of places, and that’s what I kind of want to hang my hat on at Emerald Hills,” Randy says. “We want to be friendly and promise everybody that walks through the door a fun, good day. I gotta pass that on to all of my employees.”

Cultivate an employee culture where everyone is passionate about your work and authentically engages with your guests. Randy says this is central to influencing the community you build around your business.

3. Build a community with passion and education.

Randy’s office is filled wall-to-wall with photos of tournaments and junior golf camps at Emerald Hills from their first summers to now. Those programs are what he’s most proud of when he looks back at his career.

“I used to call junior golf the future of golf, but for me now, it’s the present of golf because so many kids that were on those early pictures are now my full members,” Randy explains.

Use your passion and dedication for your business to fuel its growth – it pays off in the short and long term. It will also make you an enthusiastic teacher for new people joining your community.

4. Embrace your multi-hyphenate job.

Recreation businesses often have multiple revenue streams. Think about a book store that hosts author talks and classes. It’s like a three-in-one business operation.

That’s why, at Emerald Hills, Randy says he wears a lot of hats during the day.

“I have evolved into a guy that wears seven or eight different hats every day,” he explains. “I’m teaching, club fitting, doing a group lesson, organizing a ladies’ day and checking in a hundred or so members, running and scoring a men’s league at night, and maybe selling a set of clubs in the middle somewhere.”

Randy says being the person who does everything is par for the course in business ownership. But in recreation businesses, you need to be the expert in every part of your operation and jump in whenever needed.

5. Know where your business can put its best foot forward.

Emerald Hills offers a golf course, a snack cart, a bar, classes, and a pro shop. But there’s one thing most golf courses have that Emerald Hills does not: a restaurant.

“We have a very nice clubhouse, which does not include a full-fledged restaurant, which I’ve chosen through the years,” Randy says. “A lot of country clubs do, where you sit down, order off a menu, and take two and a half hours to eat. We are not that kind of place.”

There are two reasons Randy says Emerald Hills didn’t expand into a restaurant. First, there are over seventy eating options in the Okoboji area. Instead of vying for a share of that market, Randy strategically decided not to compete. Second, he wants Emerald Hills to be a place for all golf enthusiasts. So, instead of a restaurant, they offer “golfer’s food” at the snack bar – hot dogs, hamburgers, ham and cheese sandwiches – to get their guests off to the next tee.

Understanding where to channel your energy for optimal business and community growth is at the heart of success. For Randy, recreation business owners should stay focused on the mission of their business. Evaluating where your business can be its best is essential for carving your business’s identity and scaling.

Looking for more advice for growing your dream business? Want to hear more about Emerald Hills’ rising success? Listen to Dream, Plan, Live: the Fortress Union Bank podcast for more tips from the business experts in your community and at Fortress Union Bank.

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