Strategic Solutions: Exploring Business Cash Management Services

February 1, 2024

Did you know that a whopping 82% of businesses fail due to struggles with cash flow management? While cash flow can be an unavoidable risk for many business owners, it needn’t be a concern. At New Valley Bank & Trust, we are here to help you successfully navigate the ups and downs with business cash management services. Read on to discover how you can keep your business thriving with insights and best practices that will transform your cash flow challenges into financial opportunities.

Understanding the Importance of Business Cash Management Services

Let’s break it down—cash management refers to the daily process of managing inflows and outflows of cash in a business. You may think this practice is only important for large enterprises, but small and mid-sized businesses can also process a substantial amount of transactions each day, making cash management an essential piece of any solid business strategy.

Effective cash management impacts foundational aspects of the business, including financial stability, liquidity, and the ability to make strategic investments. At New Valley Bank & Trust, we understand how easily changes in cash flow can make or break your business. After all, cash is typically the main asset used to fund expenses. Without sound cash management, your business could be left struggling to turn a profit or cover unexpected expenses.

That’s why our business cash management services are designed to help any size business maximize liquidity while minimizing the cost of funds. We will work with you to build a cash management strategy that enables you to navigate financial challenges, seize growth opportunities, and maintain a robust financial foundation.

Utilizing cash management services can lead to benefits like:

    1. Better decision-making
    2. Improved financial control
    3. Effective risk aversion
    4. Cost savings
    5. Boosted profits

Types of Business Cash Management Services Available

Consultative business banking and cash flow management services help businesses maintain their financial health by integrating online banking with personalized service, providing business owners with greater control over how money flows in and out of the company. Examples of these services include:

  • Cash Management Sweep: Optimize cash flow by getting higher returns on cash that might otherwise languish in your checking account.
  • Zero Balance Account: Maintain a user defined balance in subsidiary accounts to allow your business increased investment opportunities and reduced administrative expenses.
  • ACH Origination: Manage electronic payments, payroll processing, and automated transfers.
  • Online Banking Account Management: Manage bank accounts, make transfers, and monitor cash flow anywhere via a secure online banking solution.
  • Positive Pay: Protect against fraudulent activities and block unauthorized transactions.

All of these services and more are available to you today at New Valley Bank & Trust!

Best Practices for Effective Cash Management

Two of the best practices for effective cash management are monitoring your cash flow and making projections. You should always be aware of how assets are moving in and out of your business, especially as the business continues to grow. Without careful attention, fraudulent activity and mistakes can slip through, stunting profits and negatively impacting growth. Cash flow management services offer a window into your business’s daily cash flow that allows you to keep an eye on your assets without dedicating your whole day to tracking them.

Projections are another important piece of your cash management strategy. As you monitor your business’s cash flow, you may start to notice patterns that enable you to make predictions about future cash flow. Those predictions may save your business in the future by keeping you prepared for any sort of financial situation that may arise. Cash flow management services provide data and tracking capabilities that make it easy to predict future cash flow.

Get Growing with Business Cash Management Services at New Valley Bank & Trust

Backed by cash flow management services at New Valley Bank & Trust, your business will enjoy greater financial control that enables both growth and stability. To learn more about how our services can support your business’s financial success, explore our business banking products or chat with a banking specialist today!

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Strategic Solutions: Exploring Business Cash Management Services