Moving ahead in 2021: Start with a financial check-in
Last year, the pandemic ushered in new challenges for small businesses, forcing some to close temporarily, others to make changes to existing processes, and still others to pivot operations entirely.
No matter what your specific circumstances, now is a good time to check-in with your local business banker so you can review your ever-changing business needs and goals and make sure you’re taking advantage of the latest products and services designed to improve business operations.
Here are just a few:
Business accounts can vary based on the activity level in the respective accounts, and the deposit balances maintained within them. Many banks offer the ability to link accounts together, in an effort to reduce fees and provide additional services at reduced costs.
Tip: Review your account along with cash inflows and outflows and explore which accounts may be best for your business.
Lines of credit are most suited for short-term cash flow needs and should be used accordingly. Term loans, in particular, can be utilized for equipment or real estate with a longer useful life and repayment period. If you tapped your line of credit last year to buy new equipment, for example, you may want to roll some of that balance into a term loan with an appropriate repayment period.
Tip: Align your credit needs with the proper loan products to ensure you have sufficient cash flow to operate your business during the year.
Explore your online banking options, such as Webster Web-Link, which can provide instant online access to all of your accounts. You can see images of your paid checks, receive notifications about important events occurring in your accounts, and even initiate wires, ACH payments, and deposit checks directly from your office.
Tip: Look for a robust business banking platform that allows you to bank securely and efficiently — even when you’re away from the office.
The best deterrent to reduce the risk of fraud is to take steps to prevent it. For example, Webster Bank’s Positive Pay, provides daily monitoring of all checks clearing through your accounts to detect potentially fraudulent activity.
Tip: Make sure your business has highly effective fraud controls in place to protect your assets.
When was the last time you met with your banker to review your banking and lending needs? Ensure you’re making the most of your banking relationship... and learn how you can maximize available banking products and services to their fullest potential.
Let’s talk possible.
The opinions and views in this blog post are those of the authors, and are not intended to provide specific advice or recommendations for any individual. Please consult professional advisors with regard to your individual situation.
All loans are subject to credit approval.