Cash concentration is a banking solution that allows you to efficiently centralize your company funds from multiple accounts so that you can increase your investment potential and possibly reduce your need to borrow in order to grow your business. With a cash concentration banking solution, you’ll have one more tool for managing your business efficiently and in a way that positions you to focus on your growth.
What is Cash Concentration?
Cash concentration is a way for you to centralize funds from multiple business accounts into a single funding account to streamline your cash position. Deposits can be concentrated from a variety of outlying locations, including your retail offices, corporate offices or a combination. Centralizing your funds provides an organized and efficient way to control intra-company funds from multiple sources, manage your cash flow and maximize your investment potential. Detailed reporting allows you to monitor your activities and provides access to critical transaction information including where cash deposits are being collected and at what locations.
How Cash Concentration Banking Works
- Cash concentration services are accessed through our Business Online Banking platform with 24/7 access for viewing deposit and transaction activity on your accounts.
- You establish automatic transfers to move funds from your respective location accounts at designated times that meet your business needs.
- At pre-determined cut off times, we will transfer funds from your outlying business accounts via the Automated Clearing House to consolidate funds into your First Commonwealth account. This eliminates your need to manually transfer funds into your First Commonwealth account from other financial institutions and reduces your need to conduct wire transfers.
Benefits and Strategies of Concentration Banking
- Effectively manage important financial transactions from multiple locations
- Reduce risk by streamlining deposits
- Save time by eliminating the need to write checks or conduct wire transfers
- Position your business for growth through a comprehensive view of your cash on hand versus reconciling multiple accounts at multiple financial institutions
Having a strategy for your cash concentration is one piece of the puzzle when it comes to managing the finances of your business. And combined with our full suite of Treasury Management solutions, cash concentration is one step toward creating efficiencies in your business that free you up to do more of what you love – focusing on the future of your business. Contact us today to get started.
Additional Resources for Your Business
Merchant services solutions – if your business needs to accept payments, our partnership with TSYS® provides you with mobile options that include robust reporting and added fraud protection
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