A portrait headshot photograph of Doug Ladenburger smiling in a dark navy blue suit and multicolored tie
Doug Ladenburger
Sr. VP, Director of Treasury Mgmt. Svcs., Northrim Bank
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Treasury Management: Accelerate Collections, Control Disbursements
By Doug Ladenburger

hile economic conditions have improved, challenges with supply chains, shipping, and labor linger. At the same time, fraud attempts and cyber security attacks show no sign of slowing.

Businesses of all sizes and from all industries should leverage every opportunity to address these ongoing challenges. Treasury management services from your financial services provider can help you run your business more safely and efficiently.

Treasury management services can encompass collections (receivables), payments (disbursements), information reporting, and liquidity management. Needs will vary by company size and complexity, but every business should consult with their financial services provider for a customized evaluation of their individual business needs.

When possible, leverage digital payments to automate the accounts payable process, mitigate fraud risk, and significantly reduce the costs associated with accounts payable.
For smaller businesses, a business checking account, online banking, and mobile access may be sufficient. However, as your business grows, your banking needs will become more complex and treasury management can assist you in creating a customized banking platform to meet your specific needs. Here’s how they work:

Collections/Receivables: Accelerate the collection of payments by automating manual, paper intensive processes to clear deposits as quickly as possible. Use remote deposit capture so you can electronically scan and deposit checks into your bank account, eliminating the need to make a trip to the bank. Additional options include mobile deposit; ACH, or Automated Clearing House, transfers; merchant services; and lockbox, all of which simplify paper processes and free up your time and valuable resources.

Payments/Disbursements: Control the timing and method of outbound payments to maximize your cash position. When possible, leverage digital payments to automate the accounts payable process, mitigate fraud risk, and significantly reduce the costs associated with accounts payable. Alternatives to check payments include ACH, commercial cards, single-use virtual cards (vCards), and bill pay. Gaining in popularity, an integrated payables service would allow you to consolidate all payment types (check, ACH, card, wire) into a single automated payment process and file. Regardless of what payment methods you choose, it is recommended that you always take advantage of fraud prevention services such as check and ACH positive pay.

Information Reporting: Safely and securely manage your company’s cash flow anytime, anywhere. Check balances; transfer money; view cleared checks; set up wire transfers to make quick, same-day or future-dated payments; download account history to your accounting software and view; and print and download account statements. Use a mobile app to view account history, make deposits, and manage approvals while on the go. Establish text and email alerts that notify you of specific activity on your accounts.

Liquidity Management: Improve your cash potential by putting idle funds to work, automatically and safely. When applicable, consolidate balances from multiple accounts into a single concentration account leveraging a Zero Balance Account. At the close of business, choose from a variety of automated sweep services to invest excess funds or pay down debt.

The more time a business spends on manual administrative tasks, the less time it has to invest in strategic initiatives such as market strategies and revenue growth. Investing in automated treasury management services will simplify your financial operations and free up the time you need to manage and grow your business. These services can also help to mitigate financial and operational risk by providing real time visibility to your accounts through online access or your mobile device.

Doug Ladenburger is senior vice president and director of Treasury Management Services for Northrim Bank. Ladenburger has held a variety of leadership positions in Treasury Management, Commercial Card, and Electronic Payment Services over the past twenty-five years. His experience spans all verticals to include small business, middle market, large corporate, and specialized industries. He holds a bachelor of science in business administration, with majors in management and marketing from Minnesota State University.