The Benefits of Business Treasury Management

In today's fast-paced business world, managing your company's treasury effectively is key to staying financially stable and growing. Treasury management is all about keeping an eye on your company's cash flow, investments, and financial risks. It's a crucial strategy that ensures your company always has the funds it needs to cover its obligations while making the most of its financial assets.

3 key benefits of business treasury management

1. Enhanced liquidity management

Liquidity management is all about ensuring a company has enough cash available to meet its short-term obligations, like paying bills, salaries, and other expenses. It's like balancing your personal budget to make sure you can cover rent, groceries, and other necessities. 

Treasury managers use various tools and strategies to keep a company's cash flow steady and avoid any cash crunches. This might include managing bank accounts, investments, and short-term borrowing. The goal is to keep a company financially healthy and ready to handle any unexpected expenses that come up.

A good manager will also help you decide on the right business bank accounts, and practices, for you. This includes deciding how much money to keep in checking accounts for day-to-day operations and how much to set aside in savings or other interest-bearing accounts to earn a return. 

General Electric Credit Union (GECU) business treasury management services include this enhanced liquidity management, but you’ll also have access to other cashflow resources like: 

• Remote Deposit Capture,¹ which gives you same-day credits if you make the deposit by 3 pm EST. 
• Autobooks,² which allows you to accept payments, send invoices, and keep track of your customers from your device. 
• Merchant Processing services, which makes it easy and secure to accept customer payments in-person, online, or via mobile payment solutions. 

2. Fraud risk mitigation

Surveys indicate that invoice fraud, which is when scammers send fake invoices to companies to trick them into paying for non-existent goods and services, costs middle-market businesses an average of $280,000 annually.³ Some treasury management features play a pivotal role in helping your business avoid this and other types of fraud. 

Positive Pay, offered by GECU, adds a layer of fraud protection to your business checking account. There are two types: 

• Check Positive Pay, which detects: fraudulent, altered, or counterfeit checks early. We'll verify each cleared check against the list you provided and notify you if anything is amiss. You choose whether to approve or deny what doesn’t match all from within Business Online Banking or our mobile app.
• ACH Positive Pay, which reduces your online fraud risk by allowing you to manage ACH debits and credits that post to your business account. For example, you can allow or block certain credits or debits, establish limits for parameters like tax IDs and dollar amounts, and we’ll monitor your ACH activity and flag items for your review. 

3. Cost reduction

Many financial institutions offer treasury management services tailored for businesses, but it's crucial to choose one that won’t nickel and dime you with excessive fees. Opting for a bank or credit union that provides transparent, lower-cost services can make a significant difference in managing your company’s cash flow and financial operations. 

The not-for-profit structure of credit unions makes them a fantastic choice for businesses. This means they often prioritize their members' financial well-being over generating profits, leading to lower fees and more favorable terms. From higher transaction limits to flexible lending requirements and rates, working with a financial institution that aligns with your business's needs without burdening you with unnecessary costs can enhance your overall financial strategy. 

As you can see, there are many benefits to treasury management for your business. Whether you want to improve cash flow, reduce costs, or reduce risk, turn to GECU for your business banking needs. As a not-for-profit organization, Improving the Quality of Financial Lives is at the core of what we do. Supporting the businesses that make up the fabric of our communities is part of that. Contact our team to see how treasury management can be a part of your business’s success!