- Do you know where your firm holds cash? (ALL the banks and other providers.)
- Do you know how much your company earns on its cash positions and the fees it’s paying on them?
- Do you have the information you need to make informed decisions about where your firm’s cash should optimally be held?
If you answered “no” to any of those questions, your company could be losing money on its cash positions and — perhaps more importantly — missing out on opportunities to earn revenue from them.
Understanding where all of your firm’s cash is held (and at what cost) is an obvious — yet often missed — aspect of treasury management. Having a clear picture of balances, rates and transaction costs across all banks and counterparties can provide the insights needed to reduce funding costs, fees and penalties. It will allow you to increase returns, reduce risk and identify capital you can use as opportunities arise.
Added benefit: Actively managing cash will allow your firm to provide key stakeholders with information about all the steps it’s taking to mitigate risk and take advantage of opportunities. Your competitors are likely doing this. If you’re not, it’s time to catch up to them.
Remember: Traditional cash management methods usually involve countless manual spreadsheet-based processes that are time consuming and error prone. This can expose firms like yours to unnecessary inefficiencies, lost yield opportunities, unnecessary fees and risks.
Optimizing your cash management strategies and processes doesn’t have to be costly or take a long time to plan and implement. In fact, Hazeltree Cash Manager™ takes only weeks to implement, and it generally begins driving dollars to the bottom line within a few months. By actively managing cash, clients have seen an incremental yield of 40-50 basis points.
Learn more about the industry-leading Hazeltree solution and schedule a demo to see how it could improve your firm’s cash management strategies.