Business Cash Management for the Long and Short-Term

A pocket watch is lying on a pile of dollar bills indicating time is money in relation to business cash management.

In the past decade, the world of business cash management has been rapidly evolving. Advancements in financial technologies, more commonly known as fintech, have created new options that can provide significant advantages over classic cash management strategies. Whether a business is holding cash in reserve for short-term needs, or if it needs to protect a large sum for a future outlay, fintech is changing the way businesses manage their cash.

How has fintech changed short-term cash management?

Historically, managing a large sum of reserve cash has involved a great deal of work. For starters, the FDIC coverage limit of $250k at a member bank is prohibitive for many organizations whose reserves must be larger than the limit. So, to access FDIC coverage above that limit, an organization would need relationships with multiple banks.

In addition to the challenges associated with protecting cash, businesses who want to maximize their profits need to monitor interest rates at many banks to ensure they are getting the most competitive return on their reserve cash. For many organizations, the effort required to monitor the market and maintain relationships with the appropriate banks has made optimizing their cash management unattainable. Those days are over.

The American Deposit Management Co. [ADM] has revolutionized short-term cash management with our proprietary fintech that overcomes the limitations of participating in programs such as the Insured Cash Sweep [ICS]. ADM’s technology has solved the 2 major issues outlined above, safety and return.

By opening a Marketplace Banking™ account with ADM, your company will have access to virtually unlimited FDIC coverage and the most competitive return available, all with a single account and statement. ADM makes it easy to get started with a 10-minutes application. Once your organization is approved, you can make your first deposit, monitor your cash 24 / 7 with our online portal, and begin enjoying the benefits of virtually unlimited FDIC coverage and next-day liquidity. The best part is you keep your current bank. We are not here to replace your bank. Our goal is to enhance your banking relationship with the MOST safety and the MOST competitive return available.

How can fintech improve long-term cash management?

For those organizations whose cash needs are not as immediate, fintech can improve the safety and return on their cash. By applying this new financial technology to classic investment strategies, such as CD ladders, businesses can leverage the power of a network of community banks to achieve full FDIC protection and the most competitive return available. ADM’s proprietary network of community banks allows those banks to compete for your businesses cash without the limitations of programs like Certificate of Deposit Account Registry Service [CDARS].

This means strategies like CD ladders can be applied to the entire banking network to find the most competitive return available for each CD term. In addition, with an AMMA™ account, your business will have access to various insurance program options, which can provide the same protection as FDIC for a lower cost in some cases. Again, this all happens through the AMMA™ account, so your business gets a single, consolidated account statement to simplify management and reconciliations.

In addition to deposit management, ADM offers a suite of cash management solutions, enhanced by fintech, to ensure your business is getting the MOST from its cash. These services range from business escrow to vendor payment processing. And, we are always working on new ways to leverage our fintech to solve your business issues.

Earn more, risk less with Marketplace Banking™ by ADM.

When you work with ADM, our team of cash consultants will understand your needs and develop a strategy to optimize your cash, whether you need the cash tomorrow or further down the road. Our team is our secret sauce, and you will understand that once you give us a call.

At ADM, we take the work of cash management off your plate. If your business maintains a large reserve of cash, or if you are looking to reduce the work required to manage your cash, don’t hesitate to contact us. We look forward to the opportunity to provide your business with the MOST safety and the MOST competitive return available.

If you’re looking for even more valuable insights on banking, interest rates, and effectively managing your business cash, be sure to check out our Insights page and follow us on LinkedInTwitter and Facebook.