Property Managers: New Year – New Cash Management Plan

Property manager evaluating business decisions to optimize their cash management.

Due to the COVID-19 pandemic, this has been an extraordinarily challenging year for many property managers, and a new year is rapidly approaching. For many businesses, that means it’s time to look back at the year’s decisions and challenges to identify opportunities for growth and improvement.

This process can be stressful, especially in such an uncertain year, but it should also be exciting. After all, you are making changes that will help your business to be more stable and profitable in the years to come.

In most cases, optimizing your business processes requires painstaking work and dedication, in addition to lots of your time. But what if we told you there was an easy way to reduce your workload while improving your bottom line?

Fintech is changing the way property managers optimize their reserve cash.

By now, you’ve probably heard the term fintech. But what is fintech, and how can it help you earn more money on your reserve cash?

Fintech, short for ‘financial technology’, entails utilizing advanced computer systems to automate tedious financial processes. One of the processes where fintech can provide the most benefit is the protection and management of reserve cash.

ADM’s fintech makes it possible to secure FDIC / NCUA Insurance protection for up to $100 million in deposits.

As you probably know, the FDIC and NCUA provide insurance on the funds that individuals and organizations deposit into member financial institutions, up to $250k per depositor, per institution. In the past, this meant you needed to have relationships with multiple banks to secure FDIC / NCUA insurance on amounts over $250k. As you probably know, managing statements, reconciliations and relationships with multiple banks can be a full-time job. And, if you wanted to get the best rates, you’d need to evaluate and track interest rates at all those institutions. For most organizations, the increased returns didn’t make up for the work required to manage the cash, until now.

At ADM, our proprietary fintech provides a unique solution to those cash management problems. With a single deposit made through our online client portal and a single monthly statement, you can access the advantages of having relationships with hundreds of banks without the hassle. The best part about our service, is you keep your current bank. We aren’t here to replace your bank; we know that relationship is invaluable to your business.

ADM gets you nationally competitive returns on your property’s reserve cash.

For property managers, we understand that having liquid cash on hand for maintenance and emergencies is critical to the success of your businesses. For most, this has meant keeping a large sum of cash in a deposit account at a local bank. Since the pandemic struck, many businesses have re-evaluated and increased their cash reserves. This has resulted in many property management companies holding huge sums of idle cash in reserve.

In many cases, a money market or other interest-bearing deposit account is utilized to earn a return on those deposits so they can remain liquid while waiting to be used. But, with interest rates at historic lows, businesses aren’t always getting a competitive return on those funds.

Thanks to fintech, and the proprietary technology developed by American Deposit Management Co., those days are over. ADM has developed a network consisting of hundreds of financial institutions that compete for your deposits. This technology ensures you are earning a nationally competitive return on your deposits while your funds have access to 100% safety. Even in an ultra-low interest rate environment like we are experiencing today, a small increase in rate of return can equal a significant sum money for companies with large reserve needs.

With ADM you get safety and competitive returns on your reserve cash.

If you’re looking to improve your bottom line for the new year, there is no easier place to start than a Marketplace Banking™ account at ADM. It’s easy to get started and you can begin taking advantage of safety and nationally competitive returns on your business deposits within a matter of a few hours. Check out our short video to learn more:

To get started today, download our BOARD FAQ sheet for property managers and contact our team.