Cash Optimization

Superior Efficiency: Getting the best return possible for the money that flows into your account

Why let your operating cash sit in your bank account doing nothing? At Superior Bank, we make sure your excess cash goes to work for you, by either paying down a line of credit or as an investment. Managing your working capital has never been easier.

The Worry-Free Way to Manage Daily Balances

Every day, your operating cash can be doing more for your business. However, every day you have a business to run, and there may not be time to effectively manage it. To take the burden off of yourself, turn to Superior Bank for cash optimization.

Understanding the Cash Management Process

In cash management there are three simple phases:

• Money flows into your business.
• When money flows in, you do something valuable with it until the funds are disbursed. This is Optimization.
• Money flows out of your business to pay vendors, employees and owners.

Understanding the Cash Management Process

The question of how best to utilize the money that flows into your business depends on a number of specific factors:

• Average cash levels
• Borrowing needs
• Service costs
• Investing needs

To optimize your business’ excess cash, the challenge is to look at the four factors above and then determine what course of action would create the best return for that cash.

Maximizing Your Cash with Sweep Accounts

A Sweep Account takes your excess cash and makes it more useful. For instance, if your business uses a line of credit to smooth out its cash flow, your borrowing rate will be higher than your earnings rates. In this case, you will benefit from using excess cash in your operating account to reduce interest expenses by paying down your line of credit. This Credit Line Sweep will keep borrowings low, thereby lowering interest expenses.

On the other hand, your business may not have any borrowing needs. In this situation, the best course of action would be to invest your cash overnight. Suddenly, instead of your money just sitting there, this Sweep Investment Account will optimize earnings on your excess cash.

A Plan That's Right For You

The key for determining the best optimization plan for your business is to work with your Superior Banker. With some facts in hand, we can calculate the most advantageous use of your excess cash. Maximizing your interest rate management and investment strategies has never been easier. Or more effective.

Make Your Money Work Smarter

Contact your Superior Banker and learn more about Investment Sweep products.