Treasury & Liquidity Management

Treasury and liquidity management impact large and small businesses alike. Proper debt and cash management impact daily operations, vendor management, and suppliers’ relationships. The Wallis 360 business banking platform helps your business stay on top of your treasury needs through ACH activity control, real-time transactional information, loan payments management, and bill pay.

What is Liquidity Management?

Liquidity management is optimizing available cash usage and enabling businesses to simultaneously manage daily operational cash needs and timely debt servicing. Liquidity risk increases as businesses are not able to properly fund operations nor comply with debt obligations. To minimize this risk, a business must stay aware of short-term and long-term cash needs so it can properly match cash availability with financial obligations.

Liquidity Risk Management

There are a few steps an institution can take to minimize financial risk and avoid cash flow deficiencies.

• Make payments on time There is truly no room for error here when managing a business’s finances. While you may be able to work out one missed payment, it can be difficult to come back from consistently missed payments towards rent, utilities, loyal vendors, company payroll, and so much more.
• Cash management Keep track of how much you spend per day and compare it to how much is owed. Performing this type of cash flow forecasting might lead you to find that you need to make changes to daily operations in order to keep up.
• Consolidate debt Work with the companies you owe money to in order to create a manageable timeline to pay off outstanding amounts of money.
• Working Capital Preparation Once your cash flow forecasting is in place, use that information to establish a relationship with a bank. Plan your future cash needs and set yourself up for success by having the proper bank products to meet impending large cash outlays. 

Contact us at Wallis Bank for more information on treasury and liquidity management, or schedule for a one-on-one consultation with a member of our team.