Fifth Third Bank offers tips to perform an annual cash flow checkup
CINCINNATI--(BUSINESS WIRE)--According to the U.S. Small Business Association (SBA), more than half
of Americans either own or work for a small business. However, if the
Great Recession taught us anything, it’s that an effective capital
management program is vital to the health of these small businesses and
their employees, says Kala Gibson, senior vice president and head of
business banking at Fifth Third Bank (NASDAQ: FITB).
“Just as you would receive an annual exam to check your physical health,
small businesses should perform a cash flow check up on a yearly basis
as well,” Gibson said.
There is no better time to consider this annual exam than National Small
Business Week, May 4-8, 2015. Issued as a presidential proclamation
every year since 1963, National Small Business Week recognizes the
critical contributions of America’s entrepreneurs and small business
owners. Nearly two out of every three jobs created in the U.S. annually
are attributed to small businesses.
“Small businesses are the heartbeat of the American economy, but they
might not have the resources to structure an effective cash flow program
on their own,” Gibson said. “Fifth Third Bank is supporting small
businesses with tips to diagnose, develop and execute an effective
working capital management plan during Small Business Week.”
Diagnose the Problem
When you have your annual exam, the doctor runs a series of tests to
make sure everything is functioning properly and to determine any
trouble areas. In the same way, the most effective approach in the
development of a cash flow strategy is to diagnose where the bottlenecks
or pain points exist.
For many small businesses, it may simply be a matter of transitioning
personal capital to working capital. Others may want to evaluate the
time needed to sell inventory, collect receivables or pay its bills.
Regardless of the cash flow challenge your small business is facing,
your bank or trusted financial partner can help determine areas of
inefficiency and improve your cash flow.
“Like many small business owners, all the money tied up in my business
in the first couple of years was personal capital. I knew I needed
working capital to take the next step,” said John Conlee, president and
CEO at Vertical Edge Consulting. “Working with Fifth Third Bank, we
established a line of credit that allowed me to recoup my personal
funds, while still allowing me to meet payroll and other business
expenses.”
Prescribe the Treatment
After diagnosing your illness, a doctor gives you a treatment plan.
Similarly, a bank or trusted financial partner can create a plan of
attack for your small business.
The tendency at this stage is to work quickly to repair or eliminate the
diagnosed pain points, but organizations should consider bringing in a
banking partner for an outside perspective. Financial professionals have
tremendous expertise in working capital management and can ask probing
questions that challenge the status quo.
“I didn’t feel like I was getting the service I needed from my previous
bank, but when I switched to Fifth Third, they laid out a plan that
helped me double the size of my business,” said Dina Kessler, chief
operations officer at Kessler Creative, LLC. “That level of personal
service really made a difference in the future of my business.”
Do What the Doctor Ordered
If you don’t follow the doctor’s orders, your next annual physical will
often reveal the same conditions. At the same time, if you don’t execute
the plan to improve your cash flow, you’ll see the same pain points the
next time you evaluate the health of your business.
Work with your banking partner to ensure you are meeting your cash flow
goals and schedule regular checkups to evaluate your future cash needs.
Taking advantage of the tools and expertise offered by Fifth Third Bank
can make all the difference when it comes to meeting your cash flow
goals and driving success for your small business.
“Small Business Week is a time to celebrate the companies that are the
lifeblood of our economy,” Gibson said. “Make sure your business is
healthy by scheduling your annual cash flow checkup today.”
About Fifth Third Bank
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of March 31, 2015, the Company had
$140 billion in assets and operated 15 affiliates with 1,303
full-service Banking Centers, including 101 Bank Mart® locations, most
open seven days a week, inside select grocery stores and 2,637 ATMs in
Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West
Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth
Third operates four main businesses: Commercial Banking, Branch Banking,
Consumer Lending, and Investment Advisors. Fifth Third also has a 22.8%
interest in Vantiv Holding, LLC. Fifth Third is among the largest money
managers in the Midwest and, as of March 31, 2015, had $308 billion in
assets under care, of which it managed $27 billion for individuals,
corporations and not-for-profit organizations. Investor
information and press
releases can be viewed at www.53.com.
Fifth Third’s common stock is traded on the NASDAQ® Global Select Market
under the symbol “FITB.” Fifth Third Bank was established in 1858. Loans
subject to credit review and approval. Member FDIC, Equal Housing Lender
Fifth Third Bank
Sean Parker, 513-534-6791