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Treasury Services Ease Transition for Emerging Middle-Market Firms

April 23, 2024
Tammy Comeaux
Tammy Comeaux

Transitioning from a small-market to a middle-market business brings many challenges, as owners and their typically lean staffs find themselves pulled in various directions and seeking ways to operate more efficiently.

For emerging middle-market enterprises experiencing normal growing pains, one key to building efficiency in financial management is developing a relationship with a strong treasury management bank. In particular, adopting its online banking platform can be an enormous time saver.




Growth Adds Complexity

That’s been the experience of one Hancock Whitney client, who more than a decade ago purchased a single temporary staffing agency with the help of a loan from the bank and now has franchise locations across the Gulf South.

Along the way, the business has increased its revenue 30 times over, and the owner plans to pursue continued expansion. One byproduct of the company’s growth has been increasingly complex, day-to-day banking needs.

The company’s CFO was spending an increasing amount of his time on the phone with his banker, seeking help in managing a growing number of accounts and 20-plus loans — asking him to do everything from providing copies of checks to initiating wire transfers and Automated Clearing House (ACH) payments.

Eventually, these daily phone calls became too onerous, and the CFO decided to automate by adopting Treasury Manager, Hancock Whitney’s commercial online banking platform.


Fewer Phone Calls, Greater Control

Treasury Manager enables the company to eliminate frequent daily phone calls to the bank and monitor account activity and initiate funds transfers much faster and more simply online.

In conjunction with adopting online banking, the company now uses Bill Pay Manager, which allows it to receive bills and initiate payments to individuals and suppliers through a single application. Setting up a new payee takes only minutes, and all the information is saved automatically, making recurring or future payments fast and convenient.

Having online access to banking information through Treasury Manager has allowed the company to bring on a comptroller to manage bookkeeping duties internally, eliminating the need for an external accountant. Not only has this change resulted in cost savings, but it’s enabling the business to produce monthly financials within the first 7 to 10 business days after each month end. Previously, the company’s external accountant delivered quarterly financials a month or so after quarter end.

With this timelier reporting, the company is better able to track expenses and has a more current view of its cash position on a daily basis. This makes the company nimbler in pursuit of new business opportunities, including buying new franchise locations.

Treasury Manager also supports growth by freeing up the company’s CFO to become more of a strategic advisor to the CEO as the company forges ahead with its continued expansion.


A Partner in Mitigating Fraud Risk

Successful growth requires avoiding setbacks like major fraud losses, and so the treasury team at Hancock Whitney is also helping the fast-growing business manage fraud risk.

The company knows fraud is a real danger after taking a small loss after a fired employee used information on one of the company’s bank accounts to pay his cell phone bill via ACH for several months before eventually being caught.

In response, the company recently added ACH positive pay on eight bank accounts. The service allows the business to reject any ACH debits from those accounts that do not perfectly match certain transaction parameters, such as payee name, dollar amount and date of transfer.

The Treasury Manager mobile app supports fraud mitigation efforts by allowing treasury managers to use a mobile phone to initiate and approve wire transfers — as well as make positive pay decisions to approve or reject check or ACH payments — while they are away from the office.


Learn More

To learn more about how Hancock Whitney’s array of treasury services can support the growth of your business, as well as combat fraud, contact your banker or call 866-594-2304.

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