PRESIDENT’S UPDATE // March 2012
TAB Bank has the products, services, and working professionals of a full-service commercial bank. As many know, we provide custom financing solutions through accounts receivable financing, asset-based loans, equipment financing programs, and other financing products and services. What many do not know is that we offer a suite of business accounts and commercial banking products, services, and tools. These tools have been recently improved to save our customers time and money and can be customized to fit the needs of any business. We offer the same commercial banking resources and programs as many of our more familiar competitors.
Many of our current commercial finance customers obtain funding from us on a daily basis and send their available funds via a wire transfer to another bank or financial institution. Many customers send multiple daily wires to multiple accounts thus incurring large amounts of wire fees. Why not save money that would otherwise be spent in wiring these funds and keep your money in an account at TAB Bank?
Our commercial banking team has already saved several of our current customers money in bank fees by helping them switch their business accounts and commercial banking services to TAB Bank. One recent example was a company that utilizes our accounts receivable financing program. Due to the nature of their business, they send and receive hundreds of wires and ACH items on a monthly basis leading them to reconcile multiple bank accounts from multiple bank statements. Our team stepped in and implemented a unique ACH upload process to move money exactly as they needed. Our Cash Management Portal was also made available to them for the purpose of reporting and other miscellaneous online transactions. The new ACH upload process eliminated 80% of the wires they send and 90% of all their banking transactions are now automated and processed securely online. Our customized and consolidated reporting has cut their reconciliation time in half. Finally, their banking fees were reduced by $1,500 a month.
Thomas Karren is the Commercial Banking Supervisor at TAB Bank and he can help you with all of your commercial banking needs. He will work with you and spend time understanding your business and your current banking processes. He will provide you with an analysis and proposal illustrating how and where we can potentially cut your costs, possibly saving you time as well. He will then work closely with you as we implement these solutions. To get started today contact Thomas at (801) 624-4971 or by email at Thomas.Karren@tabbank.com. //
Jeff Bell, PRESIDENT
asset-based line of credit for Coral Industries of Tuscaloosa, AL
asset-based line of credit for Express Premium Finance of Oklahoma City, OK
asset-based line of credit for Burningham Enterprises of American Fork, UT
participation loan with a finance company in Utah on an asset-based line of credit
accounts receivable line of credit for High Mountain Forest Products of Salt Lake City, UT
accounts receivable line of credit for Caribbean Gulf Container Repair of Miami, FL
4. Learn to be a social net-worker. Hire a professional or task a tech-savvy employee with building your presence up on the Internet. Linkedin, Facebook, Twitter, and other social networking sites provide terrific exposure for your products and services.
5. Create a blog (free at www.blogspot.com) to update your followers on new products and services, company events, and other news.
6. Keep your corporate structure as simple as possible. Setting up multiple corporations can sometimes reduce your tax bill, but it makes things much more complicated for potential lenders to analyze and structure your lines of credit. Sometimes it is better to forego a tax break for the larger purpose of getting a top notch line of credit.
7. When making an application for a loan from a bank or asset-based lender, be sure to make your information clear, complete, and concise. Tell your story quickly, without a lot of blue sky, and provide the key information requested by the lender. Put all the news on the table up front, both the good and the ugly. This eliminates a lot of headaches later on. The lender will eventually learn of any bad news, and it is better to hear it from you than to learn of it during an audit.
8. Treat everyone — service providers, lenders, employees — like they were your customers. Great public relations takes an enormous amount of time and effort to build up. It only takes one bad experience to give your company a tainted reputation. Goodwill among all of your business contacts will pay dividends for years to come.
9. Plan carefully and work your plan. No matter how large or how small, any business needs a definitive business plan, including financial projections. Decide where you want to go and then set forth the plan that will get you there. Free business plan templates are available on the Internet, or seek the services of a competent business planner. The plan may change from time to time, but the business needs a direction. Like a ship heading out to sea, you need to have your destination in mind so you can set the proper course.
10. Always keep a positive attitude. Business, like life, will have its share of ups and downs. You must maintain a good attitude throughout. Keep your equilibrium by putting everything in perspective. Business, while important, is rarely life or death. Maintain great family relationships, community and faith-based activities, and other outside interests at all times. This will help you make better business decisions as a result of being a more well-rounded individual. //
10 FINANCIAL TIPS FOR SMALL BUSINESS
TAB Bank has been providing financial products and services to small businesses since 1998. Over the years we have developed key working relationships with many of our clients and partners that fall into this ‘small’ category. We strive to provide useful information that will assist our clients, partners, and any other business or organization associated with TAB Bank as they navigate today’s economic climate.
To this end of providing relevant resources and tools to the small business community we offer 10 Financial Tips for Small Business. These ideas should aid any small business owner as they look to new opportunities and challenges and reflect on lessons learned from the past.
1. Associate with other small business owners for learning and networking opportunities. Groups such as the Small Business Finance Institute can provide excellent opportunities to learn from other small business people, trained professionals in accounting, law, finance and other fields, and to network to find new sources of business.
2. Do not skimp on accounting services. As soon as possible in the life of your company, have your CPA prepare an annual review or audit each year. This will provide tremendous credibility when approaching sources of credit. It validates your financial results and provides the lender or potential vendor with a comfort level about your internal reporting.
3. Reach out to the SBA and other governmental agencies for not only financing options, but for educational programs. The SBA and other government groups often provide free or low-cost seminars on topics crucial to small business.
TAB BANK TRUCKING REPORT
TAB Bank has one of the largest portfolios of transportation receivables in the industry. We have been a key financial partner to trucking firms of all sizes since our founding in 1998. We know that being your financial partner is a daily commitment. We seek to provide financial and economic expertise and insight that goes beyond the daily tasks of providing service and support for our client’s accounts. We also recognize that the performance of the trucking industry is a leading economic indicator of the economy overall.
This is why we are pleased to provide you with our first TAB Bank Trucking Report. We have compiled useful metrics and indicators from outside our realm of influence as well as within. We hope you will find this information and insight useful as you continue to grow and expand your business.
The report is categorized into three parts.
Part 1 (Industry Numbers)
• US Diesel Prices (Prices continue to fly through the roof with no indication of slowing down. The average price of diesel recently surpassed the psychological barometer of $4.00/gallon.)
• Industrial Production (A key leading indicator of trucking activity is the Federal Reserve’s Industrial Production)
Click here for the Industrial Production report.
• Purchasing Managers Index (ISM)
Click here for the ISM report.
Part 2 (Core TAB Client Metrics)
We have included three metrics that you told us were important to you from our own portfolio of transportation clients. We identified 25 of our core transportation customers that have been an accounts receivable financing client of TAB Bank for a minimum of one year and have at least $1 million in outstanding A/R at any given time in order to provide the vital measurements of DSO (Days Sales Outstanding), total amount of invoices purchased by TAB, and average invoice size.
Part 3 (Business Conditions Survey Results)
We continue to ask for feedback from many of our transportation clients on a quarterly basis as to the state of their business. We ask for their input on three primary topics as it relates to their business and their own observations. The topics are freight rates, fleet size, and number of employees. Results of this survey from the 2011 4th quarter as compared to 3rd quarter 2011 indicate increases in all 3 categories and confidence that this trend will continue.
Please click here for the complete TAB Bank Trucking Report.
Salt Lake City, UT
“Tanner continues to be recognized for creating an exceptional work environment and for the work/life balance its employees enjoy. Tanner has a first-rate ‘bench’ of employees to avoid burnout and costly mistakes. Tanner has won awards, including the 2010 Best of State and 2010 Utah Work/Life, for the firm’s commitment to maintain this balance.”
(Excerpt from Zions Bank’s “Speaking On Business” broadcast, January 11, 2011, KSL Radio)
With approximately 75 employees, Tanner LLC is the largest locally owned public accounting firm in Utah. The firm has been the recipient of numerous awards and has experienced significant growth over the past six years because of a record for quality and service. Tanner has been recognized as the best accounting firm in the state of Utah and is the only accounting firm to be recognized as one of “Utah’s Best Places To Work” by the Utah Work/Life Awards. Tanner has been recently honored again as one of the Top 25 Firms in the United States by INSIDE Public Accounting in 2011.
The firm’s overall strategy has been to serve the best companies in each key niche. Tanner serves many of the leading organizations in the technology, life sciences, hospitality, manufacturing, construction, transportation, energy, not-for-profit, and financial services sectors. The firm provides these clients with the high-quality research capabilities of a large firm, combined with the timely and focused decision-making processes of a smaller firm.
Tanner serves more Utah-based companies receiving venture capital, private equity, mergers and acquisitions and other financing transactions, than any other firm. Many of the firm’s clients are numbered among the Utah Business “Fast 50” and rely on Tanner when they are contemplating a serious transaction.
As a member of PKF International, Tanner provides access to affiliated CPA firms and technical consultants located throughout the United States and in the world. PKF has over 200 offices world-wide and revenues that place it among the top networks in the world. //
TAB BANK CUSTOMERS RATE TAB VERY HIGH IN SATISFACTION
In an independent customer satisfaction survey conducted by the University of Utah, 93% of customers surveyed rated TAB Bank’s customer service as ‘highly satisfactory’ or above and all respondents rated TAB six or above on a scale of one to ten in satisfaction. The same survey also asked respondents to rate TAB’s sales experience and 96% view the experience as positive. 57% rated the experience as Great, Exceptional, or Outstanding.
The survey was conducted by a University of Utah research team and involved phone and email surveys.
Click here for complete survey results. //