MESSAGE FROM LEADERSHIP // July 2013
"B" IS FOR BANK
For many of our customers and referral sources, it is easy to forget
that TAB is a bank. For our core products of factoring and asset-based
lending, we compete against many non-bank finance companies. And while
many companies can provide working capital for businesses, we feel the
added element of an FDIC insured institution is an important aspect to
why TAB is a great fit for many businesses.
What does that mean? For most of our clients, it is cost of funds. We
have the luxury and privilege to gather FDIC insured deposits as the
majority of our funding base to lend to our customers. That structure
allows TAB to have similar costs as most banks across the country. It
also means we are regulated by the FDIC, as well as Utah's Department of Financial Institutions.
The transparency of outside examiners reviewing TAB's portfolio and
procedures gives our clients the added comfort of working with TAB Bank.
The other piece to our offering as a bank is our ability to provide deposit products; specifically Treasury Management Services,
for our business clients. TAB has a suite of products such as
online banking, ACH and wire origination, remote deposit capture,
lockbox, positive pay, card distribution and other services. We support
these products without a branch network, which allows us to be more
streamlined for our customers.
We feel these attributes are what allow TAB Bank to be in the unique
niche of being the best of both worlds of a bank and a finance company.
Whether you have known us for a long time or just getting to know us,
check out all that we have to offer. I hope you find the other articles
in this edition helpful, entertaining or informative. If there is
anything you would like to discuss further, please reach out to anyone
at TAB Bank and we would be happy to talk with you.
// Steve Sala, President
HAVE IT ALL WITH
A/R financing, or factoring, offered by TAB Bank allows you to have
access to the majority of your account receivable funds immediately,
rather than waiting for your customer to pay you around 30 days later.
With A/R financing, you have an enhanced ability to grow your business
and provide additional services to many of your customers, thereby
increasing your revenue and profits.
We recognize that there are many companies that offer A/R
financing. Here at TAB Bank, our goal is to be your business partner
every step of the way. We want to facilitate your growth and success
and get you to the point where you are able to "graduate" from factoring
and into a more traditional line of credit. However, this doesn't mean
that we want you to leave TAB Bank. We offer many different business
products designed to help you achieve success. In addition to A/R
financing, we have ABL, or asset based lending lines, equipment
financing and traditional lines of credit as well. As a traditional
bank, we can provide treasury services, equipment leasing and lockbox
services to assist in streamlining your bookkeeping processes.
The bottom line is that we want to be your bank. We are
committed to being the bank that you can rely on for all of your
financial needs. We want you to take comfort, knowing that TAB is
uniquely positioned to help you through all of the growth stages of your
company as well as the economic twists and turns that the future will
Please call 801-624-4800 and ask to speak with one
of our Business Development Officers if you are interested in learning
more about the products that TAB Bank offers. TAB is uniquely
positioned to provide your business with solutions and
IMPROVING YOUR BUSINESS'S PROFITABILITY
To maximize profitability you must manage your expenses. The most
obvious and basic tip for expense management is to budget. Every
financial expert will tell you to track and periodically evaluate what
you are spending money on. However, keeping track of all the expenses of
your business can be challenging and time consuming. Many businesses
need employees to have access to company funds in order to function,
which can complicate accounting exponentially. Another piece of advice
frequently offered is to purchase and utilize accounting software. While
accounting software often can be very useful, business owners sometimes
will find it difficult to transfer information from their account into
the accounting software. Because of the problems that can arise for
business expense management, TAB offers solutions to help with
your unique challenges.
CHANGE NOTHING AND MAXIMIZE YOUR EARNING POWER
TAB is well aware that businesses are as unique as the individuals who
run them. Your business needs are unique as well. We also understand
that time spent worrying about your financials, could be better spent on
improving your business, which is why we help you maximize your earning
power through Account Sweeps. Account Sweeps automatically improve your
earning power, without you needing to do anything, except for signing
up for them. Account sweeps are set up, so that you can run all your
transactions through your business account, but gain all interest
possible from a savings account. Basically your pool of funds stays in
your savings account, and the sweeps are made daily to cover the debits
made in your business account, maximizing the interest you earn. These
sweeps are done automatically, so you don't have to worry about calling
in or going online to make a transfer.
EASIER EXPENSE CONTROLS AND BETTER EMPLOYEE ACCOUNTABILITY
Since many companies need their employees to be able to make purchases
in behalf of the company, TAB recognizes a company's need for controls
and reporting on those purchases. That is why TAB has developed
accounts, the Business Alliance Account and the Business Advantage
Pre-paid Card, that allow the company to set and manage purchase control
limits on their employee-used cards, as well as receive reporting on
those cards. Through TAB's business account options, companies can
manage and maintain their employees' card control limits 24/7 through
TAB's online banking system. These accounts offer business owners the
control to set limits on the types of purchases, as well as the amounts
of money allowed. Businesses can print as few or as many cards as needed
and add more cards or take away cards anytime. Additionally, owners can
pull individual card reports from the online banking system, so they
know exactly what card was used for each purchase.
CREATE MORE TIME
In any business, accounting for expenditures can be a challenging task,
especially when your accounting software requires specific file types
that may be difficult to create. Through TAB's Treasury Management
Services (TMS) package, we offer custom reporting where you can tell us
how the file needs to be formatted. We do the work for you and build the
file to fit your needs. Additionally, through our Treasury Management
Services offer we can create BAI reporting files. BAI files are an
industry standard file format, used for electronic cash management
balance reporting. These files are often used for accounting software as
well, and TAB will create these files and email them to you daily when
you sign up for our Treasury Management Services package.
While business expense management can be a difficult task, TAB is here
to help. From offering more control over who has what access to your
business accounts to customized reporting and maximum interest earning
tools, TAB can help simplify your expense management procedures, while
maximizing your earning power. These tools and many others allow TAB to
offer solutions to fit your unique needs. Let us know how
we can help you by calling 1-800-355-3063 today. Our customer service
representatives are available to help you 24/7. //
||TAB BANK TO PROVIDE TITLE SPONSORSHIP AT 13TH ANNUAL OGDEN RESCUE MISSION CHARITY GOLF TOURNAMENT
Bank is pleased to once again provide the title sponsorship at the
annual Ogden Rescue Mission Charity Golf Tournament. This year
represents the 13th year this event has been held. The tournament will
once more be held at the beautiful Wolf Creek golf course in Eden, UT
and is scheduled to take place on Friday, September 6th.
"We have been affiliated with the annual Ogden Rescue Mission Golf
Tournament every year it has been held. The Ogden Rescue Mission is an
outstanding organization and a critical community resource. The
services and support they provide are truly life changing. We are
thrilled to partner with them as the title sponsor of the annual golf
tournament and raise much-need funds to ensure they are able to continue
serving the community," stated Trevor Morris, Marketing Manager of TAB
The golf tournament is a major fundraiser for the Ogden Rescue Mission
and provides necessary funds for this community-based organization to
achieve its objectives. Each year more than 100,000 meals are prepared
and served to poor and needy men, women, and children who come to the
Ogden Rescue Mission's doors for help. Once inside, they soon realize
that the Mission is so much more than a soup kitchen or a shelter.
Additional services include a free medical and dental clinic, a thrift
store, rehabilitation services, and so much more. //
RECENT FUNDING ACTIVITY
accounts receivable line of credit for Electro Brand, Inc. of Westchester, IL
accounts receivable line of credit for Nelson J.I.T. Packaging Supply, Inc. of Phoenix, AZ
ASSET-BASED LENDING LETS YOU "DANCE WITH THE ONE THAT BROUGHT YOU"
If you've spent any time in the South or are a die-hard sports
fan, you've heard or even uttered the saying, "Dance with the one that
brung you." It was a favorite expression of former University of Texas
football coach, Darrell Royal, and when applied to a game strategy it
means you go with the players and plays that have resulted in wins. It's
about loyalty and reward.
Applying the phrase and its meaning, even with improper grammar, to
creating working capital, it means leveraging your accounts receivable,
inventory, equipment and other assets to not only secure a line of
credit, but grow and continue to succeed as well.
Asset-based lending is ideal for small-to-midsized businesses that have a
high percentage of current assets, need working capital to support
growth or expand their business, have seasonal or cyclical natures, have
outgrown their current lender, or need a more flexible financing
solution than what traditional bank financing can provide.
Getting cash through an asset-based loan to continue the operations of
paying your employees, purchasing supplies or distributing your product
can be what your business needs to not only survive but continue its
You've manufactured products and have been contracted to distribute
them, so why not be rewarded for what you have and what you've done. In a
sense, with asset-based lending (ABL) you get to "dance with the one(s)
that brought you," —your assets. You'll be rewarded with greater
borrowing capacity, fewer financial covenants and more immediate working
An asset-based loan rewards you for having loyal customers, even though
some of them may not pay on time. No longer will your business be
penalized or stifled by customers who are paying you beyond 30-days or
more after the fulfillment of their order.
It's a winning combination, you and your assets. ABL gives you and your
partners' operational ability beyond your competitors on the proverbial
dance floor. In fact, you will be rewarded for the quality of your
relationships with your customers, their ability to pay and the
liquidity of your assets, rather than solely on the amount of your
available cash and credit rating.
Traditional bank loans are still hard to get your hands on with only 10
percent of the applications being approved by big banks. On the other
hand, asset-based loans, even during times of financial difficulty, are
being won at a rate of 60 percent.
From the time you receive this influx of working capital or revolving
line of credit, it can get even better. You can borrow, repay and
re-borrow as needed over the life of the loan facility. The loan amount
can increase as a company's inventory and accounts receivable increase,
which accelerates the availability of working capital and fuels ongoing
Ultimately with an asset-based loan, you get to keep doing what has been
successful for you.