Down-to-Earth Banking Five Keys to Improving Small Business Cash Flow How Banking Green Pays You Back A Green Lifestyle Can Help You Save ALSO IN THIS ISSUE: > Meet Your New CFO > Growing Interest in Eco-Friendly Banking pnc.com 1-877-CALL-PNC
Business Banking How to Optimize Your Small Business Cash Flow Cash flow is critical to the success of every business, but many small businesses can t afford the luxury of a CFO to constantly monitor their cash position. Fortunately, it doesn t take a financial professional to optimize your cash flow. You can go a long way toward improving the cash flow of your business by focusing on the five key areas of effective cash management. 1 Accelerate the Collection of Receivables The key to positive cash flow is to keep money coming into a business faster than it s going out, so any method that enables you to get your incoming payments into your working cash fund faster is worth considering. Merchant services solutions can expedite the funding of credit card and debit card transactions. Remote deposit solutions allow you to put incoming checks to work for your business faster. You can deposit checks 24/7 without making a trip to the bank. 1 1 Funds may not be available for immediate credit and withdrawal. 3 Invest Your Excess Cash Effectively Ensure your excess funds aren t sitting idle by putting them to work to meet your short- and long-term liquidity needs. Money Market Accounts put business funds to work while ensuring quick access when needed. Sweep accounts automatically transfer your surplus checking account funds into interest-bearing vehicles at the close of each business day. Business CDs offer attractive interest rates while providing a selection of principal and maturity options. 2 Improve the Ways You Make Payments Key Areas of Cash Flow There are a variety of technologies available to help you enhance cash flow by improving your processes for making business payments. Online bill payment services allow you to reduce the time and costs involved with paying bills and provide greater control over the timing of payments. Accelerate the Collection of Receivables Improve the Ways You Make Payments Ensure Access to Cash When You Need It Online payroll solutions enable you to process payroll in a fraction of the time it takes to do it manually at a lower cost than a traditional payroll service. Using a business credit or check card can help you control and track your spending more effectively. Invest Your Excess Cash Effectively Utilize Online Information and Reporting Tools Continued on page 3 2 Directions MAY / JUNE 2009
Business Banking Introducing From PNC How to Optimize Your Small Business Cash Flow Continued from page 2 4 Leverage Online Information and Reporting Tools It s critical to keep a close handle on your fluctuating cash flow, and with today s Web-based financial reporting tools, it s never been easier to leverage the power of the Internet to help you make better business decisions. Online banking services put a comprehensive current snapshot of your business finances at your fingertips anytime and anywhere you want it. Web-based treasury management packages feature various sophisticated services to help larger businesses that require expanded cash management capabilities. 5 Ensure Access to Cash When You Need It Cash flow isn t just the most important thing to a small business. It s everything. That s why every small business could use a CFO. And now, every small business can have one. Meet your new CFO: Cash Flow Options from PNC designed to provide you with the resources and expertise you need to improve cash flow, from the first dollar forward. PNC Bank, Member FDIC For more information on CFO: Cash Flow Options from PNC, stop by any PNC Bank branch, call 1-877-BUS-BNKG or visit pnc.com/cfo. Take steps to ensure you have access to credit to respond to cash shortfalls, as well as to take advantage of unexpected opportunities. Establish a line of credit for your business that puts cash at your disposal whenever you need it. pnc.com 1-877-CALL-PNC 3
personal banking Banking Green Even if reducing your carbon footprint isn t at the top of your priority list, the idea of banking green is something worth considering. By making a few small changes in the way you handle your finances, you can save both time and money as well as help save the environment. Sign-Up for Online Banking Conducting your banking transactions online might sound complicated, but it s surprisingly simple. It typically takes less than five minutes to set up access to your accounts online, it s secure, and you ll have a variety of convenient features at your fingertips to help you manage your finances more effectively. In addition to saving you time and fuel by reducing your trips to the bank, you ll be more on top of your finances and you ll be able to more quickly recognize fraud or identity theft should it affect your accounts. Use Your Check Card for Purchases Instead of writing checks for purchases, use your check card whenever possible. You ll significantly cut down on the number of checks you use, saving time and money as well as paper. Green is Growing The burgeoning interest in green banking is being spurred by a growing interest in protecting the environment. These figures show the percentage of consumers who listed environmental concerns as their main reason for switching to online statements. Eliminate Paper Statements One of the easiest and most significant ways to benefit the environment and yourself is to stop delivery of your paper account statements. Most banks now offer online statements that provide all of the features of paper statements and more. You can receive e-mail notification when a new statement is ready, access past statements and print copies of your statements and check images when necessary. Online statements also help protect you from identity theft by keeping your personal financial information out of your mailbox and trash. 2005 Take Advantage of Direct Deposit With direct deposit, you can have your paycheck or virtually any other regularly scheduled payment like pension payments, Social Security payments, etc. deposited directly into the bank account you designate. Along with saving you time and fuel by eliminating a trip to the bank to deposit your check, you ll have faster access to your money. Pay Your Bills Electronically Just about every online banking service features online bill pay capabilities, which allow you to pay virtually any bill electronically as well as set up future or recurring payments with just a few clicks. You can save time, money, paper and fuel by reducing your need to write and mail checks. 2008 According to Javelin Strategy & Research. 21% 34% Directions MAY / JUNE 2009 4
INVESTMENTS A Green Lifestyle Can Help You Find New Savings Many people believe that going green means spending more money, but just the opposite is true. Conserving natural resources conserves your financial resources. When you live a more efficient lifestyle, you ll find new savings every day that you can put to work toward your financial goals. Cut Your Home Energy Bills Replace Inefficient Light Bulbs Regular light bulbs may be cheap, but they re very inefficient. Switch your bulbs to compact fluorescent light bulbs, and you ll save four times the energy of a regular bulb. Turn off Electronics That Aren t in Use Powering down your PC when you aren t using it can save about $100 a year in electricity. Even when your TV set is off, it s still using power. Unplug your electronics when not in use, or plug them into a smart power strip, to eliminate this waste. Use ENERGY STAR Appliances Appliances with the government s ENERGY STAR rating might cost a little more, but they ll invariably pay for themselves in reduced operating costs over their life spans. Water Use and Conservation Fix Leaky Faucets and Toilets A dripping faucet wastes up to two gallons of water per hour, and leaky toilets are bigger culprits. To check for a leaky toilet, simply drop some food coloring into the tank and wait 15 minutes. If colored water shows up in the bowl, you have a leak. Take Shorter Showers Reducing your shower time by two minutes will save 10 gallons of water, in addition to cutting your water-heating costs. Stop Buying Bottled Water Bottled water costs 2,400 times as much as tap water (which is generally purer than bottled water), and it generates millions of tons of plastic each year that ends up in landfills. Save Money by Saving Gas Check Your Tire Pressure Frequently Having the right amount of air in your tires helps optimize gas mileage. Under-inflated tires can reduce your mileage by 15 percent. Avoid Unnecessary Idling Even in cold weather, it takes only 30 seconds to warm up your car. Anytime your car will be stationary for more than a minute, it s more efficient to turn off the engine and re-start it. Reduce the Trips You Make Schedule errands and other outings so you aren t covering the same ground over and over. Carpool to work, for children s activities, etc., whenever possible. For more information on cutting energy costs, visit www.energystar.gov. Additional ResourceS For more water-conservation tips, visit www.wateruseitwisely.com. For more information on saving gas, visit www.fueleconomy.gov. 5 Directions MAY / JUNe 2009 pnc.com 1-877-CALL-PNC
INVESTMENTS A Little Bit of Saving Will Benefit You a Lot! Growing Interest in Eco-Friendly Banking Here s how saving just a few dollars a week at a very conservative interest rate of 2.00% can benefit you in the long run. Weekly Period Total Savings of Time Savings $10 10 years $5,808 $25 10 years $14,519 $50 10 years $29,039 For some really big savings, consider making a major lifestyle change. For example, a married couple with two cars can give up one of their cars and save an average of $600 in monthly auto expenses. Green banking is growing rapidly in popularity. About 25 percent of American households now are taking full advantage of green banking practices to help preserve our natural resources and that figure is expected to grow to nearly 40 percent by 2011, according to Javelin Strategy & Research. As more and more consumers adopt green banking practices, the potential benefit to the environment is tremendous. Javelin estimates that if every American household paid its bills online, it would reduce solid waste by 1.6 billion pounds per year and save 2.3 million tons of wood equivalent to 16.5 million trees. This publication may provide reference to Internet sites as a convenience to our readers. While PNC endeavors to provide resources that are reputable and safe, we cannot be held responsible for the information, products, or services obtained on such sites and will not be liable for any damages arising from your access to such sites. The content, accuracy, opinions expressed, and links provided by these resources are not investigated, verified, monitored or endorsed by PNC. These articles are for general information purposes only and are not intended to provide legal, tax, accounting or financial advice. PNC urges its customers to do independent research and to consult with financial and legal professionals before making any financial decisions. The opinions and views expressed by the authors do not necessarily reflect the opinions and views of PNC or any of its subsidiaries or affiliates, nor does the inclusion of the articles in this magazine constitute endorsement by the authors or PNC of any of the products or services of others referenced herein. For More Information: PNC Directions is a publication of The PNC Financial Services Group, Inc., a highly diversified and growing financial services organization offering a wide range of products and services for individuals, businesses, corporations and government entities. No matter how simple or complicated your needs, PNC is sure to have the right products, knowledge, and resources to provide you with a variety of solutions. For more information, please call 1-877-CALL-PNC, visit pnc.com or stop by any PNC location. 2009 The PNC Financial Services Group, Inc. All rights reserved. 127564 6