May 30, 2024

This paid piece is sponsored by Central Bank.

Jess Hamman’s construction business has grown along with the Sioux Falls area.

“It’s been steady growth,” said Hamman, who began Precision Dirt Works with a partner in 2016 and now is the sole owner. “I couldn’t have picked a better time to get into it.”

Hamman’s company, which does “a little bit of everything” from utilities and demolition to trucking and a variety of commercial work, has grown to 21 people.

But his banking relationship hadn’t exactly evolved with his business.

“I didn’t really have a relationship with my banker. I didn’t feel comfortable there,” he said.

“Then, I met the team at Central Bank and thought I wouldn’t mind sitting down and talking to them. They seemed very good to work with. We talked about three times, and I had a very good comfort level with them. And I think they did with me too.”

One of those initial conversations was with Charity Heaton, vice president, treasury management officer, who helped Hamman learn about ways he could better manage the financial side of his business.

“We talked about his plans, the scope and scale of his business, and the size he hopes for in the next five years. That way, we could get an understanding of what his needs were and will be,” she said.

“Then, we began to talk about the process of how we help with receivables, reduce days outstanding by having the ability to remote deposit or invoice electronically for clients and allow him to be paid online so he can continue to work on his business and not have to focus on collecting payment.”

From there, “we put together a strategy for how he could move to a business rewards card that reduces the fraud risk that comes with checks and turns into a revenue generator based on expenses,” Heaton continued.

In his previous banking, “no other place” had ever talked to him about it, Hamman said. “It was a big deal, and it definitely opened my eyes up.”

That’s not uncommon for small-business owners, Heaton said.

“We’re able to help really understand what it means to scale for growth, reduce time and expenses and go to automation,” she said.

“Some companies might really be struggling on receivables, so we can focus on that first and then payables. And, with some companies, we get in at the right time and are able to do it all right away.”

Hamman now has shifted his banking to Central Bank and uses Heaton’s strategies.

“The transition was flawless, and it was easy,” he said. “It didn’t take any of my time away from my normal daily tasks, and it’s worked out really well.”

He’s now receiving payments electronically from vendors after using all checks, and he traded in a credit card from a major national bank to one associated with Central Bank.

“Before, it was like pulling teeth to even get credit expanded, and when I came here, I told them the limit I wanted, and we went through financials, and they said there was no problem doing any of it,” he said.

“Now, I’m earning cash back I can redeem whenever I want. Plus, I have a savings account with a nice interest rate on it.”

Many small-business owners likely can benefit from these and similar strategies. Here are Heaton’s top tips to consider:

• Payables

Heaton often starts by asking businesses “What’s your payables strategy?” If they’re paying by check, it might be time to reconsider.

“You can extend days payable and reduce fraud with vendors that will accept a credit card payment,” she said. “We know it’s a change in process, and it takes time, but we partner with business customers and help create a list of vendors to reach out to and switch payment strategy.”

Businesses opting to pay what they can by credit card will find two options with Central Bank. One can be redeemed anytime for incentives such as cash back, gift cards to reward employees or airline miles. The other is a commercial card that generates revenue share throughout the year, which Central Bank then remits as a one-time deposit back to the customer at the end of the year.

“Either one can be a great option to put your expenses to work generating some additional revenue for your business,” Heaton said.

• Receivables

Heaton starts assessing receivables by having businesses share how they currently receive payments and if they’re open to receiving them electronically.

“Most companies aren’t aware a community bank understands that or has tools to help collect those funds,” she said. “So I’ll ask if you’re mailing or emailing invoices and what kind of accounting system you’re using. Then, we’ll provide a demonstration around some products and options to help you make a decision that’s best for you.”

Instead of opening check after check and manually depositing them, then waiting two days or more for the payment to post, with occasional rejected checks, “we’re able to make the process much more seamless,” she said.

“You’ll be able to see everything’s been paid and that’s outstanding electronically, and it frees up your time for growing the actual business.”

Evolving processes for both payables and receivables benefits workforce too, she added.

“If you’re still using old processes, you’re going to find you might not be able to find employees to manage those processes very easily,” she said. “Everyone wants work flows that are easy and fast-paced.”

• Interest-earning cash

Have the conversation while you can: The cash your business has on hand now can be earning interest in multiple ways.

“If the business is in the right cash position, we will help sweep that cash into something like a money market account or FDIC-insured off-market product,” Heaton said.

“I’m blown away by the number of CDs that are being used, but it makes sense, and we can even move some funds automatically into interest-bearing products.”

Again, it’s all about knowing the business and understanding the owner’s goals, she said.

“We want you to think of us as a trusted partner, an adviser within your business,” Heaton said.

“We want to help position you best to meet your goals today and years into the future. We’re committed to understanding where you are within your business and being your partner along the way.”

To begin exploring how Central Bank can help your business, stop in any location or visit mycentral.bank.