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Business Banking
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What kind of deals does the bank look for in the approval process?
- Businesses that have an opportunity to use the bank’s capital to improve their profitability
- Business owners who have a strong personal credit history
- Businesses with strong, diverse and creditworthy customers
How does the bank’s program work?
- Your business presents the bank with your existing and ongoing accounts receivable and receives cash upon presentation.
- The bank keeps you informed of the status of your accounts through a series of timely and easy to read reports.
- Your customers pay back your line of credit by remitting payment to the bank’s lockbox.
How does my business benefit?
- Increased Profits—Realize your true growth potential possible when cash flow is not an issue and additional working capital is injected into your business.
- Decreased Costs—Take advantage of supplier discounts not previously available to your company when cash flow was tight.
- Reduce Credit Risk—State Bank’s diligent underwriting of your account debtors can help you identify potential losses before they happen.
- Improve Overall Business Management —Increase inventory, have no payroll worries, offer flexible terms to customers, pay off existing debt, and capture new opportunities.
Is there a long-term contract associated with this service?
No. The bank’s 100% Satisfaction Guaranty holds you to no time frame and does not charge you to get off the program.
How long does it take to get funded?
Generally, once you have been approved you can be funded within 2 business days.
Once I’m on the program how fast will advances be made?
In most cases, within 24 hours.
Do I sell all of my receivables to the bank?
As a business owner you are the best person to determine your cash flow needs, the bank does not require that you sell all of your receivables only what you need.
What are the bank’s basic requirements of a client?
We’re looking for quality businesses that can improve profitability by increasing working capital.
How long do I have to be in business to be a State Bank client?
Our clients range from relative start-up to well-established firms.
Can I speak to current customers?
Absolutely, we have several customers willing to share their experience with State Bank, please ask and we will provide references.
Who is State Bank?
State Bank is a private bank headquartered in La Grange, Texas with offices across central Texas from Austin to Houston. As a Texas State-chartered, FDIC-insured commercial bank, State Bank offers the security and continuity needed in today’s rapidly changing financial environment, coupled with customized personal service.
We capitalize on our advantages as a private institution to excel in a select range of services. State Bank specializes in providing merchant banking services to small and medium-sized companies. As a wholly-owned subsidiary of Texas United Bancshares, Inc. (TXUI), traded privately over-the-counter, we are provided with a flexible balance sheet which allows us to render the services required to truly support our clients. Since the bank’s establishment in 1868, State Bank has proudly preserved a reputation for quality service, business expertise and rigorous professional standards. Our streamlined structure allows us to operate rapidly and efficiently, and every one of our clients receives customized treatment of the kind that most banks reserve for only their biggest accounts.
Can the bank provide me with other services?
As a full service financial institution committed to serving the needs of business customers just like you, we have a range of business friendly products specifically designed to help your business do more business.
How can the bank offer this type of service at such low rates?
- Low Cost of Capital—Checking accounts provide us with our ‘raw materials’. Most factoring companies get their funds by borrowing from banks to then in turn loan to you. Why use a middleman? Go directly to the source!
- No Middle Man! State Bank has a proprietary system—most banks who offer this type of service use a third-party vendor who may charge the bank a large portion (some times up to 50%) of your service charge to ‘market and help run’ the bank’s program. For the other banks to get an acceptable rate of return they have to charge you significantly higher rates. Not at State Bank, our program is totally independent and ran by experienced, in house professionals. Go directly to the source and avoid higher fees.
What criteria does the bank use to set the fee?
- Projected Dollar Volume "going through" the program
- Turn of your historical and projected receivables
- Number of customers
- Average Invoice Size
What is the reserve account and how is the reserve rate set?
The reserve account is an interest bearing savings account set up at the bank to protect you in case of any bad debt that might occur. Generally, the reserve rate is 10%; that means at any one time you will have 10% of the amount of outstanding invoices in the bank earning you interest. How many factoring companies pay interest on your reserve? None that we know of! We set the reserve rate by looking at several factors including historical and projected turn of receivables, dilution rates (returns, disputes, etc.) and credit worthiness of customers.
Once I’m on the program how often can I submit invoices?
As often as you choose, whenever you normally invoice your customers is the best time, the bank accepts invoices 24 hours a day by fax and can generally process and fund your invoices the same day.
Where and how does my money get funded?
As part of the program, you will have an operating account with our bank. We fund directly into that account at no charge to you. At your request we can wire funds directly to the account of your choice for our regular wiring fee.
Once I’m on the program how do I keep up with the accounts I’ve sent to the bank for funding?
We send out daily and weekly reports to keep you well informed of the status of your customers. Anytime anything happens on your account, e.g., customer payments, invoice advances, credit memos, or charge backs, we send you a report on the same day. Additionally, we send you a detailed invoice aging once a week, however we can send out any report whenever you request.
What happens if a customer is past due?
First you should know that the bank is not a collection agency and we will not get on the phone and harass your customer. we know that your relationship with your customers is sensitive and best handled by you. We will keep you well informed of the status of your past due accounts and will expect you to maintain the collection of those receivables. We do, on a very regular basis, send out past due statements. These statements are sent out monthly and have proven very effective in speeding past due payments. In the rare occurrence when those statements are not successful, the bank can then exercise a number of collection options, including: past due letters, demand letters from outside counsel, or the filing of a lawsuit against your customer, if necessary. These steps are not automatic and you will be consulted before any collection actions are taken.
What happens if a customer does not pay?
After exhausting all means of collection we agree upon, in the rare occurrence that an invoice becomes 90 days past due that invoice is charged back against your reserve account. If we subsequently receive any payments you will receive 100% of the recovered amount.
Once on the program will I have access to decision-makers?
Our streamlined structure allows us to operate rapidly and efficiently without unneeded layers of corporate bureaucracy and far away loan committees and executives. Every one of our customers receives the kind of customized treatment most banks reserve only for their largest clients.
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