Blog   Commercial Banking

UMB Insights: Payments Landscape

  |  Posted by

Each year, there are 200 billion transactions that equal nearly 100 trillion dollars. Learn more about the challenges and opportunities facing the payment landscape today, such as:

  • Innovation
  • Behavior
  • Globalization

Continue Reading

Mr. Thelen is executive vice president of Treasury Management for UMB. He is responsible for treasury management sales and products, international services and capital markets, which include overseeing client management and service, product innovation and delivery, risk and compliance. He has more than 20 years of experience in the financial services industry.



Leave a Comment

Tagged: , , , , , ,

How to finance your dental practice: the most important questions to ask

  |  Posted by

IndustryInsights_blog_555x19

As a dental professional, you’ve probably spent at least eight years in school preparing for your career (12 to 14 if you are a dental surgeon). After that, your focus will be on growing your new practice by building your patient panels and providing quality dental care to the community you serve.

dental practice financing

But what’s next? There are questions you need to ask yourself as soon as you open a practice:

  • Does your practice need remodeling or construction?
  • Do you see yourself bringing on a new partner at some point?
  • And most importantly, are you adequately planning for your retirement?
Continue Reading

As we work with dental practitioners, we’ve noticed a trend within this profession. A lack of strategic borrowing to pay for their practice’s expenses is a leading cause that prevents dental practitioners from retiring when and how they want. Only around 8 percent of dentists are able to retire and maintain the lifestyle they had during their working days.

Dental practitioners face many challenges in today’s market. Those challenges are further motivation to properly manage your funds. An important aspect of your finances is considering the best borrowing practices for your office. Some questions to consider when thinking about a loan for your dental practice:

What are your goals for your practice?
Determine where you see your practice over time. Figure out how quickly you want to grow your practice or if you have aspirations to open multiple locations. Identify a plan and partner with industry professionals who will help you achieve your ultimate objectives. Then discuss with your banking partner what financing structure will help – not hinder – this plan.

Are you borrowing with the best interest of your practice in mind?
Ask your banking partner to explain all loan options so you can align the loan structure to the best interest of the practice.  For example, some loans have a balloon payment at the end, which could require you to pay additional interest. The money you might have to pay in additional interest could be used instead to help expand the practice or could be committed to your retirement.

What are your ramp-up and wind-down strategies?
In addition to determining the long-term growth of your practice (ramp-up), you will also need to eventually consider succession and retirement strategies (wind-down). Have you considered hiring an associate to purchase your practice as a component of your exit strategy? Have you engaged a CPA firm to complete an evaluation of your practice? These are potential issues to consider as part of a succession plan.

Every practice is unique and you might even find that long-term goals change over time. Start planning early and understand what financing options are paramount for your practice. Find a banking partner who will help you determine the best loan options for your practice and your eventual retirement and succession plans.

For more financial advice, take a look at my video on Business Banking for Dentists.

 

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.

 


Dave Bauer is a Vice President / Region Manager for UMB Business Banking. He is responsible for leading the Business Banking teams in the St. Louis and Oklahoma City regions. He joined UMB in 2011 and has eight years of experience in the financial services industry.



Read One Comment

Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

UMB Insights: Being Bankable

  |  Posted by

What does a bank look for when you’re applying for a small business loan? Here are some insights from a lender’s perspective.

  • Cash flow
  • Liquidity
  • Collateral
  • Character

To learn more about small business loans and SBA loans, check out more on the blog.

Continue Reading

Mr. Karaba is a Executive Vice President for UMB Business Banking. He is responsible for Leadership of the Business Banking Business Line at UMB. He joined UMB in 2013 and has 19 years of experience in the financial services industry.



Leave a Comment

Tagged: , , , , , ,

Industry Insights: Manufacturing Efficiencies

  |  Posted by

IndustryInsights_blog_555x19

Business is good for the manufacturing industry. How can manufacturers capitalize on this growth?

 

Continue Reading

Mr. Nohavec is a SVP/Business Development Officer for UMB Bank Colorado. He is responsible for Colorado. He joined UMB in 2005 and has 20 years of experience in the financial services industry.



Leave a Comment

Tagged: , , , ,

The ABCs of SBA Loans

  |  Posted by

Small Business Loans explained

UMB SBA loans

A loan from the U.S. Small Business Administration (SBA) could be a very useful option for your company, no matter if you are just getting started or if you have been around for years.

SBA loans often allow business owners who may not normally qualify for conventional commercial loans to obtain financing. This includes those who:

  • have less available cash flow,
  • are more leveraged, or
  • have little to no history in operating their business.

However, it is important to know exactly how an SBA loan differs from other loans, what types of SBA loans are available and what to consider when deciding to apply.

How do SBA loans work?

The SBA actually does not make direct loans to small businesses. Rather, when you apply for an SBA loan, you are actually applying for a commercial loan from a bank or another partner lender, structured according to SBA requirements and backed by an SBA guarantee. (The SBA agrees to pay a certain percentage of the loan if the borrower defaults.)

SBA loan vs. a traditional loan:

  • SBA loans usually have a lower down payment requirement, but higher fees
  • collateral requirements: SBA loans might access equity on a person’s home for collateral, which most traditional loans would not do.
  • SBA loans have longer amortization periods and terms. This can lead to a lower payment for the borrower.

What Types of Loans Are Available?

  • 7(a) loans – the most common offered by the SBA and include a variety of loan programs such as SBA Express and CAPLines
  • 504 loans – used primarily for real estate and equipment purchasing

Considering an SBA Loan

Many aspiring business owners are hesitant to go through the SBA loan process. The application process and associated costs seem too daunting. We recommend visiting an SBA Small Business Development Center or SBA’s website to learn more about loan options available and qualifications. These centers can work with applicants not only on loan options, but also can provide resources for business planning.

If an SBA loan seems to be a fit, we recommend working with a banker that is experienced in SBA lending and can help expedite the application process, as well as evaluate all other loan options.

 

Continue Reading

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


Mr. Karaba is a Executive Vice President for UMB Business Banking. He is responsible for Leadership of the Business Banking Business Line at UMB. He joined UMB in 2013 and has 19 years of experience in the financial services industry.



Leave a Comment

Tagged: , , , , , ,

Do niche markets need niche banking? (The answer may surprise you.)

  |  Posted by

What do manufacturing, wholesale distribution, pipeline energy, coal mining, energy services, architecture and engineering firms, law firms, telecommunications and infrastructure construction companies have in common? They are all niche markets that require specialized support from the companies servicing them. They are also industries that have entire dedicated departments within large banks and financial services companies.

UMB Bank niche markets

As a leader at an energy services company, you might see value at first in a banking partner with a whole department dedicated to your specific industry. But what keeps you going back? Is it the number of people assigned to your account or is it the relationship you have with your bank?

I hope it’s the relationship. This is true for all industries; not just banking. If you develop business partnerships based on your relationship with the people at the company, you’ll find that the business part comes naturally. You’re creating additional value for your customers beyond the products and services.

Connecting, not just banking

In our case, we serve all of the industries described above with the same group of commercial bankers. Our bankers know how to lend to all different types of companies. Not only do we know the different industries, but we know how they all fit together.

For example, we’ve found that with our various niche market commercial clients, we can provide unique networking opportunities between them. It gives our customers a chance to develop business relationships outside of the financial industry. We can connect an architecture firm with a technology company that may have otherwise not had the chance to interact. We’re able to provide referrals between our clients; not only within their state but across our eight-state footprint.

When working with your commercial bank, you should see them as more than just a “banker.” They should be a problem-solver, an advisor, and most importantly, a partner. Working outside of your traditional expectations and putting your company’s best interest ahead of everything else should be the top priority.

Continue Reading

Mr. Anderson is President of Commercial Banking for UMB Bank. He is responsible for commercial banking, treasury management, and business banking. He joined UMB in 1986 and has 33 years of experience in the financial services industry.



Leave a Comment

Tagged: , , , , , , , , , , , , , , , , ,

Manufacturing and Technology Part IV: Q&A

  |  Posted by

IndustryInsights_blog_555x19
Our audience was filled with manufacturers with workforce issues. If you’re in the same boat, check out the answers to these common questions.

In case you missed it earlier on the blog: our expert panelists explained how they find the right employees for their organizations, reach out to high school graduates and tackle advanced manufacturing.

 

Continue Reading

Panelists:

Jon Kinning, COO, RK Mechanical, Inc.
Kim Madigan, CEO, AdamWorks
Bill Newland, CEO, Hercules Industries
Kevin Fink, CEO, Ice-O-Matic

Moderator:

Bart Taylor, Founder/Publisher, Company Week

 

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


UMB Financial Corporation (Nasdaq: UMBF) is a financial services holding company headquartered in Kansas City, Mo., offering complete banking, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona. It also has a loan production office in Texas. Subsidiaries of the holding company include mutual fund and alternative investment services groups, single-purpose companies that deal with brokerage services and insurance, and a registered investment advisor that manages the company's proprietary mutual funds and investment advisory accounts for institutional customers.



Leave a Comment

Tagged: , , , , , , , , ,

Manufacturing and Technology Part III

  |  Posted by

IndustryInsights_blog_555x19
3-D printing and advanced manufacturing are hot topics in the manufacturing and technology industry that our panelists tackled at a recent thought leadership event.

Panelists:

Jon Kinning, COO, RK Mechanical, Inc.
Kim Madigan, CEO, AdamWorks
Bill Newland, CEO, Hercules Industries
Kevin Fink, CEO, Ice-O-Matic

Moderator:

Bart Taylor, Founder/Publisher, Company Week

In case you missed it earlier on the blog: our expert panelists explained how they find the right employees for their organizations and reach out to high school graduates.

Later this month, we’ll bring you more answers to some frequently asked questions.

 

Continue Reading

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


UMB Financial Corporation (Nasdaq: UMBF) is a financial services holding company headquartered in Kansas City, Mo., offering complete banking, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona. It also has a loan production office in Texas. Subsidiaries of the holding company include mutual fund and alternative investment services groups, single-purpose companies that deal with brokerage services and insurance, and a registered investment advisor that manages the company's proprietary mutual funds and investment advisory accounts for institutional customers.



Leave a Comment

Tagged: , , , , , , , , ,

How to take advantage of your banking partner

  |  Posted by

Is your bank helping you make money?

Optimism is on the rise among business owners. This is the first year coming out of a down cycle in the economy and businesses are ready to grow. They are looking to expand operations, hire new talent and purchase new equipment. But they are also searching for new strategies, financing options and ideas for better market penetration. In today’s economy, one of the best partners a business can have is their banker. Ask yourself if your banker is:

  • bringing more to the table than monthly reports or the weekly “how’s it going” call
  • strategizing with business owners on how to expand operations, create more efficiencies and generate more revenue
  • understanding every aspect of a business, from cash flow to risk management and payroll to IT services.

Continue reading below to find out more on this topic.

Continue Reading

Here are a few areas bankers can help businesses strategically grow and profit in today’s economy.

How Does Your Cash Flow?

Most business owners talk about the importance of cash flow, but not many go deep into the process and determine how to make it better. Businesses need to ask questions such as: How many days does it take to collect on receivables? How long are you paying on collectables? Are you getting discounts for paying early?

A lot of companies are operating inefficiently.  They are duplicating internal steps or making extra steps to receive money. It costs $2 to $5 to mail a check, whereas sending an Automated Clearing House (ACH) payment costs less than $1. Businesses need to review how much time it takes to print, stuff and mail a check versus using a card or ACH payment.

By working closely with a banker, businesses can gain cash flow relief and create better efficiencies in their operations. Bankers also can help business owners create a profitable and logical cash flow system.

Risk Management and Efficiency

Risk management is exactly what it sounds like. Anything businesses can do to manage risk will ultimately benefit their bottom line. This includes having dual controls with employees, doing regular inventory checks, having different people sign off on checks and having a process to detect and deter internal and external fraud. So much risk can be diverted simply by paying attention to the small, everyday details.

Risk efficiency is something bankers also should discuss with businesses as it relates to items such as outsourcing payroll or return collections. Often times there are functions that businesses can outsource to save time and money. One of the main things to be outsourced is payroll. A payroll provider can help save a company time and money. They may also accept tax liability so the employer isn’t responsible for tax penalties.

For companies with large receivables, it may be more efficient to have a lockbox or outsourced collection system. Bankers can greatly reduce time and efforts for clients that have high receivables. Another area to outsource is IT. Businesses can outsource their IT needs to a third-party group in order to save time, headaches and money.

Creating Operational Efficiencies

Bankers understand cash and business cycles. They can help a business create operational efficiencies in several areas, including payments, cash flow cycles, commercial cards, reconciliation and so on.

One example is the process of purchasing equipment. As businesses expand their work, make repairs or replace units, they may find themselves making multiple purchases throughout the year. Rather than go through the process of taking out a separate loan for each investment, companies should map out their anticipated needs for the year and take out a line that will cover all potential investments. Not only will this save time, but it also provides flexibility to buy new or used equipment and to proactively plan for capital expenditures they may want to make during the year.

Purchasing cards are another item to consider from a processing standpoint. Not only does the right program provide valuable rewards, but it also cuts down on check writing and provides increased flexibility in cash flow. Additionally, it creates a more streamlined tracking system for accounting departments. By allowing job numbers to be attached to specific expenses, companies can easily allocate costs to the appropriate projects, which results in more effective planning and budgeting.

By working closely with a banker, businesses truly have the opportunity to expand and grow through creating efficiencies in areas they never knew could be improved. Any operational, cash or risk management improvement will ultimately improve a company’s bottom line and their outlook for future growth opportunities.


Mr. Bibens is a treasury management officer for UMB’s Commercial Deposits department. He is responsible for providing consultative technology and cash flow management solutions to companies and public entities throughout the Greater Missouri area. He joined UMB in 2010 and has 10 years of experience in the financial services industry.



Leave a Comment

Tagged: , , , , , ,

Manufacturing and Technology: Attracting a New Workforce

  |  Posted by

IndustryInsights_blog_555x19
Last month our expert panelists explained how they find the right employees for their organizations. Now these manufacturing and technology industry leaders tackle the topic of education and attracting the next generation to the workforce.

Kim Maddigan (CEO, AdamWorks) says the industry needs to reintroduce manufacturing as an appealing career option for young people in the United States. The panelists also discuss whether or not internships and job shadowing are a helpful approach.

Panelists:

Jon Kinning, COO, RK Mechanical, Inc.
Kim Madigan, CEO, AdamWorks
Bill Newland, CEO, Hercules Industries
Kevin Fink, CEO, Ice-O-Matic

Moderator:

Bart Taylor, Founder/Publisher, Company Week

Next month, we’ll bring you the panelists’ answers to some frequently asked questions.

 

Continue Reading

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


UMB Financial Corporation (Nasdaq: UMBF) is a financial services holding company headquartered in Kansas City, Mo., offering complete banking, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona. It also has a loan production office in Texas. Subsidiaries of the holding company include mutual fund and alternative investment services groups, single-purpose companies that deal with brokerage services and insurance, and a registered investment advisor that manages the company's proprietary mutual funds and investment advisory accounts for institutional customers.



Leave a Comment

Tagged: , , , , , , ,

Page 1 of 3123