Protecting your business assets and fighting fraud
WSFS Bank has several strategies for helping business owners maximize their finances and keep their assets safe.
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As a business owner, developing a solid strategy is a critical component in achieving success.
A solid strategy can often survive the impact of inflation and rising costs, two challenges that businesses have had to navigate especially over the past couple years.
WSFS has a few suggestions on how to develop and implement a strategy to manage the current economic climate.
- Find a Balance with Your Balances: Many small businesses have loans or lines of credit, while they also have cash reserves. Depending on the interest rate being paid on a loan or line of credit versus your savings rate, it may be more profitable to either save more while rates are rising or pay extra on your loan if you are locked into a low enough interest rate.
- Lean Into Your Assets: Some successful small businesses
- Don’t Shy Away from Re-investing: While rising interest rates can be a cause for concern, re-investing in your business for long-term growth shouldn’t be ignored.
- Real Estate: For business owners who don’t own their small business’ home, real estate could be a good investment. Owning real estate for your business can be a great ROI driver.
- Equipment: With a fall 2022 WSFS Bank Small Business Trends study finding that 45% of small businesses are planning to purchase equipment in the next year, that could be another great investment opportunity.
The ability to keep your money safe is another important aspect.
To safeguard against threats like fraud or market volatility, ensure your business’ money is protected in Federal Deposit Insurance Corporation (FDIC) eligible accounts.
FDIC insurance is designed to enable bank customers to place their money at FDIC-insured banks across the United States, with the backing of the Federal government.
Maximizing your coverage is of the utmost importance.
All accounts owned by a corporation, partnering or unincorporated entity at the same bank are added together and insured up to $250,000.
Business accounts that are FDIC-insured include: checking accounts, savings accounts, money market deposit accounts, Certificates of Deposit (CDs), cashier’s checks, money orders, and official items issued by a bank.
Having the right banking partner can also make a world of difference in safeguarding your money.
Three key things to consider are: the banking partner having a diversified business model with a strong deposit base and limited exposure to any one industry; knowing your banker, not just the bank; and building a strong liquidity position to ensure your business has access to cash you may need at a moment’s notice to cover necessary expenses.
Overall, WSFS provides four key things to keep in mind when fighting fraud:
- Remain diligent in all forms of fraud.
- Be extra cautious for suspicious emails containing links and attachments.
- Be aware of unsolicited wire transfers and DocuSign requests.
- Be leery of robocalls, calls from the IRS, unexplained debit and credit card transactions, and personal tragedy story scams related to the Silicon Valley and Signature Bank failures.
Having both short-term and long-term strategies will pay huge dividends in increasing the likelihood of your business’ success.