Cash Management services accelerate the collection of accounts receivable and structure or delay the payments of accounts payable. These services are used to build up large amounts of cash in short periods of time to generate additional income or reduce expenses for the company.

• Three Primary Components
• Cash Management Services
• Cash Management Process
• Oxford's Business Internet Banking
  
  

Three Primary Components

1. Cash Concentrations

• Lock Boxes (Remittance Processing)
• A.C.H. (Next Day Electronic Transfers)
• Wire Transfers (Same Day Transfers)

2. Disbursement Systems

• Z.B.A.s (Zero Balance Accounts)
• Remote Disbursements
• Controlled Disbursements
• A.D.R. (Advanced Debit Reporting)

3. Information Management

• Telephone Balance Reporting
• Direct Data Transmission Via PC
• Third Party Reporting (N.D.C. or C.D.C.)

Cash Management Services

Lockbox Services
Oxford Bank’s Lockbox Services offer your business quick access to your accounts receivable. Instead of having your customers mail their remittances to your office, the payments are directed to a post office box established by Oxford Bank. On a daily basis we retrieve your incoming payments, process them at the bank, and credit them directly to your commercial checking account. By having your customers mail their remittances directly to a bank-controlled post office box, you can accelerate the speed of depositing the funds into your account.

Oxford Bank’s Lockbox Services allow you to put your money to work for you in a quick and efficient manner. By processing your accounts receivable directly at the bank, you reduce the burden on your staff. You have the opportunity to utilize your staff for other opportunities within your ongoing business. Coupled with a Sweep Account, your Lockbox generated funds can earn more interest even faster because of how quickly the balances are credited to your account.

Safety is a concern with any business. By utilizing the Lockbox Services, you are provided a total audit trail. You separate the payables and receivables function, creating a valuable deterrent to fraud.

Sweep Accounts
One key objective for businesses is to maximize earnings. With an Oxford Bank Sweep Account, your business can accomplish this objective by utilizing the excess balances in your checking account to earn additional interest.

The service is simple: a target balance is assigned to your checking account, which is intended to cover your business’ normal daily transactions, i.e., check clearings, transfers, etc. The collected balances in excess of the target balance are then “swept” each evening into your business’ investment account. Because the system is totally automated, you do not have to do anything. If the balances in your checking account are greater than your target balance requirement, the excess funds are transferred to the investment account. If the balance in your checking account is less than the target balance, funds are transferred from your investment account into your checking account to bring the balance to the level of the target. Your excess funds will earn interest for you at all times.

Key advantages:

• Your business’ excess funds earn interest automatically
• No extra work for you or your employees
• Interest is earned daily and credited monthly
• Your statement combines the two accounts (checking and investment), giving you a complete picture of your balances)

Zero Balance Accounts
Concentrating funds to maximize investment opportunity has always been a fundamental precept of cash management. Zero Balance Accounts (ZBA) allow businesses the ability to disburse funds for payroll, accounts payable, dividends, etc. while funding these disbursements only when the checks are presented at the bank. By utilizing a ZBA, businesses can maintain their funds in a single account, allowing the maximum investment benefit of having all of their funds in one place.

In a typical situation, a company might have a concentration account (master/ general account) and a payroll account. The payroll account would be a ZBA. Checks written are drawn on the payroll account; however, the funds to cover these checks are transferred from the concentration account, leaving the payroll account at a zero balance. By funding the payroll account in this manner, your business maintains its balances in a single concentration account and maximizes funds available for investment or earnings credit.

Oxford Bank will establish a concentration (master) account which can support multiple ZBA accounts. On a daily basis, transfers are made from the concentration account to fund the ZBA accounts.

ACH Origination
In today’s computer savvy world, settling accounts payable and payrolls as well as accelerating accounts receivable is the proven choice of a growing number of businesses like yours. Oxford Bank has assisted many companies to improve cash flow through the proper use of the Automated Clearing House (ACH) network.

ACH Credits

• Payroll
• IRA distributions
• Dividend payments
• Pension payments
• Vendor payments
• Federal and State Tax payments

The most common form of ACH is Direct Deposit of Payroll. With Direct Deposit, you can pay all of your employees via ACH with one debit from your corporate account and multiple credits to the individual employee accounts at their financial institutions. This process is affordable, easy to reconcile with one debit to your account rather than multiple checks, and eliminates the potential of check fraud, while at the same time providing convenience to your employees.

ACH is available to help businesses like yours make the exchange of money for services more efficient and help your business handle accounts payable and accounts receivable more efficiently. You want your time spent doing what you need to do – running your business and Oxford Bank can help! That’s why the electronic movement of money in this manner is recommended. The ACH network is the nation’s largest electronic payment system operated through the Federal Reserve Banks. Transactions are immediate, saving numerous steps and handling procedures. Because ACH is processed electronically, transactions can be made anytime 24-hours a day, seven days a week.

Oxford Bank offers a variety of tools to create and deliver ACH files. Whatever the size of your company, we are here to help customize an ACH solution to fit your specific business needs.

Account Reconciliation
Account Reconciliation is an accounting function performed for your business by Oxford Bank to assist in balancing your commercial checking account. Our Account Reconciliation Service helps you manage your checking accounts in a timely and efficient manner.

Oxford Bank offers various options ranging from simple numeric fine-sorting of checks to a full reconciliation detailing checks issued, paid, and those still outstanding.

Account Reconciliation can help:

• Companies sending over 500 checks per month
• Companies needing a single account to support multiple operating units or divisions
• Companies spending excessive amounts of time reconciling their accounts

The benefits of having Oxford Bank provide your Account Reconciliation are numerous:

• It saves your business valuable time for other productive tasks
• It saves your business costly expenses associated with the manual reconciliation of your checking accounts
• It allows your business to separate the disbursement function from the reconciliation function improving audit controls and reducing the potential of fraud
• It provides information in sequential format for fast and easy reference

With Account Reconciliation, you or your service provider transmit to Oxford Bank a file of checks your business has issued. Oxford Bank will then match this file with your company’s checks that have been paid. From this comparison, Oxford’s Account Reconciliation system will generate a report showing paid checks and checks still outstanding, in serial number order. For a small fee this report is delivered at your direction daily, weekly, or monthly.

Cash Management Process

Further Explanations

Lockbox Account
Your company's remittances are mailed directly to our Post Office, North Suburban Sectional Facility. Daily, Oxford Bank & Trust picks up your mail, prepares your deposit, and forwards your receipts.

Cash Concentration Account
Once your deposited checks have cleared and your electronic deposits have been received, your General Disbursement Account would be maintained by us at a target balance sufficient to cover all banking services. This will eliminate the payment of checking account service charges. Your other accounts will be maintained at a zero balance.

Cash Manager - (Daily Cash Investment Account)
This "sweep" account allows you to maximize the use of your funds by automatically investing, on a daily basis, any collected balances in excess of a pre-determined target balance required to cover the cost of servicing the account. Your excess funds are invested into US Government Security Repurchase Agreements through Goldman Sachs. This investment program is tied directly to your business checking account and is totally automated.

Zero Balance Accounts
On a daily basis, as checks clear, we will automatically transfer funds back to each account, sufficient to cover each day's check clearings. This will save you time and money, as well as eliminate the need for you to make internal transfers to fund disbursements, or to manually invest your excess funds.

Oxford's Business Internet Banking

Our Internet Banking product allows financial managers to better utilize and manage their cash position. With Oxford's Business Internet Banking, managers can perform routine banking functions in various accounts from the convenience of their office.

System Applications

• Get up-to-date balance and transaction information on your checking, loan, and investment account.
• Review up to 45 days of transaction history on checking, loans, and investment accounts.
• Perform one-to-one, one-to many, and many-to-one transfers between accounts.
• Full support for ACH payments and collections, including Federal and State tax payments
• Perform Wire Transfers
• Place stop payments on a check or a range of checks
• Make loan payments
• Download your transaction information into popular accounting software packages
• Pay invoices with our easy to use Bill Payment feature
• Communicate with Oxford Bank via secure messaging

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