Photo by Mikel Parera
In a recent article on Treasury & Risk, Western Alliance Bank’s COO Tim Boothe suggests considerations for treasury teams when conducting due diligence on prospective banking partners. Typically, a firm will be provoked to seek new banking partners when they need a new or different financing structure, so it makes sense that the treasury team will focus most attention on this aspect. But Boothe believes this is an excellent time to assess other ways to improve the company’s cash flow cycle, so other treasury capabilities should also be part of the discussion.
The five considerations he suggests are:
- Expanding the due intelligence scope beyond lending.
- Expecting banks to request visibility into the treasury function.
- Investing more time in up-front evaluation of prospective banks.
- Conducting a cost-benefit analysis.
- Integrating fraud prevention solutions.
Read his full article on Treasury & Risk, where Boothe does a deep dive into each of the above suggestions.