Cash Concentration is the perfect tool to maximize your business cash flow. Use Merchants Bank’s Cash Concentration to bring cash from multiple accounts and banks together into a central account so you can better manage it and put it to use. We use low-cost, electronic Automated Clearing House (ACH) transactions to consolidate your balances efficiently and cost effectively. 

How does Cash Concentration Work?

  • Initiate Cash Concentration using Merchants Bank Commercial Online Banking. ACH transactions are created that automatically debit your outlying accounts and move the funds to your concentration account. 
  • Funds in the main checking account are available for use.
  • You can print detailed reporting on your concentration activity. 

Benefits of Cash Concentration

  • Eliminate or reduce idle balances in outlying accounts; may also be used in conjunction with a Loan Sweep to minimize interest expense 
  • Pooled cash maximizes overnight investment opportunities and reduces the need for short-term borrowing
  • No more waiting for mail processing and float delays
  • Save money by using lower-cost ACH transactions instead of wire transfers

Which businesses should use Cash Concentration?

Your business would benefit from using Cash Concentration if you:

  • Have multiple locations, subsidiaries, branches, or lockbox locations depositing to accounts at multiple banks
  • Are interested in increasing control over their cash resources
  • Use available cash for overnight investment or daily loan pay down 

To get started, contact a Treasury Management Specialist, Commercial Banker. or fill out our form below. 

Additional Resources:

Learn more about our other Treasury Management tools for collection, which help you collect and manage payments from your customers or vendors.

* Subject to approval