OSB’s Flexible Financing Creates Opportunity for Small Businesses

Ted Schork, Vice President, Commercial Banking at OSB shares how our community banking philosophy has helped one local business succeed.

“A key benefit of community banking for small businesses is our willingness and ability to be flexible in the financing solutions we offer. I was recently reminded of this when OSB had the opportunity to serve one of our long-term, residential mortgage clients who also operates a small, family-owned business which has been part of our community for more than twenty years.

The business is co-owned by a father and his son and daughter-in-law. It provides excavating, logging and trucking services. Earlier this year, one of the company’s main customers indicated that two of its other subcontractors would no longer be providing trucking services due to their retirement. This customer needed to find another subcontractor to take on the additional work and contracts. They offered this opportunity to our client.

To be able to capitalize on this opportunity, the client needed to purchase another semi-truck, a trailer and logging equipment for their business. They approached our commercial lending team with their financing needs and the desire to keep as much of their current cash position as possible for working capital. Typically, a loan requires using a good portion of cash as equity or a down payment. Instead, OSB worked with this client to utilize the equity in their other vehicles and equipment to structure a loan that met their needs.

Creativity and flexibility in OSB’s approach to commercial lending helped to create a “win-win” situation and the ability to honor our commitment of serving our clients for the long haul.”

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OSB’s Business Manager Can Help Your Business Accelerate Cash Flow

Businesses of all sizes need to have access to working capital in order to operate and grow. OSB Business Manager makes it easy for businesses to increase their cash flow by providing much-needed working capital for your receivables. By bridging the gap between your payables due now and the receivables your customers won’t remit for 30 days or more, our Business Manager program positions your company to leverage growth opportunities, offer extended credit terms, take advantage of supplier discounts, and reduce debt.

OSB’s unique Business Manager program allows your business to operate with confidence and receive cash deposits in its operating account every time an invoice is submitted, giving you quick access to the money you are owed—regardless of whether you receive payment in 30, 60, or 90 days.

By using OSB’s Business Manager your cash flow will be accelerated, so you don’t have to worry about having funds available to make payroll, staff appropriately, purchase new equipment, upgrade technology or meeting other needs related to growing your business or seizing new growth opportunities. You will also be able to take advantage of potential vendor discounts for upfront or cash payment, volume purchases, and timely payments.

Business Manager is Different from Invoice Factoring
While you may have heard of, or even used a program that sounds somewhat similar to Business Manager (perhaps something that may have been referenced as “invoice factoring”), be assured that this service is very different—and provides significantly more benefits to your business in terms of lower costs, flexibility, and the ability to maintain direct contact you’re your clients. There are additional benefits that make Business Manager a better alternative for most businesses including:

  • Lower fixed costs and no additional fees or APR financing charges.
  • Acceptance of invoices with longer payment terms.
  • More frequent funding (daily vs. weekly)
  • No intermediary to deal with—you work directly with OSB.
  • No long term contracts or cancellation penalties.
  • Maintenance of your client relationships and retention of the collection process stays with your business—your customers never deal with us, just you.
  • Your business retains billing ownership—only the remittance address changes to that of the bank.

Business Manager Works for Businesses of All Sizes in a Diverse Range of Industries OSB’s Business Manager program is designed to meet the needs of businesses in a wide range of industries, all with their own unique needs.

Here’s an example of how the program supports the day-to-day operations and growth of one type of business: A mid-size trucking company that wants to leverage new market opportunities but has limited working capital to support its growth. With the Business Manager program as a debt free receivables financing solution, the company can access higher line limits and higher advance rates. This benefits the business by accelerating its cash flow, allowing it to add additional trucks and take on additional contracts without worrying about the extra working capital needed to cover the increased payroll and fuel expense. As a result, the business has increased sales by 300 percent in two months and continues to pursue additional growth opportunities.

Position Your Business for the Future with Help from OSB’s Business Manager Program

More information about Business Manager can be found online. Our business banking team is also happy to answer any questions you may have about using our Business Manager program to help your business access needed working capital and take advantage of future growth opportunities. Contact us today.