cash management - fasold
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Cash Management Solutions for the
Real Estate Industry
Presented by:
Bernadette Knight, Treasury Product Sales Manager, SVP
Lyndie Fasold, Treasury Product Consultant, VP
INVESTMENT AND INSURANCE PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NO BANK GUARANTEE • MAY LOSE VALUE
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Agenda
• Introduction
• Challenges of the Real Estate Industry
• Cash Management Solutions & Flow
• Cash Management Product Offerings for Real Estate Industry
• Questions & Answers
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Challenges of the Real Estate Industry
Managing information on bank accounts
Collections from tenants
Streamlining the payment process
Bank account reconciliation
Safeguarding bank accounts
Segregation and reporting of tenant funds
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Treasury Cash Management Solutions
Work with clients to help manage the complexity of today’s business environment
through the development of credit and cash management solutions that are designed to:
• Minimize Risk
• Maximize Returns
• Increase Operational Efficiency
Regardless of your company’s technology level, financial institutions offer a suite of
solutions for each step of the way.
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Disbursements
5
Cash Management Flow
Collection
Check
ACH
Wire
ACH
Check
Wire
Electronic Banking
Investments
Borrowings
Lockbox
Deposit
File
Manual
Domestic
International
Include customized summary
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Electronic Banking
Accurate, real-time account information reporting daily
Virtual Access via the Internet
Convenience, available 24/7 - when and where youneed it
Constantly reviewed and updated security features
Information Reporting
- Reporting of Account Balances and Transaction Details
- Notification of Same Day Account Activity(Wires and ACH)
- Positive Pay Exception Report (FraudPrevention Tool)
The power of information is delivered via Online Banking
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Electronic Banking
Transaction Initiation
- ACH Origination
- Foreign and Domestic WireTransfer Initiation
Additional Modules
- Transaction History Retention
- Bill Payment Capability
- Various Transaction and CashManagement Reports
The power of information is delivered via Online Banking
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Electronic Banking
Funds Transfers - Domestic
Manage time critical payments with confidence
• Same day availability
• Initiate with ease via the Internet
• Move domestic and international funds througha single sign-on
• Ability to set multiple layers of security available
• Schedule recurring and future-dated domesticwire transfers
Funds Transfer - International
• Issue payments in over 90 currencies
• Real time online foreign currency exchangequotations
• Array of Applications include:– International employee compensation– Commercial payments– Overseas expenses
Payment Services
Automated Clearing House (ACH) Services
Cost effective payments with next day availability
• Reduce cost and float vs. paper remittances
• Convenient and secured delivery channels via the Internet or direct transmission
• Various payment applications
– Direct deposit of payroll
– Vendor payments
– Expense reimbursement
– Pension / dividend / commission payments
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Electronic Banking
Two-Factor Token Authentication at sign-on
In addition to entering a user ID and password, users enter a token generated password during sign-on and when processing certain financial transactions.
128-bit SSL Encryption
Account / User Administration
System administration capabilities including “Tiered” system administration to allow assigning one of six levels of authority to designated administrators; Maker-Checker capability is also available for administrative transactions
System administration audit report & user entitlement report
Account / User Administration – Business Settings
Tailor system time out period
Set and adjust password expiration period for business
Wire Transfer / Transfer Approvals & Models
• Multiple approval levels possible to segregate transaction initiation/release authority
• Wire models available
Control / Fraud Prevention
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Chicago, IL
New Castle, DE
Los Angeles, CA
Dallas,TX
Uniondale, NY
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Nationwide hub with strategic sites
– Los Angeles, CA
– Dallas, TX
– Chicago, IL
– New Castle, DE
– Uniondale, NY
24/7 operation at all sites processing over 40 million payments per month
Use of unique zip codes to maximize cash flows
Use of advanced, image-based processing platform
– Reduce collection float
– Provide timely and accurate
information of receivables
Check & invoice data capture
for upload into A/R system
Near real-time internet access
to checks & remittance information
Collections - Lockbox Overview
Lockbox Services are ideal for companies looking to accelerate and automate
the receivables process.
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Collections - Lockbox Overview
How Does Lockbox Work?
Payment mailed USPS Courier Pick-up LBX Processing Facility
Data is consolidated
Checks go to the transit process
Data delivery to Customer
And into the payment
system for collection
• Dispatch
• Data transmission
• Integration with other A/R
• Images via CD-Rom
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Collections - Lockbox Overview
Key Features
Imaging technology
– Front and back view of checks, coupons
and wholesale remittance documents,
including invoices and correspondence,
and envelopes
– Online images available next day
Simultaneous access to multiple users
– Images of critical documents provided to
multiple users within your company
simultaneously via CitiBusiness Online
Seven-year archive
– Transactions available online immediately
for 90 days
– Transactions aged over 90 days are
available within four to eight hours of query
– Variable online image retention option is
available for up to 120 days
Benefits
Maximized funds availability
– Reduced mail, processing andavailability float
– Accelerated check clearing
– Multiple daily deposits
Optimized mail collection
– Up to 11 post office pickups daily
– Unique five-digit zip code reduces sorting time at post office
– High-speed sorters read and automatically sort to the box level
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Collections - Remote Check Deposit
Benefits
• Efficient – Significantly speeds collections and eliminates the photocopying or microfilming
involved in preparing checks for deposit
• Convenient – Virtually removes all geographic limitations and extends same day deposit
window with cut-off times to 8:00 pm local time
• Streamlined – Consolidates deposits, decreases clearing times and provides faster
notification of returned items.
• Cost Effective – Virtually eliminates trips to the branch, courier expenses and mail float, as
well as reduces account and deposit adjustment fees.
Remote Check Deposit * is a fast, reliable way to take advantage of all Check 21 has to offer – the
convenience and security of making image-enabled deposits directly into your Citibank account without ever
leaving your office
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Collections - Remote Check Deposit
1. Connect a piece of hardware called a check
scanner to your desktop/laptop, similar to
connecting a printer.
• One scanner to one PC
2. Scan checks
3. View images online via an internet base application
4. Approve, adjust, rescan as necessary
5. Transmit images for deposit
• One/many locations can deposit to one/many accounts
• Unreadable images will not be accepted for image deposit
• Variable “maker/checker” options
• No direct access to deposit account
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How Does RCD Work?
Remote Check Deposit (RCD) Overview
Things to Consider:
• Maximum items per deposit patch –
300 Items
• Need to develop a process
to manage and maintain
original checks
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Collections - Remote Check Deposit
Substitute Check (IRD)
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Collections/Payments - ACH Origination
ACH transactions are electronic, value-dated debits or credits that are exchanged among
participants. The Automated Clearing House Network can reach virtually every financial institution in the
United States.
Citibank is a leader in providing ACH Origination Services, regularly ranking among the top
providers in volume according to rankings published by the National Automated Clearing House
Association (NACHA). In 2008, Citibank initiated an average of 10.2 million ACH credits and 60 million
ACH debits monthly carrying a total value of approximately $70 billion USD.
• Files can be initiated online or via direct transmission
• Reduce cost and float vs. paper remittances
• Support for direct debit, payment, tax and direct deposit applications
• Secure options for transaction initiation
• ACH return information is available via electronic banking
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Account Reconciliation Services
Basic Reconcilement• Monthly statements of check issued
Partial Reconcilement• Detailed information on all checks paid to your account
Full Reconcilement• Checks are matched against issue file provided by client
Positive Pay• Checks matched against issue file provided by client• Discrepancies / exceptions reported to client for payment decision
Reconciliation plans designed to meet your risk management requirements.
LOW RISK HIGH RISK
BasicPartial
FullPositive
Pay
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Account Reconciliation Services & Safeguarding Accounts
Basic Reconcilement Service
Paid Check Listing Summary by Transaction Report
Partial Reconcilement Service
Paid Check Listing Duplicate Checks Report Stop Payments on File Report
Summary by Transaction Report Reversal Report Stop Payments Placed Report
Paid Checks Proof of Report Stop Payments Deleted Report
Full Reconcilement Service (All Basic and Partial Reconcilement Reports Plus):
Back-Value Detail Report Paid and Outstanding Checks Report Issuance Listing Report
Proof of Outstanding Report Outstanding Checks Report Paid Without Issuance Report
Positive Pay Service
• Issuance Information received daily or at time of check issuance
• Paid information matched daily: Amount, Check Serial Number and Payee
• Unresolved exceptions reported to customer for “Pay or No Pay” decision
• Key product for reconciliation and fraud protection
Reconcilement Services and Reporting
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Account Reconcilement Services
Sample file upload screen
Sample decision screen
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Safeguarding Accounts - ACH Services
ACH Debit Block
An ACH Block is a systemic means to force the return of any debit sent via the Automated Clearing House
to a DDA prior to posting of the entry.
• How does it work: Accounts flagged for this service will have all debit entries automatically returned
to the sending bank as "Not Authorized".
ACH Debit Filter
ACH Filter Service is essentially a Block on an Account plus electronic authorization(s) per client
instructions allowing certain Debits to pass on to posting.
• How does it work: An ACH Filter is a systemic means to selectively allow debits to pass into posting
based on predetermined criteria such as sending company ID and maximum dollar amount allowed.
Items that do not pass the criteria will be returned to the sending bank as "Not Authorized".
Minimize fraud with ACH Blocks & Filters
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Security Deposit Accounts
Via an Online platform you can manage tenant funds in segregated accounts
• Maintain Control account in the name of the property and Sub accounts for each tenant
• Interest credited monthly
• 1099 tax information mailed to Control or Client account holders
• Consolidated Account Statements containing the Control and all linked Client accounts are mailed to Control account mailing address
• Online sub account opening
• No fee or service charge
Control tenant funds with ease and confidence
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Thank You!
Bernadette Knight – 718.248.3092 Bernadette.Knight@citi.com
Lyndie Fasold – 203.975.6122 Lyndie.Fasold@citi.com
Important Disclosures
Citigroup Inc. (Citigroup) and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it
is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer
should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
All banking, commercial loans and credit lines are provided by Citibank, N.A. (Citibank), an equal opportunity lender, or its banking or lending
affiliates. All credit products are subject to satisfaction of Citibank’s underwriting guidelines and credit approval. Fees and conditions, including
minimum balances, apply to some products and services. Some products and services are provided by third parties not affiliated with Citibank, N.A.
Citibank, N.A. is not responsible for such parties’ performance.
Securities are offered through Citigroup Global Markets Inc. Member SIPC.
©2009 Citigroup Inc. Citibank, N.A. Member FDIC. CitiBusiness, Citi and Arc Design and Citibank and Arc Design are trademarks and service
marks of Citigroup Inc. or its affiliates and are used and registered throughout the world. Citibank, N.A. and Citigroup Global Markets Inc. are
affiliated companies under the common control of Citigroup Inc.
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