FAR - Monthly Luncheon Highlights

FAR Monthly Luncheon Highlights

Highlights from the FAR’s April 2025 Luncheon, “Exploring Financial Pathways: Credit Options, Cash Management and Banking Fee Insights.”

As you think and plan your check-in meetings, consider having an annual routine whereby at least one meeting per year is to review services and receive the latest in industry trends in receivables, payables, liquidity and information reporting. Have a couple people from your team who work the A/R, A/P, Reconciliation, and/or liquidity management. So often, there is excellent and productive idea-generation when you use a whole-team effort. For example, the person processing A/P might articulate a very specific nuance, challenge, or wish list. By articulating these directly to the Cash Management banking person, the fix is at hand.
Pricing is often based on the depth and breadth of the relationship. Deposit balances are a key driver.
Tools to maximize liquidity: Should you have a shorter-term need, consider a Bridge Loan, or consider a 90-Day Note. Corporate Card programs help extend payables by 28 days. Further, Card programs typically earn decent rebate dollars. Letters of Credit save an association from placing a cash deposit for its office lease, project bonding, or Workers Comp.
Your banking relationship is a relationship, and your bank should be invested as such and be responsive and take the time to listen and understand your mission, business, cyclicality, and strategic goals.
Always confirm a bank communication that is not from your relationship team. Beware of spoofed phone number calls and fraudulent text messages including an access code that appears to be from your Bank.
Remember the 5 Cs of Credit that driver a bank’s risk assessment: Character, Capacity, Capital, Collateral, Conditions.
Whenever you engage your banker about potential lines of credit, be prepared to tell your organization’s story (this concept was covered in the CFO panel last month) – don’t distort any negative trends but explain them in a way that helps your banker advocate for you. (Your banker should be your advocate, and they need to be able to convey your story to their credit underwriting and approver partners.)
When it comes to credit, your Relationship Manager should be your advocate within their bank. Keep them in the loop on any major strategic changes or challenges in your operations. Help them to advocate for your organization’s needs by telling your organization’s story effectively. Don’t overlook any negative trends, but present key points that helps them understand how your organization will help mitigate risks.
Fraud prevention starts at the top of every house. The concept of being cautious and thoughtful should be ingrained and reinforced throughout the organizational chart.

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About FAR MONTHLY LUNCHEON Events

In-Person Luncheons Schedule: Held monthly, luncheons are generally scheduled from 11:30 AM - 1:30 PM the second Wednesday* of each month from January to June and September to November. Convenient Washington, DC locations will vary.

Registration:

These events are open to Nonprofit Members, Nonprofit Non-Members, and Resource Members. Nonprofit and Resource Member attendance is free of charge (included in FAR’s return to a package membership model). There is a fee for nonprofit non-members, currently $85.00.

Size and Format: An educational presentation with an expert moderator facilitating a panel of IT, finance, HR, and operations experts, followed by interactive roundtables discussions.

Credits: FAR in-person luncheons programs are evaluated for CPE and CAE credits ensuring they meet the requirements for fulfilling the professional development requirements to earn or maintain the Certified Association Executive credential. Every program that we offer which qualifies for CAE credit will clearly identify the number of CAE credits granted for full participation, and we will maintain records of your participation in accord with CAE policies.

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