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Manage and extend access to cash.

Which solutions are the best? It depends upon your industry and your specific business.

Once you’ve optimized your working capital by accelerating receivables, extending payables and protecting your cash from fraud, it’s time to make the most of your working capital. Good financial health for your business means striking the right balance with having readily accessible cash, investing cash for returns and leveraging credit to augment your cash flow. To strike this balance, corporate treasurers need the right set of tools to holistically manage working capital — from securing working capital through the extension of credit to managing and preserving liquidity. Which solutions are the best? It depends upon your industry and your specific business.

Benefits of generating additional working capital

Generating additional working capital has many valuable benefits for your business, including:

  • Increased levels of operating cash flow
  • Accelerated debt payments
  • Lowered borrowing costs
  • Greater investment in capital expenditures
  • Improved efficiency metrics/ratios

But easy access to your cash for these purposes is not always a guarantee, especially if you’re seeking to invest your company’s liquidity.

Compartmentalize cash by type and use

With significant changes to money markets and modifications in banking regulations, treasurers increasingly find value in banking solutions that compartmentalize cash and provide appropriate access. While the majority of your cash is likely going toward your payables, segmenting excess cash into reserves for near-term use and strategic cash for long-term use is key to an optimized liquidity management strategy. Ideally this strategy also prioritizes preservation of principal and access, while generating a competitive and appropriate yield.

Augment your daily cash with credit

Even with the most optimal working capital management practices, your business may still experience cash shortages. That’s where credit comes in. By utilizing credit to augment your daily cash, you can avoid dipping into your reserve or strategic cash, keeping your investments working for you.

Managing and extending your access to cash begins with a partnership with your banker to review your organization’s financial health and identify which best practices will benefit you most. The working capital management experts at Texas Capital Bank can help you discover what works best for your organization. You’ve worked hard to optimize your working capital. Now make it work smarter.

Key considerations to manage and extend cash

Businesses should carefully determine how cash is placed to ensure sufficient access by considering the following:

  • Access – Ensure you have access to cash that is not dependent on external transactions, such as securities transactions. Direct and immediate access to cash will always be of high value to your company.
  • Timing – Determine if delays in liquidating cash could result in timing constraints that could pose a risk to your daily cash management operations.
  • Restrictions – Understand the restrictions on distributing cash from investment instruments, and keep a close eye on how they change with the market, especially in periods of market stress.

Schedule an appointment.

Begin your partnership with Texas Capital Bank today, starting with a conversation about how our experts can empower your business.


Texas Capital Bank will not be responsible for any consequence of reliance upon any opinion or statement contained herein nor for any omission. Neither Texas Capital Bank, nor any of its employees provide tax or legal advice to outside entities.