Financing Structures & Treasury in the United States Aurora A. Battaglia Senior Vice President International Finance - Europe Comerica Bank November 16, 2015
2 Partnership with your Bank
Macro Considerations Consumer Spending and Confidence Solid Housing Normalizing Financial Services Industry Solid Oil & Gas Industry Retrenching Interest Rates Lowest Level Equity Markets Elevated Asset Prices M&A Activity High GDP Growth Inconsistent Strong USD Dampening Demand 3
Where to Invest? Business Environment Labour Climate Incentives Programs Corporate Tax Speed Permitting Regulatory Access to capital and funding + Skilled labor Labor Cost Workforce development Programs Quality of Life Distribution and Supply Chain Rail Access & Highways Utility Rates Airports 4
5 Jointly Engineered Solutions
Sample Account Structure Your Company Loan Treasury Management Structure Concentration Account #Account Number Master ZBA Account Name #Account Number Sub-Account Account Name #Account Number Sub-Account Account Number #Account Number Sub-Account Account Name #Account Number Sub-Account Account Name #Account Number Sub-Account 6
Comprehensive Payment & Liquidity Solution Receivables [ ] ACH [ ] Business Deposit Capture [ ] Cash Vault [ ] EDI [ ] Integrated Receivables [ ] Lockbox [ ] Merchant Services [ ] Wire Transfer Fraud Protection Layers [ ] Dual Controls [ ] ACH Positive Pay [ ] Positive Pay [ ] Alerts Payables Account Reconcilement [ ] ACH [ ] Commercial Card [ ] Controlled Disbursement [ ] EDI [ ] Integrated Payables [ ] Vendor Payments [ ] Tax Pay [ ] Wire Transfer [ ] Workplace Card [ ] Analytics Liquidity [ ] Web reporting [ ] Integrated Cash Position Manager [ ] Image Deposit/Paid Items [ ] Loan Management Deposit Accounts [ ] Sweep [ ] Target Balance / ZBA [ ] 7
What is ACH? Automated Clearing House (ACH) is a cost effective alternative for making payments that do not require sameday settlement. ACH is an electronic payment network used to process both debits and credits electronically a. ACH debitsare used when an ACH transaction is pulled for credit to your Account. A company would use ACH debit origination to debit their customer s account to satisfy a payment owed to them. b. ACH creditsare payments used when an ACH transaction is pushed. Your account is debited and your payment is sent to your vendors to pay for materials/goods/services, or employees (direct deposit of Pay, expense reimbursement). ACH Wire Requirements Domestic X X Web; Phone (wire only) International Canada Only X Web; Phone (wire only) Domestic Settlement * Future Date Same Date Cost/transaction Cents $$ Returned Yes No Process Batch Single 8
9 Payments Fraud
Online Reporting Portal Daily Visibility into Cash Balances: Current and Prior Day 10
11 Card Types
12 Check to deposit?
13 Access to Capital
Bank Financing Track Record in the Industry Established Reputation Viable Expansion Plan for the Business Company seeking Bank Financing History of Profitability Favorable Capitalization Working Capital Letters of Credit Assets purchase Corporate Cards M&A Derivatives 14
15 Lending Solutions
Advance Formulas Working Capital Term Loans - Borrowing Base Reports - A/R and A/P Agings - Interim & Annual Statements - Financial Projections - Compliance Certificates - Appraisals - Environmental Phase I/II 16
17 Creating a Plan
Thank you! Aurora Battaglia, Senior Vice President Comerica Bank International Finance 411 W. Lafayette Detroit, Michigan 48226-3329 Tel +1 313 222-5280 aabattaglia@comerica.com