Ed Lette

Business Bank of Texas

Ed Lette is a Founder of Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.

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About Ed Lette

Business Bank of Texas

Ed Lette is a Founder of Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.

Why a guidance line of credit is great for manufacturing companies

by Ed Lette

Business Bank of Texas

Ed Lette is a Founder of Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.

In past articles, I’ve shared why a line of credit can be a great growth tool for any business, and compared the benefits of using a line of credit instead of a credit card. Business Bank of Texas offers several different types of lines of credit to business owners, including accounts receivable, inventory, and guidance lines of credit. Today, we’ll be examining what a guidance line of credit is, and why they’re useful for manufacturing companies.

What is a guidance line of credit?

A guidance line of credit serves as a perpetual approval for a predetermined period of time, which is usually a year or less. It’s a commitment from the bank to finance assets for you (the customer) as you need it. When your manufacturing business secures a guidance line, the bank has approved credit for you, and you can use it —as needed — at any point throughout the year.

The 3 Financial Statements You Need to Keep Your Banker Happy

by Ed Lette

Business Bank of Texas

Ed Lette is a Founder of Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.
 

Whether you’re looking to get a line of credit, plan for tax payments, or simply identify strengths and weaknesses within your business, keeping clear and accurate records is vital for business owners to succeed.

But managing your company’s finances can be daunting, and there are many ways your financial reporting can get on the wrong track (just check out Dwayne Kolly’s recent post to see what not to do). To make sure your finances run as smoothly and accurately as possible, it helps to simplify.

There are three primary financial statements business owners need to focus on to ensure their companies operate effectively.

Topics: Business Best Practices, Bank Customer Tips

Granting business trade credit in 5 steps

by Ed Lette

Business Bank of Texas

Ed Lette is a Founder of Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.

Taking these five steps when granting trade credit to your customers will minimize credit risk and improve your overall accounts receivable collections efforts.

Step 1: Credit Application from Your Customer

Your credit application doesn’t need to be complicated, but it should help you gather information necessary to make a good credit decision. The application should indicate the legal name of the business and ownership; provide banking information, and information on trade credit grantors. Business often provide a preprinted “bank and trade references" list to you, but the importance of your application is that the customer, by signing it, grants you permission to contact their bank and trade creditors for payment history.

Topics: Operations, Featured, Management, Articles, Accounting & Finance

Business Owners and the Importance of Trusted Advisors

by Ed Lette

Business Bank of Texas

Ed Lette is a Founder of Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.

Business owners tend be pulled in various directions. They have to make important financial decisions on an almost daily basis. And oftentimes, those decisions are in areas outside of their expertise. For that reason, it’s important that business owners have advisors - subject matter experts who can be trusted to provide insight and direction into financial matters that business owners are unfamiliar with. Specifically, there are four main people business owners need to be able to have transparent conversations with regarding finances: an attorney, a CPA, an insurance agent and a banker.

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Liquidity ratios all business owners should know

by Ed Lette

Business Bank of Texas

Ed Lette is a Founder of Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.

Weve written several articles about the importance of regular financial benchmarking (both internal and external) for the health of a business. Of all the financial benchmark ratios a business owner could use to measure the financial health of their business, liquidity ratios may be the most important.

Topics: Featured, Management, Blog Posts, Strategic Planning, The Corner Office, Accounting & Finance

Alyssa Becker named Assistant Vice President — Operations

by Ed Lette

Business Bank of Texas

Ed Lette is a Founder of Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.

The Business Bank of Texas Board of Directors has officially appointed Alyssa Becker to the title of Assistant Vice President — Operations. Ms. Becker has been with Business Bank of Texas for over 4 years. During her tenure with us, Alyssa has worked in lobby services and as an assistant controller.

Topics: News

What You Need To Know About External Benchmarking

by Ed Lette

Business Bank of Texas

Ed Lette is a Founder of Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.

Is your business as profitable as it could be? Are you spending a reasonable amount considering how much you're bringing in? Could you be doing things better or more efficiently?

If you run a business, questions like these probably come to mind on a regular basis. With all the other responsibilities you're balancing, it's entirely possible for such thoughts to enter your head fleetingly and then get buried under everything else you have to do – but they shouldn't.

Topics: The Corner Office, Content Type

How equity and debt work together in your company

by Ed Lette

Business Bank of Texas

Ed Lette is a Founder of Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.

Most companies need a combination of equity and debt (from time to time) to stay healthy and thrive. Often, business owners choose not to get equity from a third party. Instead, they try to grow their equity from within.

Equity is the “at risk” capital in a company. Shareholders inject equity, either when the company starts or from time to time when necessary. Profits left in the company on a permanent basis also contribute to equity.

Topics: Management, Accounting & Finance

Year in Review: The Best of the Business Resource Center in 2016

by Ed Lette

Business Bank of Texas

Ed Lette is a Founder of Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.

We published many articles this year from our Business Resource Center contributors on a variety of subjects pertinent to business owners. In case you missed these, here are a few helpful posts to catch up on as you plan for 2017:

10 End-of-Year Accounting Reminders for Business Owners

by Ed Lette

Business Bank of Texas

Ed Lette is a Founder of Business Bank of Texas. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career. Ed serves as director of the Texas Bankers Association District 4, chairman of the Executive Advisory Council to the School of Business at Texas Lutheran University, and is a life member of the Texas Association of Business.

The end of the year is a crucial time for business owners to ensure that they have proper documentation. With so much to do in addition to running your business, it can be easy to let certain tasks slip through the cracks. In past years, a CPA who is a friend of the bank has provided a thorough and comprehensive ebook to remind business owners of all the tasks they need to complete to close out the year. The following ten items are among those that our CPA friend advises business owners examine prior to December 31st: 

Topics: Accounting & Finance

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