Liquidity ratios all business owners should know

by Ed Lette

Business Bank of Texas

Ed Lette is Founder, Vice Chairman of the Board of Directors at 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

What You Need To Know About External Benchmarking

by Ed Lette

Business Bank of Texas

Ed Lette is Founder, Vice Chairman of the Board of Directors at 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

UCC Filings: What Business Owners Should Know

by Ed Lette

Business Bank of Texas

Ed Lette is Founder, Vice Chairman of the Board of Directors at 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.

Federal law has a large section of interstate commerce laws called the Uniform Commercial Code (UCC) which, among other things, provides for lenders to see what other lenders have secured as collateral for a business loan. Normally this is all collateral other than real estate. There are several forms within the UCC that business owners should understand because they affect their ability to secure future loans.

Topics: Operations, Featured, Management, The Corner Office, Articles, Accounting & Finance

Introducing our new contributor: Social Security expert Dave Zander

by Ed Lette

Business Bank of Texas

Ed Lette is Founder, Vice Chairman of the Board of Directors at 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.

Topics: The Corner Office

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SBA 504: Good for Borrowers and Lenders

by Ed Lette

Business Bank of Texas

Ed Lette is Founder, Vice Chairman of the Board of Directors at 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.

While stories abound about government programs that are wasteful and ineffective, the SBA 504 loan program is a refreshing exception that has helped thousands of small businesses. It has provided badly needed capital to borrowers while offering the credit enhancement that banks need to keep the money flowing. It allows for greater flexibility than its cousin, the SBA 7a loan, which I wrote about in an earlier posting. It doesn’t require that business assets other than the property being financed to be pledged as collateral.

Topics: The Corner Office

Some Inconvenient Truths about SBA 7a Loans

by Ed Lette

Business Bank of Texas

Ed Lette is Founder, Vice Chairman of the Board of Directors at 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.

Since its founding in 1953, the U. S. Small Business Administration has helped thousands of small businesses thrive and grow. By guaranteeing up to 90% of loans to small businesses, the SBA has enabled banks to expand their commercial lending, helping to create jobs and boost the economy. There are two main programs offered by the SBA, the “7a” loan and the ”504” loan. While both of these programs can be beneficial, there are some pitfalls in the 7a loan programs that every prospective borrower should understand before taking the plunge.

Topics: The Corner Office, Business Bank of Texas News

Bigger is Not Always Better

by Ed Lette

Business Bank of Texas

Ed Lette is Founder, Vice Chairman of the Board of Directors at 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.

Sometimes when I am telling the Business Bank of Texas story, people are surprised and even doubtful to hear that our bank can help businesses with the same products and services as the big banks. In reality, our smaller and more responsive organization, dedicated only to serving the banking needs of businesses, can be even more effective.

Topics: The Corner Office

A Customizable Bill Pay System for Your Business

by Ed Lette

Business Bank of Texas

Ed Lette is Founder, Vice Chairman of the Board of Directors at 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.

As businesses grow, they often find that their control structure needs become more complex. This is usually because of an increased need to ensure that money is spent responsibly. Often, this means the need for multiple people to sign off on larger expenses, or for one person to have access to multiple accounts. But unfortunately, many banks’ bill pay systems don’t easily allow for complicated or customized control structures.

Topics: The Corner Office, Business Bank of Texas News

Not All Commercial Banks are the Same

by Ed Lette

Business Bank of Texas

Ed Lette is Founder, Vice Chairman of the Board of Directors at 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.

Big banks such as J.P. Morgan Chase & Co., Citigroup, and Bank of America are telling their largest customers- including major corporations and hedge funds- that they will begin charging fees on accounts that have been free in the past, the Wall Street Journal reports.

Topics: The Corner Office

How to Close Out 2014 Successfully

by Ed Lette

Business Bank of Texas

Ed Lette is Founder, Vice Chairman of the Board of Directors at 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.

A Checklist For Business Owners

Our colleague Adrian Van Zelfden prepares this report annually and we are pleased he makes it available for us to share with you. Adrian is both a licensed CPA and tax attorney located in Austin, Texas. Adrian has also been an active member of the Texas Society of CPAs for a number of years.

Topics: The Corner Office, Content Type

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