How a business selects the right bank.

As today's business world grows increasingly complex, companies shift their focus from competing locally to competing globally. Regardless of their size, a majority of businesses are now maintaining an online presence, working with international markets and using greater foreign sourcing and offshore production centers.

Banks have also shifted their focus in order to better serve their clients by staffing with trained officers who understand what it takes to compete in international markets. These officers understand banking strategies for managing cash.

For example, a banking officer serving a global company often has to consider currency exchange strategies and create a risk management plan for payment streams from both letter of credit and open account terms. Some banks, such as Union Bank of California, work with foreign credit insurance brokers and carriers as well as diverse U.S. government programs to provide the critical tools necessary to support customers With the rapid changes in the trade environment, it's not easy to keep up with new customs requirements, advances in automation and the best ways to cut costs. Global companies can respond quickly to new challenges and opportunities and save time and money by consulting regularly with a knowledgeable trade banker.

Not only will a good trade banker handle trade transactions with speed and accuracy, they also will provide real-time information so documents and products may be tracked at every stage of a transaction and details ranging from price to settlement status may be checked. They will also offer guidance on how to comply with new trade regulations, such as security concerns that have resulted in shorter timelines and more extensive information requirements for customs reporting. A good trade banker also will introduce the client to the latest Web-based trade finance tools.

To be sure, today's global company requires customer products and a consultative approach from their bank in order to compete in world markets.

Minimize Risk

When doing business internationally, it's important to protect a company against losses due to sudden shifts in foreign currency exchange rates. This requires a company to craft a foreign currency exchange strategy with risk management safeguards. With the proper safeguards in place, using foreign currency to bolster sales opportunities and drive revenue are sound business practices.

Many companies rely on foreign currency exchange services every day to conduct business. That's why it's important to choose foreign exchange advisors who can provide timely market forecasting and overnight access to currency markets, as well as advice on areas of special interest.

The foreign exchange market is the world's largest and most volatile financial market, with more than a trillion dollars in foreign currencies traded daily. Business owners can take the chance that the market will go their way, but will see better results and minimize risk if they work with a foreign exchange expert (FX advisor) to manage exposure according to the company's risk profile. A good FX advisor will immediately indicate whether an international purchase is cheaper in dollars or in the local currency. They can also help obtain consistent, quality market information, minimize earnings volatility, improve gross margins and recommend when to use hedging instruments.

Manage Cash Flow

Business owners should choose the right banking services to streamline collections and disbursements and make the entire operation more efficient. In addition to basic services like check processing, sophisticated imaging and Web-based products, business owners should look for responsive staff in both servicing centers and relationship management who are knowledgeable about their specific industry and company, and who place a priority on quality.

Businesses looking for convenience and better control over payables should look for a bank that has made a serious investment in Web-based cash management. This includes not only online account information, but also a full range of options--from stop payments and check inquiries to wires, account transfers and file transmissions. Having instant access to their account 24 hours a day, seven days a week helps businesses manage cash flow and gives them a better sense of where they are at financially. That's the ultimate control.

Choosing the Right Bank

A bank is a company's key business partner. A banker should be a financial consultant that can offer more than simply products. Business owners want to have someone in their corner who will review the company's business plan, suggest strategies and help grow the business. Whether the need is for leasing, bank lines of credit, subordinated debt or asset securities, the banker should be able to provide or locate such services for the client. Partnering with a bank that offers sound advice on financing, investments, cash management and foreign exchange benefits optimizes a company's opportunities for success.

Putting Money to Work

Like any good portfolio, finding the optimum balance of risk and stability for a company's investments is key. By working with the bank's professional relationship managers and traders, business owners develop and implement an investment strategy and portfolio mix based on their risk tolerance. These professionals should be able to access a wide variety of high-quality investment vehicles, including government/agency securities, mortgage-backed securities, money market instruments, bond instruments, corporate securities, tax-exempt securities, derivative products and more. Additionally, the business owner should be sure the bank representatives are readily available when needed.

Individuals not sure whether their bank provides these services should ask to meet with a bank officer and find out what they need to know in order to make the right choice for their company.

Mary Allis Curran is market president for San Diego and Orange County commercial banking for Union Bank of California. For more information or to find out how Union Bank of California has earned its reputation for outstanding service, please call Mary at [phone].