SELECTING THE RIGHT FINANCING - B2B CFO
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SELECTING
THE RIGHT
FINANCING
for Your Cash Flow Needs
MAKE YOUR
LIFE EASIER
With an Accounting
Software Package
CHECK 21
Clearing the Way for
Business Banking Benefits
PLUS | Online Banking for Your Business | Customer Loyalty Programs | The Business Life Cycle
Message Contents
2
Selecting the Right Financing
Cash Flow
Let’s for Your
have a
Conversation Cash Flow Needs
It really could make your heart beat faster 6 Make Your Life Easier
You probably don’t jump out of bed in the morning thinking, “I can’t wait to get to work and
With an Accounting
manage some cash flow.” While managing cash flow generally isn’t something that will get your
adrenaline pumping, it is one of the most critical aspects of operating a business – and it’s often Software Package.
one of the most neglected aspects as well. That’s why a cash flow conversation with a PNC
Business Banking relationship manager can be so valuable to your business.
At PNC, we are committed to improving our customers’ cash flow. Our approach to this is very 10 Check 21
simple: We understand that each business is unique, so we take the time to get to know your
business, and then we give you specific ideas on how to enhance your cash flow. We’ll show you Clearing the Way for Business
ways to accelerate the collection of your receivables, as well as improve your process for Banking Benefits.
making payments. We’ll also show you ways to invest your excess cash wisely, and we’ll provide
you with advanced capabilities for tracking your finances.
We’ll conduct a thorough analysis of your business checking requirements, transaction volume, 14 Putting Online Banking
deposit balances, online needs and other factors that impact your cash flow. And we’ll deliver
creative solutions – not “cookie cutter” services – based on your individual needs and goals. to Work
It’s all part of our commitment to deliver customized banking solutions that make a real for Your Business.
difference in your business. PNC Bank recently was ranked “Highest in Customer Satisfaction
With Small Business Banking” by J.D. Power and Associates in its 2006 Small Business Banking
Satisfaction Study. We are thrilled and humbled to have received this recognition from our small
business customers, and we appreciate your confidence in us and the opportunity
18 A Growing Devotion
you’ve given us to serve you.
PNC Strategies is published by The PNC Financial Services Group, Inc. Copyright
to Customer Loyalty Programs.
We are eager to apply our expertise to help you further your business © 2006. All rights reserved. No material may be reproduced in any form without the
express written permission of PNC.
success. So have a conversation today with a PNC Business Banking
This publication may provide reference to Internet sites as a convenience to our
relationship manager about ways to improve the cash position of your readers. While PNC endeavors to provide resources that are reputable and safe, we
22
cannot be held responsible for the information, products or services obtained on
business. It just might make your heart beat a little faster. such sites and will not be liable for any damages arising from your access to such
sites. The content, accuracy, opinions expressed and links provided by these
Sincerely, resources are not investigated, verified, monitored or endorsed by PNC. The Business Life Cycle
These articles are for general information purposes only and are not intended to
provide legal, accounting or financial advice. PNC urges its customers to do
independent research and to consult with financial and legal professionals before
Your business has a life cycle that’s
making any financial decisions. The opinions and views expressed by the authors
do not necessarily reflect the opinions and views of PNC or any of its subsidiaries
similar to the human life cycle.
or affiliates, nor does the inclusion of the articles in this magazine constitute
endorsements by the authors or PNC of any of the products or services of others
“Highest in Customer Jeff Schmidt referenced herein.
Satisfaction with Small
Business BankingӠ
Executive Vice President and Manager
Business Banking
Certain characters represented in this publication are fictitious and are provided for
discussion purposes. Any similarities to any person living or dead are purely coincidental. 24 PNC Product Guide
PNC is a registered mark of The PNC Financial Services Group, Inc. Copyright
© 2006. All rights reserved.
Innovative products and services
for every stage of your business.
It’s a simple reality… Considering the Alternatives
cash makes a There are three primary ways for small
businesses to acquire financing. Each has its
business run. pros and cons.
Small businesses are no different, and while 1) Lines of Credit – “The purpose of a line
almost all businesses experience peaks and of credit is to smooth out the peaks and
valleys in their cash flow, a small business valleys of financing day-to-day
can be particularly sensitive to these operations,” says Bill Payne, an angel
fluctuations. investor and entrepreneur-in-residence
with the Kauffman Foundation.
“A successful company can grow itself right > What they’re for: Day-to-day financing of
out of business without enough working business operations, such as meeting
capital,” says Jerry Mills, who advises seasonal inventory demands or covering
businesses on financing as CEO and operating expenses while waiting for
Selecting the managing partner of the consulting firm B2B
CFO/CIO. “Small businesses usually need
accounts receivable to be collected.
> What they’re not for: Large purchases,
Right Financing
some type of financing to help with their cash such as a building or expensive capital
flow needs. The challenge is finding the equipment.
for Your
right tool.” > Pros: You pay interest only on what you
Cash Flow
use. Flexible, convenient and can help
From the Lender’s Perspective pick up the slack in a cash flow crunch.
Securing financing for a small business is > Cons: If not repaid quickly, the amount
similar to acquiring financing for personal borrowed can grow to become a monthly
needs. Except for credit cards and smaller drain on finances.
Needs
lines of credit, the lender most likely will
require the financing to be secured. A small
business owner typically will use personal “A successful company can grow
assets, such as a house, or business assets, itself right out of business without
such as a building, equipment or inventory, enough working capital.”
as collateral.
2 Business Strategies 3
2) Loans – Term loans can help finance a > Pros: Very flexible. Also, can be a great
larger purchase. You will have a way to earn points for various goods and
payment for principal and interest each services, such as airline miles.
month. > Cons: Higher interest rates, as
> What they’re for: New equipment, a compared to other financing options.
building or other large purchase that Also, typically have lower credit limits
depreciates slowly. than business lines of credit.
> What they’re not for: Short-term needs,
such as payroll, office supplies or other Matching the Right Financing Tool
expenditures where the need is to Your Needs
temporary or recurring. Business financing is necessary to keep
> Pros: They typically carry fixed interest almost any business on a path to growth. It
at a competitive rate. Predictable can be tempting to tap into the most readily
payment schedules can be built into your available source of financing, but it may not
operating budget. make sense in the long run. Be sure to
> Cons: Make sure the loan term does not evaluate your cash flow needs and how the P U T T I N G P - C A R D S TO WO R K
exceed the life of the item being financing will be used, and then work with
your banker to determine
FO R YO U R B U S I N E S S
financed, or you can end up paying on an
asset that you’re no longer using. which financing option
makes the most sense Purchasing cards (or “P-cards”) can greatly simplify the process of procuring goods and
for your business. services for almost any business. Available through financial institutions and credit card
3) Business Credit Cards – Often used for
issuers, P-cards are designed to enable businesses to reduce the administrative costs and
travel and entertainment expenses, as
burdens associated with authorizing, making, tracking, allocating and reconciling everyday
well as various smaller purchases.
business purchases.
Provide the flexibility to pay in full each
month or carry a balance – but at a
P-cards allow for controlled spending for purchases anywhere that accepts a major credit card.
higher interest rate than other financing.
You should consider purchasing cards for your employees if:
> What they’re for: Widely accepted
payment vehicle that also can be used
for short-term financing when needed. > Your company makes frequent small > You use a chain of approval for all
> What they’re not for: Any use where a purchases that currently require a purchases.
loan could be obtained at a better rate requisition process or instrument, such
and with terms more suited to the as a purchase order. > You wish to allow more autonomy among
borrowing need. designated employees, but you still want
> Your employees spend a lot of time to retain controls on spending.
buying simple goods and services.
4 Business Strategies 5
Make Your Life Easier
With an
Accounting
Software Package
The behind-the-scenes work
to keep a business running
often can feel like a black hole
of endless effort.
As you grow, you find you’re spending An Essential Tool for Running > A quick and simple way to track and Features to Look for When
more and more time on tasks that seem to a Business review previous transactions. Selecting a Program
have little to do with serving and pleasing “If you are serious about your business, you There are numerous accounting packages
customers. must use an accounting program,” says > Simplified payroll and tax compliance. available. Depending on the kind of business
Dennis Piper, CPA and President of the you operate, some may be more useful
For business owners, accounting is one of certified public accounting firm Dennis Piper > Projecting the image of an organized, than others, but almost all can deal with the
those areas that can consume mountains of & Associates. properly run business in case the IRS “ins and outs” of both service businesses
time – with little apparent contribution to comes calling, as well as for potential and those that carry inventory. If you require
your bottom line. It’s one of the most critical Piper says accounting software programs business partners or investors. specialized accounting or billing features –
yet complex tasks you face. It’s your window can satisfy a myriad of important needs for something that’s common in the medical
into the health of your business, and it any business owner, including: industry, for example – packages like
helps ensure you are complying with ever- QuickBooks® have tremendous third-party
changing state and federal tax laws. Luckily, > The ability to review income statements, support with software plug-ins to meet the
“If you are serious about your
today’s accounting software packages have balance sheets and other reports to needs of your business.
business, you must use an
made the task easier than it’s ever been for monitor the health of your business and
both the do-it-yourselfer and those who rely
accounting program.”
plan intelligently for growth.
on an accountant.
6 Business Strategies 7
The three most popular choices – Peachtree > Popularity – The leaders enjoy ASSETS & LIABILITIES OF
Complete, Quickbooks® Pro and MYOB widespread adoption, making it easy for
P O P U L A R ACCO U N T I N G
Business Essentials™ Pro – all cost less than
$300 to start, and they compete feature for
your accountant to work with the data
and help you keep your books in order.
PAC K AG E S
feature. As you evaluate your choices, You can e-mail a backup copy to your
consider the following: accountant, have him or her review the There are more than a dozen business accounting software packages on
file and resend it to you without missing the market. Here are four of the most popular, along with a brief
> Support and Ease of Use – Many a beat. summary of the key features of each package:
programs have tutorials included or
available online, set-up “wizards” and Consult With an Expert Quickbooks® Pro
extensive built-in “help” functions. Some Before you select an accounting software > The most popular, by far, and familiar to almost any accountant.
include a block of initial phone support package, consult with your accountant or an > Easy-to-use set-up “wizards.”
and the ability to purchase additional accounting professional. Many accountants > Extensive third-party support to customize package for your
support in a package or as needed. specialize in one of the popular packages, business.
such as Quickbooks® or Peachtree, which
> Flexibility – Your business probably will ultimately can make your life a lot easier. Peachtree Complete
change over time. You may convert from They can help you select the package that’s > Offers many product options customized by industry – such as
a sole proprietorship to a corporation, best for your business, and they can provide construction, manufacturing and non-profit – right out of the box.
or you may want to begin carrying ongoing support to help you get the most out > Includes four levels of software, from basic entry-level businesses
inventory or tracking job time. A package of your program. to multi-user mid-size enterprises.
that offers only basic functionality may
not serve you down the road. MYOB Business Essentials™ Pro
> Extensive reporting functions, as well as key summaries illustrated
> Reporting Functions – Look for the with pie charts, bar graphs and other diagrams.
ability to view and customize reports the > Allows users to create in-depth profiles of both customers and
way you want. Each business is different. contacts.
Today’s packages offer dozens of > Strong Macintosh support.
reports, so be sure the one you choose
can do what you need. Microsoft™ Money
> Entry-level package offers less flexibility and fewer features, but
may be a smart choice for home-based businesses.
> Good for people who commingle personal and business finances.
8 Business Strategies 9
Check21
Clearing the Way
Business
for
Banking Benefits
If you know only a little about the Check The original items are truncated at some
Clearing for the 21st Century Act – more point in the clearing process, allowing the
commonly known as “Check 21” – you might payment information to move swiftly across
think its sole impact on your business is that the country. When the electronic transaction
your canceled checks gradually are being is converted back into paper, the result is a
replaced by paper “images” of your original substitute check.
checks. In reality, however, the act includes
a number of measures that are paving A substitute check is the legal equivalent of
the way to make business banking more the original check and can be used just as
convenient, efficient, secure and economical. the original check might have been. No party
– not even the Internal Revenue Service –
This Substitute is as Good can refuse to accept a substitute check that
as the Original meets Check 21 requirements. It’s also
The most noticeable impact of Check 21 – important to note that no financial institution
which became effective in October 2004 – can refuse to accept a substitute check
has been those replacement images, called presented to it for payment in the check-
“substitute checks.” Check 21 has made it clearing process. Thus, individual business
easier for financial institutions of all types or consumer accounts cannot “opt out,” or
(from banks to savings associations to credit refuse to accept substitute checks in lieu
unions) to process payments electronically. of their original items.
10 Business Strategies 11
The Check’s No Longer allowing you to take more immediate action
in the Mail to minimize and even prevent losses. This R E M OT E D E P O S I T – I T ’ S L I K E
Electronic check processing reduces the doesn’t mean you should drop your guard
and assume fraud will be detected earlier in
A T E L L E R I N YO U R LO B B Y
need to transport checks physically from one
location to another and decreases the every case.
chance of a delay caused by outside forces
such as weather, transportation problems, It’s Only the Beginning One of the most appealing aspects of Check 21
In addition to clearing the way for greater
etc. With the increasing cost of gasoline and
business banking ease and efficiency, Check 21
for businesses is bringing the idea of remote
jet fuel, the reduced use of trucks and planes
to move checks can help control the costs of is opening the door for banks to develop new deposit one step closer to reality.
check clearing. programs that enable customers to make
deposits electronically (please see sidebar Remote deposit allows a business to capture images of checks upon receipt and
article). With these and other benefits on transmit them to the bank for deposit. Check images are scanned into a PC at any
Businesses that take advantage of “check
tap, Check 21 ultimately will enable you to business location, and they then can be transmitted electronically to a financial
safekeeping,” where their financial
reduce the time you spend on day-to-day institution for deposit at any time of the day or night – eliminating the need to race
institution archives their check information,
banking activities. to the bank to make a deposit. Additionally, many business accounting software
can access their canceled checks when
packages now include features to capture remote-deposit transactions for posting.
necessary. This can be done by directly
contacting the institution to request a fax
Check 21 has made it acceptable
copy or by taking advantage of online access
for financial institutions to
to check images for printing and/or
accept electronic images of
downloading to a PC. In this way, a substitute
checks, and many banks are
check is treated as the equivalent of an
making plans to use the new law
original canceled check – but without the
to make things easier on their
hassles of handling and storing canceled
customers. According to a
checks.
survey recently conducted by the
Community Bankers of America,
Helping the Fight Against Fraud
41 percent of all U.S. banks
Check 21 also provides additional protection
plan to have remote-deposit
against check fraud, since electronic check
capabilities available to their
processing may enable financial institutions
business customers by 2008.
to identify fraud earlier in the process –
12 Business Strategies 13
Putting
Online Banking
to Work for Your
Business
For many people,
owning a business is a
dream; however, the
demands on today’s
business owner can
turn into a nightmare if It’s Like Money in the Bank are taking advantage of online banking in transfer funds and pay bills online, as well as
When it comes to managing cash flow and growing numbers each year. A survey manage accounts receivable and pay taxes
not managed properly. the day-to-day financial activities of a recently conducted by Greenwich Associates automatically. Online banking also can
business, utilizing online banking is a great indicated that the portion of U.S. small provide you with 24/7 access to an instant
Gone are the days of the business that closes way to save time and boost efficiency. As any businesses utilizing online banking snapshot of your financial picture.
its doors at 5 p.m. each day. Even the savvy business owner knows – increased increased from 43 percent in 2003 to
smallest of firms can go global and be a 24/7 efficiency is like money in the bank. 66 percent in 2005. A Full Spectrum of Benefits
operation with the help of the Internet. Add “Online banking provides small business
the everyday tasks of managing a staff, Banking online is not a new phenomenon. In If you’ve not yet discovered the benefits of owners the flexibility they need to effectively
marketing your business and overseeing fact, online banking has been the fastest- online banking for your business, consider run their business,” says Mylle Mangum,
the financials, and it can become an growing Internet activity in the United States everything it can do for a small business CEO of IBT Enterprises, which provides
overwhelming burden for any business owner. over the past five years, and businesses owner. A business can review statements, consulting services for the financial services
and specialty retail industries.
14 Business Strategies 15
To truly realize the full spectrum of benefits > Linking Multiple Accounts – Electronic
that online banking delivers, a business banking allows a business to link its
owner needs to look no further than their various bank accounts. This makes
checkbook. Virtually everything that you transferring funds more convenient,
need to do with your business banking which can ease a cash-flow crunch.
account(s), you can do more efficiently
online. And that’s just the beginning. Check > Payroll and Tax Services – Online
out some of the specific advantages of using banking can be set up for various payroll
online banking: services, including direct deposit, and to
pay certain taxes.
> Anytime, Anywhere Account Access – BANKING
Online banking offers a quick, Manage Your Company’s ON
convenient and easy way to access your Finances on Your Schedule
account(s) and monitor balances Perhaps the most significant benefit to using SECURITY
anytime of the day, anywhere Internet online banking for your business is the WHEN
ability to regain precious time. Owning a
access is available.
business may be a lifelong dream, but it
YO U ’ R E
> Online Statements – You can access shouldn’t keep you up at night. With online ONLINE
statements for all of your accounts banking, the bank is always “open,”
online, and most banks allow you to whenever and wherever you need it – saving
Banks typically have some of the most stringent online security policies, with strict data
access past statements as well. you time and making the job of managing
encryption and authentication procedures to keep your sensitive business information private.
your company’s finances more convenient
> Online Bill Payments – Online bill pay In fact, according to a recent study conducted by Javelin Strategy & Research, online banking is
and more efficient.
services deliver payments to vendors actually more secure than traditional banking. Nevertheless, there are things you can do to
with a few clicks of your computer maintain your security online as well:
mouse. You can pre-schedule your bills
to be paid in advance, and you can set up > Read and understand your bank’s online security policies.
recurring payments to be deducted
automatically each month – saving time > Don’t fall for copycat bank Web sites. Scammers create Web sites with similar names to
and postage while avoiding late fees. trick consumers into revealing personal information.
> Treasury Management Services – If your > Do not provide your bank account number to anyone over the telephone or Internet, unless
business has multiple locations and you initiate the contact.
multiple accounts, an online banking
solution that offers wire transfers, as > Be “password smart.” Create hard-to-guess passwords that include both letters and
well as Automated Clearing House, numbers and keep your passwords secret.
lockbox and electronic collection
services, can save you time and money. > Log off of your banking Web site immediately after completing your banking.
16 Business Strategies 17A Growing Devotion
to
Customer LoyaltyPrograms
But the days when an effective loyalty
It seems like everyone program meant giving away a free
An Investment That Pays
Big Dividends
from the local pizza parlor submarine sandwich for every 10 subs sold
A well-run customer loyalty program can be
to the swankiest downtown are long gone. With smart cards, radio-
a tremendous asset to virtually any type of
frequency identification tags and wireless
retailer has a customer point-of-sale technology proliferating, a new
business, whether you market to the public
or to other companies.
loyalty program today. age of customer loyalty programs is upon us.
Regardless of your customer base, loyalty
According to Jupiter Research, more than
programs can provide a treasure trove of
75 percent of American consumers have at
valuable information on purchasing habits
least one loyalty card, and at least one-third
and preferences – but they do require a experts agree that the cost of generating a
of all U.S. shoppers are estimated to carry
significant investment of energy and sale from a new customer is four or five
two or more loyalty cards. It’s obvious that
resources. times greater than the cost of generating a
customers love the benefits of loyalty
sale from an existing customer, it’s easy to
programs, but it’s also becoming apparent
According to Gartner Research, U.S. understand the payoff. Companies like eBay
that loyalty programs are reaching their
companies spent more than $1.2 billion on and Harrah’s Entertainment credit their
saturation point – leaving businesses to
loyalty programs last year. In the loyalty programs as the keys to their new
wrestle with a variety of questions regarding
supermarket industry, where loyalty revenue growth, but the majority of
the implementation of these programs.
programs are relatively sophisticated and companies still are struggling to get it right.
mature, their costs average between 1 and
1.5 percent of total revenues – and the Sorting Through the Options
percentage is greater in other industries. There are frequent-flyer programs,
According to Gartner Research, U.S. frequent-shopper cards and frequent-diner
companies spent more than $1.2 billion That type of investment poses a costly coupons; there are pump points, holiday
on loyalty programs last year. question: are loyalty programs worth it? turkey giveaways and donations to charity in
When you consider that most marketing a customer’s name; and there are club
18 Business Strategies 19cards, VIP cards, advantage cards and smart In well-run programs, customer profiling is
cards. With an almost endless array of used extensively to identify a company’s most G E T T I N G C U S TO M E R LOYA LT Y
program options, how exactly does a profitable customers – and then to anticipate PROGRAMS RIGHT
business determine what type of loyalty and motivate their purchasing behavior.
program makes the most sense? According to Musante, 20 percent of a
company’s customers generally are responsible
More and more businesses are implementing
“We see too many businesses implementing for 80 percent of its income, and it’s imperative customer loyalty programs each day, but many
customer loyalty programs without the to the success of any business to be able to
are struggling to get it right.
proper amount of planning and recognize and rewards its best customers.
strategizing,” explains Louis Musante, Here are some key considerations to keep in mind when developing a customer loyalty
managing partner of Echo Strategies, a “Let’s face it – not all customers are created program for your business:
customer loyalty consulting firm. equal,” says Musante. “No business has
unlimited resources, so it’s absolutely essential Establish measurable objectives for your program. Are you trying to drive repeat business,
“First, do some research with your to know which customers warrant the greatest increase purchase volume per visit, generate referrals, etc.?
customers and establish some measurable allocation of your resources.”
objectives for your program. Next, take a Take a look at what your competitors are offering with their loyalty programs and devise
look at what your competitors are doing and Another Brick in the Wall something that’s different from theirs.
figure out a way to differentiate your For all of their benefits, even the most effective
program from theirs. Finally, be sure your customer loyalty programs cannot ensure Offer “reward points” rather than cash discounts. Points have a higher perceived value
top management is firmly committed to the customer loyalty. But a loyalty program can than the dollars that they’re actually worth.
program. Successful loyalty campaigns serve as another tool in your efforts to enhance
require an ongoing investment of time and cash flow – providing you with a valuable Make sure the rewards you’re offering are desirable
money, and it can be extremely counter- foundation for maintaining, and growing, a to your specific customer base. Do some research to
productive to pull the plug on a loyalty dedicated customer base. determine what motivates your customers.
program after a short period of time.”
“You cannot buy customer loyalty, and a loyalty Keep the program fresh and exciting with a constant
Profiling Your Success program does not create loyal customers. You variety of activities to involve your customers.
In addition to generating repeat business create loyal customers with everyday excellence Refresh your reward offerings regularly.
from customers, loyalty programs enable in your product and service offerings,”
companies to collect a multitude of concludes Musante. “Creating loyal customers Use the program to collect data on your customers’
information about their customers and their also requires a thorough understanding of the purchasing habits and interests. Don’t just hand out
purchasing behavior. This data can be used purchasing behavior of your customer base, and static discount or “punch” cards.
to understand, profile, target and market to that’s the most valuable deliverable you can
customers – as well as customize future derive from a customer loyalty program.” Make sure your program is properly funded and
communications and promotions based on management is committed to it. You can alienate
each customer’s profile (a record of their customers by canceling a program once you’ve
buying habits and preferences). started it.
20 Business Strategies 21The Business Life Cycle
Your business has a life STARTUP PNC Solutions TRANSITION
Hold on tight. > Money Market and Sweep Accounts It’s Time to Decide Whether to
cycle that’s similar to You’re in for the ride of your life. > Collection and Payment Sell Your Business, Take It Public,
the human life cycle. Your focus is making sales, building a Management Services Liquidate It or Pass It on to
customer base, establishing a market > Business Lines of Credit, Your Family.
Think about it: you’re born, you grow, you
presence and implementing a business plan. Loans and Commercial Mortgages Your focus is capturing value, reducing risk
mature and eventually you make a transition
Your big challenge is cash flow. Your needs > WorkPlace Banking and Other and developing a transition plan for your
to your ultimate objective – maybe a beach
include credit, cash management tools and Employee Benefits Programs business. Your big challenges are securing a
house on Captiva or a little place along the
insurance against unexpected losses. > IRA and Retirement Planning realistic valuation of the company and
fairways in Pinehurst. Every stage in the
dealing with the emotional aspects of exiting
business life cycle has its own challenges –
PNC Solutions MATURE the business. Your needs include estate
and opportunities – and PNC Bank is there
> Business Checking Your business is a success, and you planning, family trusts and long-term care
with the financial services, technologies,
> Online Banking and Bill Pay want to maintain the momentum. insurance.
expertise and solutions to support you every
> Merchant Services Your focus is protecting your market
step of the way.
> Business Credit Cards, Lines of Credit position, adding new products and services PNC Solutions
and SBA Financing and expanding into new markets. Your big > Business Valuation
> Business Insurance challenges are increased competition and > Business Succession Planning
changing customer tastes. Your needs > Business Continuation Planning
GROWING includes risk management, international > Trust and Estate Planning
You’ve successfully navigated financing and investment advice. > Family Wealth Management
the pitfalls of the startup years.
Now you have a new set of PNC Solutions Delivering the Solutions for Each
challenges ahead of you. > Treasury Management Services Stage of the Business Life Cycle
Your focus is hiring key employees, > Capital Markets A PNC Relationship Manager can deliver the
establishing policies and procedures, > Personal Investment solutions you need throughout the life cycle
growing market share and fine-tuning your Management Services of your business. We support you with an
product and service offerings. Your big understanding of the different financial
challenges are escalating overhead and challenges of every stage of business, and
Important Investor Information:
payroll costs. Your needs include increased Securities and brokerage services are we provide you with access to the products,
provided by PNC Investments LLC.
credit, working capital, employee benefits Member NASD and SIPC. Annuities services and planning to meet your evolving
and other insurance products are
packages and customer loyalty programs.
offered by PNC Insurance Services, personal financial needs and goals.
LLC, a licensed insurance agency.
1-800-PNC-6111 PNC Investments is a subsidiary of
www.pnc.com PNC Bank, National Association.
22 Business Strategies 23Fast Find
24 > Cash Flow
27 > Personal Finance
27 > Financing
29 > Value Added Services
PNC Product Guide
CA S H F LOW Conducting Everyday Business*
We can help you choose the right checking account to handle your specific needs.
Effectively managing cash flow is one of the sweep account allows you to keep enough
most critical aspects of operating a business, money in your checking account to cover all Business Enterprise Checking1
Free Business Checking1
and PNC Bank offers a wide range of business day-to-day expenses and automatically invests Are you just getting your business started? Your daily transactions are growing as fast as
tools to enable you to meet virtually any cash any excess cash at the end of each day, while Or maybe you don’t have a lot of transactions. your business.
flow need or challenge. maintaining the security of FDIC insurance to the > No minimum balance or monthly > No monthly maintenance fee when you
maximum permitted by law. maintain an average monthly collected balance
maintenance fee
of $10,000
Keeping Liquid* Business Certificates of Deposit
Options include multi-term CDs with automatic Business Basic Checking1 Analysis Business Checking1
Liquidity – Cash you have on hand or assets If your business is active, with high transaction
renewal, variable-rate CDs and CDs that allow Okay, your banking needs are still pretty basic,
that can be easily converted to cash now or in the but you want more options than our Free volumes and substantial balances, your higher
near future. withdrawal of funds after the first seven days with balances can work for you to offset fees.
Business Checking has.
no penalty. To give your business flexibility in > A la carte pricing — you only pay for the
Premium Business Money Market managing its cash flow, we offer terms from as > No monthly maintenance fee when you services you use
maintain an average monthly collected
The amount of money in your account deter- short as seven days to as long as 10 years. > Multiple accounts combined on one detailed
balance of $2,500 monthly statement
mines your interest rate based on current
money market rates—and rates can increase as Making & Collecting Payments
your balance grows. Improve your cash position by simply streamlining What comes with a PNC Business
your systems for paying bills and collecting from Free Business Business Analysis
Checking Account Business Basic Enterprise Business
Treasury Enterprise Account 1
your customers. Checking Checking Checking Checking
Not just a checking account, this package allows
you to manage your cash efficiently, help reduce Remote Deposit For Business Combined transaction items free each month 200 300 500
your business’ costs, improve cash flow and Now you can deposit checks for your business Cash deposited free each month Up to Up to Up to
simplify your accounting. This package meets without making a trip to the bank! Remote $5,000 $10,000 $50,000
the needs of larger companies with significant deposit lets you make (transmit) deposits at your Free Online Banking2 and Free Bill Pay Yes Yes Yes Yes
deposits, multiple checking accounts and the convenience — 24/7 right from your place of Free Visa Check Card with Reward Points 14
Yes Yes Yes Yes
flexibility to invest excess cash deposits. business.4 Free up more time in your day — time Free next-day funding on Visa and Yes Yes Yes Yes
better spent on running your business. Ask your MasterCard payment transactions
Business Lines of Credit2 PNC Business Banker how remote deposit can with PNC Merchant Services3
Instead of waiting until your money is tight and be a simple and secure way to make check Free global ATMs Yes Yes Yes
Product Guide
you need financing, request a line of credit when
Product Guide
deposits. 25% discount on Clarke American checks Yes Yes
things are going well. You’ll have easy access by
Merchant Services3 Merchant Services discounts6 Yes
check and flexibility when it comes to rates,
repayment schedules and secured, unsecured PNC Merchant Services® offers more than credit Free first order of Clarke American checks Yes
and overdraft protection options. and debit card acceptance. Our solutions encom- Earnings credit rate used to offset fees Yes
pass traditional non-cash acceptance, gift cards, Free Personal Performance Checking Account15 Yes Yes
Business Sweep Checking* statement and reconciliation tools, e-commerce (Limit 10 per business)
If you normally have more money in your busi- options, Electronic Check Acceptance® (ECA®) and Free overdraft protection set up1 Yes
ness checking account than you need to cover more! Services are backed up with one-on-one Loan origination fee discount1 Yes Yes
your daily operating expenses, let that extra customer service 24 hours a day, 365 days a year.
cash work for you with a sweep account. A Plus, receive free next-day funding for payments See PNC Bank’s “Account Information - Business Checking Accounts and Related Charges” document for further information. Bank deposit products
1
provided by PNC Bank, National Association and PNC Bank, Delaware. Members FDIC.
6
Payment processing services are subject to credit approval and provided by PNC Merchant Services Company. See PNC Bank’s Business Checking
24 Accounts and Related Charges for further information. 25deposited to your PNC Bank Business checking
account.3 Call 888-562-2300 today and ask for a
PINACLE® Web
When your business has grown enough to need PERSONAL
complimentary analysis of your current processing
statement to validate whether you are receiving
sophisticated Treasury Management Services,
PINACLE Web provides our most sophisticated
FINANCE
the best rates for your business. cash management tools. All the features of Personal Banking*
PINACLE Express are included, plus a selection of It’s what you need to run your life right now. And
Free Online Bill Pay6 online cash management services from PNC cover what’s going to happen later.
Use your PC to pay business bills and schedule Treasury Management. • Checking • Savings
future or recurring payments. Spend less time
• Money Market Accounts and CDs
writing checks, reordering checks and buying Specialty Checking*
• Mortgages and Home Equity Loans8
stamps. Take advantage of vendors who offer elec- A selection of accounts for very specific industries
• Education and Personal Loans
tronic delivery of invoices. Save time by download- and situations.
• Credit Cards • Online Banking
ing invoices and their payment history into popular
business accounting programs. Best of all, it’s free. Non-Profit Checking
Investments**
PNC supports the efforts of non-profit organiza-
This is the dream part. Where you see your kids you can access your funds online or by writing a
Treasury Management Services tions with an account designed exclusively for
dressed in graduation gowns. A second home check, or with optional overdraft protection for
PNC Bank offers an extensive array of Treasury them—featuring no minimum balance require-
on a rocky coast. Teeing off on the first fairway of your PNC Bank Business Checking Account.
Management Services to help you manage your ment and no monthly maintenance fee.
your retirement.
company’s cash flow and financial position, Business Equity Line of Credit
streamline business operations, gain better
Analysis Business Checking With Interest • IRAs and Retirement Plans Provide some capital for your business by using
A qualifying business, non-profit, government • Education Savings Plans
control and accelerate your collection processes. the equity in your home or company building.
agency or sole proprietor can open the account. • Brokerage Services
Talk to us about electronic tax payment lockbox Available in amounts from $10,000 to $1,000,000.
This account has the features of Analysis • Mutual Funds • Annuities
services, ACH, Wire Transfer, Zero Balance Offers variable interest rate based on Prime Rate10
Business Checking plus earns interest on the • Tax-Advantaged Investments
Account, Money Room Services and more. and a 10-year principal repayment. Easy online
entire account balance. An Earnings Credit does
access or by writing a check.
not apply to this account.
Online Information & Reporting
Free Online Banking5 IOLTA (Interest On Lawyers’ Trust Accounts) FINANCING Secured Line of Credit
Use your company’s assets to free up cash.
Specifically designed to manage funds for multi-
Online Banking gives you free 24-hour access to At PNC, we’re always looking for ways to help our Because the line of credit is backed by the value of
your PNC Bank accounts, for a complete picture ple clients. Interest earned on an IOLTA, less any
clients meet the challenges of running their your business assets, inventory and receivables, it
of your business finances. View your current day permitted service fees, is forwarded to the state
businesses. When it comes to credit, that means offers lower interest rates than unsecured
ledger and available balances, daily deposit IOLTA board. No minimum balance or monthly
providing flexible interest rates, convenient repay- options. Available in amounts from $100,000 to
account activity and transaction history up to maintenance fee.
ment terms and credit availability. We help you $2,000,000, and interest-only payments deducted
90 days. See the status of your loan balances and Client Escrow Management Account choose the right loan from a wide range of loan automatically from your PNC Bank business
verify payments. View images of cleared checks Managing and tracking client escrow accounts products, so we can match interest rate, term and checking account.
and deposit tickets up to 180 days. Transfer funds made easy. This account has one master account other features for your particular situation and
between your accounts,7 including draws on select that can be linked to any number of individual needs. Our lending philosophy is what truly sets Growing Your Business
lines of credit. Place stop-payment orders and us apart—our goal is to ultimately say “yes” as Solutions for financing business expansion, the
client sub-accounts. Option to earn interest on
order copies of checks, deposits or statements. often as possible.8 purchase of a business, equipment purchases or
client accounts. Account provides one detailed
other major business expenses.
monthly statement.
PINACLE® Express Managing Cash Flow
For growing businesses that need to expand their A line of credit can help you manage the peaks and Choice CreditSM for Business
cash management, PINACLE Express provides valleys of your cash flow. Installment Loan
Product Guide
Choose a fixed or variable term loan based on
Product Guide
an affordable and easy-to-use way to conduct
your company’s banking online. With a single Choice CreditSM for Business Line of Credit Prime Rate10 and a repayment schedule that
sign-on, you have one-stop, 24-hour access to An unsecured line of credit that puts from $5,000 best fits your situation. Payments are deducted
critical information and a variety of services that up to $100,000 at your fingertips.9 Applying is easy automatically from your PNC Bank Business
help you monitor and control complex cash and quick, with a simple application and a decision, Checking Account. Available in amounts from
management activities. in most cases, in one business day or less. Plus, $2,500 to $100,000.
2
All loans subject to credit approval and require automatic payment ices is subject to credit approval and provided by PNC Merchant 5
There are fees for certain optional PNC Online Banking Services. See 7
Federal regulations prohibit you from making more than a total of
deduction from a PNC Bank business checking account. Origination Services Company. Please speak with your representative for further our “Account Information – Business Checking Accounts and Related 6 transfers each month to other accounts from a savings or money
and/or annual fees may apply. details. PINACLE® is a registered trademark of The PNC Financial Services Charges” brochure for further information. Offers, products and pric- market account.
Group, Inc. ing subject to change.
3
Next day funding valid only when processing Visa and Mastercard 6
Payment processing services are subject to credit approval and provided
transactions is provided by PNC Merchant Services and funds are 4
Credits to the accounts are Monday - Friday after midnight. See the
by PNC Merchant Services Company. See PNC Bank’s Business
deposited into a PNC Bank Business Checking account. Merchant serv- applicable “Funds Availability Policy” to determine when the funds
Checking Accounts and Related Charges for further information.
will be made available. Remote deposit is subject to Bank approval.
26 27Business Equity Term Loan SBA Loans and Other Government Business
Use the equity in your home or company building Loan Programs
or both to get the cash you need. Payments are The U.S. Small Business Administration (SBA)
deducted automatically from your PNC Bank offers a number of loan programs, some of which
business checking account. Available in amounts are targeted to specific types of businesses,
from $10,000 to $1,000,000 and for a repayment owners or opportunities. PNC Bank can help you
period of up to 20 years.11 choose the right program with the right features
to meet your borrowing needs. Ask your PNC
Business Secured Term Loan Business Banker about SBA loans and other gov-
Use assets like accounts receivables and inventory ernment business loan programs today.
to secure funding for equipment, machinery or
other major expenses. Competitive fixed interest Conducting Everyday Business
Purchasing Card
A streamlined process for purchasing a variety VA LU E A D D E D
rates and a variety of repayment options are
offered. Available in amounts from $10,000 to
Manage routine expenses better. of business goods and services. Reduces costs
and paperwork associated with purchase orders
SERVICES
$2,000,000 and a term up to seven years. PNC Platinum Business Rewards and checks. Provides flexible spending limits, Paychex®
MasterCard® merchant controls and fraud prevention. PNC provides access to Paychex®, a leading
Other Business Financing Needs Keep business and personal expenses separate. provider of payroll processing services.13 Paychex
PNC also offers business credit solutions for Our Platinum Business Rewards MasterCard® is Employee Benefits streamlines the administration of employee
specific borrowing needs—such as Commercial a great way to manage and control travel, enter- PNC provides access to 401(k)s,† Simple IRAs, compensation programs and provides all the
Mortgages and Business Vehicle Financing. tainment and other business expenses. Track group insurance12** and our own WorkPlace documentation necessary to keep your payroll
Leasing options are available and offer your expenses by category or employee. Banking program—a program providing personal system in compliance with state and
company the opportunity to procure equipment at banking services and educational seminars to federal requirements.
a fixed rate for a fixed amount of time.*** your employees at no cost to your company.
Talk to a PNC Business Banker about 401(k) plans
Visa Extras
Turn everyday business purchases into
today and discover a competitive edge in attracting
redeemable points for the rewards you want or
and retaining employees.
need—just by signing your name. You can also
Business Insurance earn points for online or electronic purchases.14
Business Credit Solutions 8
Protect your business. PNC provides access from
The choice is yours every time you use your
PNC Bank Visa Business Check Card for a quali-
PNC Loan simple, low-cost insurance packages for small
Need Solution Amounts Features Benefits fying purchase when you enroll in Visa Extras.14
businesses to more comprehensive, customized
Short-term working capital, Choice $5,000 to Unsecured Line of Credit with check, Simple application and decision,
insurance solutions for businesses with more
equipment purchases and CreditSM for $100,000 telephone and online access and a in most cases, in one business
complex needs.12 Talk to your PNC Business Banker.
To learn more about how a
general business needs Business variable interest rate based on the day or less. Optional overdraft
Prime Rate.10 Or Term Loan with either protection for your PNC relationship with PNC Bank makes
a fixed interest rate or variable interest Business Checking Account.
rate based on the Prime Rate.10 banking easier, stop by any branch, call
8
All loans and lines of credit subject to credit approval and if applica-
Working capital, equipment Business $10,000 to Line of Credit secured by primary Equity in real estate you own – ble, require automatic deduction from a PNC Bank checking account. 1.877.BUS.BNKG or visit www.pnc.com
purchases, expansion and Equity Loan $1,000,000 residence and/or owner-occupied your home, your company’s Origination and/or other fees may apply. All first mortgage products
building improvements commercial property, with check, building or both, can be used are offered and provided by PNC Mortgage, LLC. PNC Mortgage, LLC
telephone and online access and a to secure a longer repayment is licensed in New Jersey as a Department of Banking Mortgage 14
A “qualifying purchase” is any signature-based purchase, phone or mail
variable interest rate. Or Term Loan term and lower interest rate Banker. PNC Mortgage, LLC may not be available in your area. Credit order purchase, or automatic bill payment made with an enrolled VISA
subject to approval. card, which is processed or submitted through the VISA USA Transaction
secured by primary residence and/or compared to other loan options. 9
$175 annual fee applies to Choice CreditSM for Business Line of Credit. Processing System.
owner-occupied commercial property
with a fixed interest rate.
10
“Prime Rate” means the highest prime rate published in the “Money
15
See our Consumer Schedule of Service Charges and Fees for further
information. Bank deposit products provided by PNC Bank, National
Product Guide
Rates” section of The Wall Street Journal for the last day of the preceding calen-
Product Guide
Larger working capital needs, Secured Loan Line of Credit Line of Credit secured by business Leverage the value of your dar month. Association and PNC Bank, Delaware. Members FDIC.
seasonal inventory purchases, $100,000 to assets with check and telephone receivables, inventory and 11
20-year term available with residential equity only. PINACLE® is a registered trademark of the PNC Financial Services
equipment and machinery $1,000,000 access and variable interest rate, equipment to obtain larger loan †
Securities and brokerage services are provided by PNC Investments LLC. Group, Inc.
purchases based on the Prime Rate.10 Or Term amounts. Optional overdraft Member NASD and SIPC. A licensed affiliate of PNC Bank, N. A. may * Bank deposit products provided by PNC Bank, National Association and
Term Loan Loan secured by business assets with protection for your PNC Bank receive compensation if you purchase.
$10,000 to a fixed interest rate. Business Checking Account. PNC Bank, Delaware. Members FDIC. Loans subject to credit approval.
12
Insurance products and advice are provided by PNC Insurance Services,
$2,000,000 LLC Inc., a licensed insurance agency affiliate of PNC Bank, N.A. or by ** Important Investor Information: Securities
licensed insurance agencies that are not affiliated with PNC Bank, N.A. and brokerage services are provided by PNC
Purchase or finance Commercial $50,000 to Loan secured by commercial property. Streamlined process to buy Investments LLC, member NASD and SIPC.
PNC Insurance Services Inc. will receive compensation if you choose to
commercial property Mortgage $2,000,000 Choice of fixed or variable interest rate. or refinance your company’s purchase coverage through this program. A decision to purchase insur- Annuities and other insurance products are
building. ance will not affect the cost or availability of other products or services offered by PNC Insurance Services, LLC, a
from PNC Bank, N.A. The coverage can be purchased from any source of licensed insurance agency.
Purchase business vehicle Business $10,000 to Loan secured by vehicle, with a fixed 100% financing of new cars
your choice. *** Leasing services provided by PNC Equipment Finance, LLC.
Vehicle Loan $250,000 interest rate. and trucks, 80% financing of
used vehicles.
13
Payroll services are provided by Paychex, Inc. PNC Bank receives compen-
sation from Paychex in connection with payroll services provided to PNC TT: 1.800.531.1648
Banks’ customers.
28 29“Highest in Customer
Satisfaction with Small
Business Banking” †
We’re honored and humbled
with this recognition from our
small business customers.
To us you’re more than
customers; you’re a source
of inspiration. Thank you.
† PNC Bank received the highest numerical score in the proprietary J.D. Power and Associates 2006 Small Business Banking Satisfaction StudySM. Study
based on 4,996 total responses, measuring 13 financial institutions and measures opinions of small business customers with annual revenues from
$100,000 to $10 million. Proprietary study results are based on experiences and perceptions of customers surveyed in July – September 2006. Your
experiences may vary. Visit jdpower.com
BUSINESS BANKING
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