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Why is partnering with a locally owned bank beneficial to your business? Your company is typically one of your most valuable assets, and having a close relationship with your bank is critical when it comes to making important financial decisions and driving growth. [Read more]

While it’s a given that a career as an attorney demands expertise in the practice of law, the business side of the legal industry also requires a high level of savviness and should not be overlooked or viewed as secondary. The stakes are high when large sums of money are flowing in and out of a firm, with client fees and settlements coming in, and legal team payroll, case expenses, and firm overhead payments going out. It’s crucial for legal firms to have a trusted banking partner – one that knows the legal industry and its nuances and regulations – to guide and manage cash flow, particularly if they are a litigation law firm working with large settlements. 

Benefits of an Attorney-Bank Relationship

Law firms should establish a relationship with a banking partner they can trust – and it’s crucial to ensure the bank has a track record of successfully working within the legal industry. There are many advantages to a secure partnership between a law firm and bank, and following are five key areas that can benefit attorneys: 

Establishing a new practice: Whether an attorney is right out of law school or is an experienced lawyer branching out on their own, launching a business requires capital. It’s expensive to get a business up and running and a banking partner can open deposit accounts for new firms and help with items like securing letters of credit for office leases. 

Financing case expenses: Financing court cases can be challenging, and the process requires the legal team to have working capital available up front to pay for expenses such as expert witnesses, background research, and creation of courtroom exhibits. Generally, the costs and expenses needed to get a case to a resolution is a fraction of the payout, but cases can take time to resolve and having the right banking partner can help a firm finance its expenses and manage cash flow.  A firm with an established banking partner has the advantage of the bank’s trust and is therefore more likely to be successful with securing a loan.  

Managing trust accounts: It’s imperative that legal firms have a trustworthy partner to manage its trust accounts so they can focus on litigating and let their bank handle the finances. A firm’s banking partner should have expertise and experience handling trusts for law firms and their clients and be sensitive to the unique needs of these accounts. There are a lot of nuances to consider, as money paid out can have strings attached, such as if a minor is to be the recipient, or if an estate is involved. These cases need to be handled carefully and expertly, and the right banking partner will be equipped to do so. 

Securing financing for onboarding new partners: For many law firms, bringing on new partners is a strategic path for growing the firm and for expanding revenue opportunities. But adding partners to the roster can be complex and expensive. Working with your bank to find financial solutions for onboarding new senior team members is a creative way to pursue the firm’s plans for growth while keeping the financial needs of your new partners in mind.

Setting up corporate credit cards: A firm may opt to work with their bank to set up a corporate credit card to finance up front expenses. A typical card has a credit line of $100,000 and offers several advantages. Firms that use a credit card, such as the Signature Bank Corporate Credit Card, rather than paper checks significantly lower their chances of fraud – they eliminate the risk of mailing paper checks to experts, witnesses, and vendors. They also can have zero-liability fraud protection for unauthorized purchases, significantly reduce time for payment, and save on administration and processing costs. Furthermore, an online dashboard can provide a quick snapshot of spending patterns and status of payments.   

Find a banking partner you can trust

All law firms, but particularly those on the litigation side, should establish a relationship with a bank that has a proven track record specializing in handling the financial aspects of the legal industry. Getting a new firm up and running, financing case expenses, and managing trust accounts are all ways a banking partner can help. Does your firm have a trusted banking partner?

Signature Bank is Chicago’s business bank, focused exclusively on serving the needs of privately-owned businesses and their owners. Learn more at www.signaturebank.bank or contact Nate Dinger 312-386-6904.

As a business owner you are faced with numerous decisions each day that impact your bottom line, your employees and your clients. Whether you are just starting out, or you have an established mid-sized business, one of the most important choices you will make is the selection of a commercial banking partner that will help your business grow and mature. As you evaluate your options, think about what you value in a banking relationship. Are you seeking a true partner who can help guide your financial path? Is location important? What kinds of banking services are a priority for your business?

Following are three criteria to consider when choosing a banking partner.

1. A Relationship You Can Trust: One of the most valuable assets a commercial banking partner can offer is trust. You want a partner who will be by your side as a confidential advisor, laser-focused on helping you succeed. A benefit of a mid-size bank versus a larger bank can be one-on-one service and quick, personal responses from a live person rather than an automated system or offshore call center.  It’s important to look for a banker who pays attention to the day-to-day transactions of your business and who is available to talk with you regularly – someone who will call you with ideas or if they see an issue. For some businesses, the bank’s location is a priority for easy in-person meetings or simply because the bank has a unique familiarity with the market. When was the last time you spoke directly with your banker?

2. Knowledge of Your Business and Industry: A banking partner should not only be a financial expert, but also should be an expert on your industry. To provide reliable guidance that will help you achieve your business goals, your banker should deeply understand your business’ nuances, regulations, and best practices. Certain industries particularly benefit from having a partner with industry expertise, including law firms, professional service firms, manufacturing companies, technology firms, and insurance agencies among others.  A banker who knows your business and industry can respond quickly to your loan requests and provide you certainty of execution so you can focus on the big picture. How well does your commercial banker know your business?

3. Offerings Catered to Your Business Needs: Every business has a unique set of needs, and your vetting process should include an evaluation of how a bank’s products and services line up with your needs. Can services be customized or are they one size fits all? Perhaps your accounting department would find efficiencies by using file formats that work seamlessly with your bank – so you can reduce the times you need to create reports or research transaction items. Or maybe you need flexible deposit limits and lending thresholds. In today’s environment it’s also important to understand how potential banking partners help you prepare for and manage fraud risks, because if attempted fraud has not yet impacted your business, it likely will at some point. Is your business bank able to offer a breadth of services that fit your needs? Does it provide the best technology combined with personal service?

Whether you are choosing your first banking partner or contemplating a change, make a list of priorities you can measure against in your search. Take time to meet with several potential partners; ask hard questions; and look for someone you can trust with your assets who knows your industry and who offers the customized, hands-on service you deserve.

Looking for a banking partner? Signature Bank highly values customer relationships and can help you reach your business and personal financial goals. Signature Bank is Chicagoland’s business bank, focused exclusively on serving the needs of privately-owned businesses and their owners. Learn more at www.signaturebank.bank or contact Pete Olsen at polsen@signaturebank.bank or 773-467-5630.

Check fraud continues to pose a significant threat to businesses of all sizes, and bad actors are getting more creative and aggressive. From check washing to email scams, these criminals have numerous tools to alter checks and it is imperative to have strategies in place to provide maximum protection. [Read more]

By: Penny Foust, First Vice President, Signature Bank 

If your business has not yet been a victim of fraud, there is a high probability it will. According to the  2023 AFP Payments Fraud and Control Survey Report, 65% of organizations experienced payment fraud attacks/attempts in 2022. This holds true for all companies regardless of size or type, from large corporations with deep pockets to the smallest, least-prepared nonprofits. 

Companies that have not experienced fraud often think it won’t happen to them; unfortunately, it is no longer “if” but “when.”  It can be daunting to consider the fallout, and overwhelming to think about establishing fraud preventative measures, but creating a business fraud prevention plan is necessary to reduce risk. 

Business owners may assume they have the same fraud protection afforded to consumers by the Federal Reserve Board, allowing 60 days to report unauthorized electronic payments. The truth is, Regulation E, which implements the Electronic Fund Transfer Act (EFTA), is only a consumer protection law that does not provide businesses with the same safety net. Businesses need to notify their banks immediately to dispute unauthorized transactions, as after 24 hours the liability shifts from the bank to the business.   

Now more than ever, it is imperative companies proactively work with their financial institutions to combat savvy, ever-evolving fraudsters. When companies sign bank documents, there are agreements to follow certain security protocols and bank disclosures that outline best practices for fraud protection. Dual control, which creates two layers of approvals for transactions by two users on two different devices, is a prime example. Businesses must accept and implement banks’ security offerings and not waive the right or ability to establish crucial checks and balances. If a company waives these options, the liability falls on them, emphasizing the need to have a plan in place to minimize losses when fraud occurs. 

The following are tips to minimize risks associated with commercial fraud: 

Keep Checks Out of the Mail and Implement Positive Pay  

Checks are one of the most vulnerable payment methods businesses still use today. In fact, the 2023 AFP Payments Fraud and Control Survey Report revealed that 63% of companies surveyed say their organization experienced fraud through check use. Check fraud often begins with paper checks being stolen from the mail, like from a postal service mailbox or mail containing checks left out for postal worker pickup. 

One way to minimize check fraud is to go digital. Fraud-conscious companies can keep paper checks out of the mail by automating payments through a trusted banking provider. For example, Signature Bank offers Finrails AP, which is a fully integrated payments platform that automates business-to-business payments in a seamless and secure online dashboard. 

If a criminal intercepts a check, there are ways to fight fraud before it’s too late. Positive Pay is a standard, time-tested tool offered by banks to catch check fraud but it has been alarmingly underutilized by businesses. Positive pay matches the account number, check number and dollar amount of each check presented for payment against a list of checks previously authorized and issued by the company. Suspicious checks are reported to the customer for a pay/no pay decision before it becomes a loss. 

Companies also should be aware of endorsement fraud, which happens when a legitimate check is intercepted and endorsed by someone other than the intended recipient. Unfortunately, positive pay does not thwart this type of fraud because nothing on the front of the check has changed. Companies can catch endorsement fraud by daily or weekly spot checking the backs of checks. 

Implement Cyber Security  

Cyber fraud is a growing threat, largely due to customers sending personal information, such as drivers licenses, social security numbers and account numbers through unsecured channels. Customers should set up strong passwords and only send confidential information via secure links banks provide. Additionally, businesses should use multi-factor authentication, such as key fobs and security tokens, and set up dual controls. 

Educate and Engage Employees   

Businesses should educate and engage their employees about fraud prevention, which could include daily monitoring and creating a plan for when fraud occurs. It also is important to ensure employees who access company finances have particularly secure systems, not just when they are in banking portals, but with all systems and applications, including social media, that they access from their work computer. 

Fraud is an ongoing financial threat that all businesses must acknowledge and anticipate. When a business does experience fraud or an email breach it is critical to notify their bank immediately, as the bank could receive fraudulent emails that appear to be from the customer. Businesses should always report fraud to FTC.gov and, in cases of cyber fraud, the Internet Crime Complaint Center (ic3.gov). 

Signature Bank highly values customer relationships and can help your business with strategies to prevent and respond to fraud and cyberthreats. Signature Bank is Chicago’s business bank, focused on serving the needs of privately-owned businesses and their owners. Learn more at www.signaturebank.bank or contact Penny Foust at 773.499.7157 or pfoust@signaturebank.bank. 

Who is your banker? If you can answer that question with a name, a face, and better yet, contact information, then it’s very likely that you were one of the 61% of small businesses that recently received a Paycheck Protection Program (PPP) loan through the SBA. [Read more]

Signature Bank Co-founder Bryan Duncan offers insight into what you can do as a business owner to navigate your way through the COVID-19 crisis. [Read more]