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Treasury Services

Treasury or management services encompass various financial products and solutions designed to help businesses efficiently manage their cash flow, liquidity, and economic risks. These services are crucial for organizations of all sizes, from small businesses to large multinational corporations, as they provide the tools to optimize cash management and maximize returns on excess funds. First West Credit Union typically offers treasury services, and they play a fundamental role in supporting businesses' economic health and stability.


Core Functions of Treasury Services:


  • Cash Management: involves managing a business's day-to-day cash flow. It includes services like account reconciliation, cash positioning, and liquidity management.
  • Payments and Collections: Treasury services facilitate efficient and secure processing of payments and collections, both domestically and internationally. This includes wire transfers, ACH payments, check processing, and lockbox services.
  • Liquidity Management: This involves optimizing cash resources and ensuring a business has enough liquidity to meet its financial obligations. It includes services like short-term investments and borrowing facilities.
  • Risk Management: Treasury services help businesses identify and mitigate various financial risks, such as foreign exchange risk, interest rate risk, and counterparty risk. This includes services like hedging solutions and trade finance.

Critical Treasury Services Offered:


1. Cash Management Services:
  • Account Services: Opening and maintaining bank accounts, providing online banking access, and offering account analysis tools.
  • Payment Services: Processing various types of payments, including electronic payments, checks, and international payments.
  • Collection Services: Collecting customer payments through various channels, such as lockbox services, remote deposit capture, and electronic bill presentation and payment.
  • Liquidity Management: Investing surplus cash in short-term instruments, managing cash concentration, and providing overdraft facilities.

2. Trade Finance Services:
  • Letters of Credit: Providing guarantees to facilitate international trade transactions.
  • Documentary Collections: Handling the exchange of documents and payments between exporters and importers.
  • Supply Chain Finance: Providing financing solutions to suppliers and buyers in a supply chain.
  • Export/Import Financing: Offering loans and credit facilities to exporters and importers.

3. Foreign Exchange Services:
  • Spot Transactions: Buying and selling currencies at current market rates.
  • Forward Contracts: Locking in exchange rates for future transactions.
  • Swaps: Exchange currencies at a predetermined rate and then reverse the transaction later.
  • Options: Providing the right, but not the obligation, to buy or sell a currency at a specific price by a certain date.

4. Investment Services:
  • Money Market Funds: Investing in short-term debt instruments.
  • Fixed Income Securities: Investing in bonds and other debt instruments.
  • Fixed Income Securities: Investing in bonds and other debt instruments.

5. Risk Management Services:
  • Interest Rate Hedging: Protecting against adverse movements in interest rates.
  • Foreign Exchange Hedging: Protecting against adverse movements in exchange rates.
  • Commodity Hedging: Protecting against adverse movements in commodity prices.


Benefits of Treasury Services:

  • Improved cash flow visibility and control
  • Enhanced operational efficiency and reduced costs
  • Mitigated financial risks
  • Strengthened financial position
  • Improved access to financing
  • Enhanced customer and supplier relationships


Who Uses Treasury Services?

Treasury services are used by a wide range of organizations, including:

  • Corporations
  • Government entities
  • Financial institutions
  • Non-profit organizations

Choosing a Treasury Services Provider:

When selecting a treasury services provider, organizations should consider factors such as:

  • Range of services offered
  • Technology capabilities
  • Global reach
  • Customer service
  • Pricing
  • Reputation and financial strength