So what are the benefits of banking online via a smartphone?

As our technologies constantly evolve, what is new today becomes old news tomorrow.  This is why it is important for us at Texas Bank and Trust to continually work to develop more efficient ways for our customers to conduct their banking – more specifically, banking online. Online banking is a great way to view your transactions, transfer funds between accounts, issue bill payments, receive eSTATEMENTS, and so much more! Compact some of these services and throw them into an app, and you have TBTgomobile! 

TBTgomobile allows customers to bank on the go and access their funds anytime, anywhere. As technologies rapidly change, we believe mobile banking is going to continue to be a significant focus for the banking industry, as a whole. To meet these demands, we are proactively working to develop and grow our mobile banking product line and deliver a user experience that is easy to use, but has all the features you would want in a mobile banking app.

A few months ago, I posted a blog explaining what Remote Deposit Capture is at Texas Bank and Trust. In that post, I entertained the idea of Mobile Deposit. 

As you may recall, I mentioned it was convenience in the palm of your hand…
I am writing today to let you know that mobile deposit is now SMARTDeposit at Texas Bank and Trust! In my last post, I stated that statistics show that using smartphones to deposit checks would soon be mainstream. So, the big question still remains, will you use it?

SMARTDeposit is available through your TBTgomobile app for your iPhone, iPad, Android phone or Android tablet. SMARTDeposit allows you to securely capture the front and back image of a check and conveniently deposit it from your smartphone or other mobile device. Once captured, check images will be saved for a period of FIVE days within your TBTgomobile app. It is advised that customers safely and securely store captured checks for a minimum of 14 days, and then shred them.

With our lives becoming busier and our finances growing ever more important in today’s economy, SMARTDeposit just makes sense and quite simply, is a convenient way to deposit your checks.
Just look at the benefits of SMARTDeposit:

·         Avoid the wait at a teller line when time is of the essence.

·         Safe and Secure way to deposit your check(s) on the go.

·         Anytime, anywhere access to your account information and to deposit your check(s).

·         Electronic deposit receipt sent to you via email.

We know there’s power in controlling your finances on your time and your terms. Our goal is to continue to develop more efficient ways to do just that…from the palm of your hand!

Be on the lookout for my next post later this year to find out the next exciting product we will be adding to TBTgomobile!

By: Chris Davis 
       E-Banking Manager 

Texas Bank and Trust's Homepage
Texas Bank and Trust's YouTube Channel 

52 Week Savings Challenge: Week 10

Dun dun dun…it’s happened. I have hit the double digits and life will start to get pretty interesting from this point forward.  I have this feeling that I want the weeks to go by quickly so I can be done with this challenge, but at the same time, I want them to go by slow because Mondays like to laugh in my face and take my money! I am in a slight state of depression every Monday morning as I slowly walk my way towards the teller counter like a zombie to withdraw my amount for the week. However, as I head back to my office with the green pieces of my soul in hand, I remind myself to suck it up. It will all be worth it a year from now, or at least it better be.

I am actually pretty proud of myself. I have not been eating out and instead have been buying groceries that will last me for a couple weeks. Right now my diet consists of cereal, PB&Js, and grilled cheese. Let me tell you, I make the best gourmet bowl of cereal you have ever tasted. It takes mad skills and a little natural talent to pour the milk in just right. I don’t mean to brag; but, I have been making cereal since the first grade. Grilled cheese is hard, it burns.

I have also demonstrated amazing self-control. I have had an invite to a Ranger’s game, dinner with friends, and the little red Target bull’s eye symbol has become a frequent character in my dreams tempting me to walk through the doors of a company that probably could have made me part owner of a long time ago. And just last week, a co-worker was making a Starbucks run and asked if I would like anything. Did I want that Grande Chi Tea Latte and be able to taste that little happiness in a white paper cup? Well, duh…of course I did, but I stood my ground and sadly said, “No, I’m good.” When she returned with all the drinks and I watched the girls swallow the liquid heaven with this look of complete satisfaction on their face, I stood there with my FREE water from the office water cooler and was proud for not giving in and spending the $4 for my tea. You may think that is just a minimal amount and I could have bought the tea, but I think ahead and know that the $4 will go towards my $11 for next week.

In closing, I wanted to say thank you to all who signed the pledge and have committed to take the Challenge with me. It will be a long year but I know we all can make it to the end! Please let me know how you are doing in your challenge and feel free to offer any words of advice to myself and others out there participating. I love hearing from you and will be sending words of encouragement your way soon. As Joe Dirt would say, let’s “Keep on keepin’ on!”

Total Savings:  $55.00

By: Tawny Ormes
      Marketing Projects Coordinator
      and TBT Webmaster

Texas Bank and Trust's Homepage
Texas Bank and Trust's YouTube Channel 

How to Finance a Small Business

As businesses are created and grown, they typically need to obtain credit to operate if they sell their product or service on terms, or until they begin to retain sufficient earnings.  I’ve been fortunate enough over the past 22 years to assist numerous small businesses in many different industries with their credit needs and can share some observations that might be helpful to you if you own, or are considering starting, a small business.

Small businesses get credit from one or more of three basic sources: Lenders, Vendors, and Owners. That’s a very simplified answer to a complex question, but I like it because it breaks business credit down to its simplest form and it rhymes. Let’s examine each one in a little more detail:

Lenders:

This category is exactly what it says. Businesses can borrow money from traditional lenders such as banks, credit unions, savings and loans/savings banks, and yes, even credit cards. As much as lenders try to differentiate themselves, borrowing money from any of these sources generally comes down to the same basic qualifications (old timers like me refer to these as the “C’s” of credit):

1.       Capacity/Cash Flow – Can the business afford to pay back its loans and still provide a reasonable salary to the owner/return to the shareholder with some margin/cushion?

2.       Character – Does the company/owner/principal have good character?

3.       Collateral – Is there sufficient collateral to secure the loan, or does the borrower qualify for the loan on an unsecured basis?

4.       Credit – Does the company/owner/principal have good credit, e.g. have they performed as agreed upon with previous loans?

Another source of credit that has become more prevalent is “factoring”. Factoring is a process where you sell your accounts receivable to a factoring company, they pay you a discounted percentage of the total up front, and the factoring company collects the receivable from the customer over time. The discounts are typically high, thus making this type of financing very expensive, especially when you convert the discount percentage to an annual percentage rate (APR). For a brand new business with very good receivables, this may be their only financing option other than an owner injection.  

Vendors:

Some people refer to this type of financing as “trade payable” financing. You essentially “borrow” money from your vendors/suppliers who offer payment terms by delaying payment, which in turn creates cash flow for your business. Utilizing this type of credit is typically on a short-term or gap basis. In the past, the old rule was “2/10 net 30” which meant that if you pay an invoice within 10 days the vendor offers a two percent price discount, but the entire balance is due within 30 days.   These days, most companies, especially larger ones, have discovered the cash flow that is created by delaying payments, so few take advantage of the discount offered.  In all likelihood, this has reduced the number of vendors offering discounts. 

Owners:

A business can receive capital (cash) injections from an owner to provide the credit it needs.  If the business is a partnership or corporation, this entails giving a portion of the business ownership to the person/persons making the injection, and providing them with a rate of return that is greater than what a traditional lender will require. That is because there is greater perceived risk for the investor. Borrowing with this method is done through the issuance of equity (stock) or debt (bonds). You may or may not be willing to give up a portion of your business to provide capital with this method.

Which brings us to the final point; how much capital does a business need? That’s a very complex equation, but here’s a quick formula that can “get you in the ballpark:”

1.       Annual credit sales of the business / 365 (days)  = average daily credit sales

2.       Multiply the average daily sales X the average collection period of your accounts receivable in days.

3.       This is about how much capital a business needs to support that level of sales.

Example: XYZ Corporation sells $1,000,000 worth of widgets per year. About 80% ($800,000) is sold on credit. Most of XYZ’s customers pay in 30 days, although a few pay early and a few pay late, but 30 is a reasonable average collection period. How much capital does XYZ need to support their credit sales?

1.       $800,000/365 days = $2,191.78 is their average daily credit sales

2.       $2,191.78 X 30 days =

3.       $65,753.42 is about how much capital XYZ needs to support $800,000 in credit sales.

You can also deduct that as XYZ’s sales increase, so will the capital need unless the company has been in business long enough to retain earnings (profit) to support sales with cash.

I hope you’ve found this information useful, and if Texas Bank and Trust can ever be of service to you or your business, we would certainly appreciate the opportunity. 

Stay tuned, my next blog post will be “How to Start a Small Business.”  Wishing you continued success,

James Sheridan

Senior Vice President/Commercial Lender

Tyler Grande Branch

Texas Bank and Trust Homepage

Texas Bank and Trust YouTube Page

This information is provided with the understanding that neither Texas Bank and Trust Company nor James Sheridan is engaged in rendering specific legal or accounting services. If specific expert assistance in these areas is required, please contact a competent professional offering those services. 

52 Week Savings Challenge: Week 6

Well, I have made it to Week Six! Honestly, I have not had to make any major changes to my daily lifestyle…yet. Since I am still in the single digit weeks I know that will change, so I am trying to plan ahead.

I have decided to give up and not purchase anything that is not essential for survival, like food. I am just kidding, but I will not be eating out anymore. I will only be eating at home and will prepare meals that I can eat on for a few days, like chicken spaghetti and crockpot meals. It will be good when it starts to get colder. I am not a big fan of leftovers, but I guess I will have to force myself to like them. We will see how long that lasts.

I have also been looking into cancelling my DIRECTV. I can actually hear you all gasping in horror of the thought of not being able to watch your favorite shows. Truth be told, I do not watch a lot of TV and do not have any particular shows that I have to watch. I have the most basic plan they offer, with no HD or DVR (I hear another gasp), and it still costs me $75.00 a month. To me, that is ridiculous. I could get a Redbox every night of the month if I wanted, and it would only cost me $30.00. That’s $45.00 I just saved.

Like I said, I am still considering it since I will also be giving up going out with my friends, mini weekend vacations, and any unnecessary driving. With that, I will be stuck at home a lot with my Schnauzer Jack and may need re-runs of “Friends” and “The Big Bang Theory” to keep us company.

Since my last blog post, I have heard from many of you that you are also taking the challenge. Kudos to you! I am so excited and pleased to have so much feedback from this and to know that I have inspired so many to join me. I love hearing from different people and what they are going through and how they are making changes in order to save. 

This gave me an idea. I want to make this an “official challenge.” I have a link below to a pledge. This is for those of you who are taking the challenge already or plan to start it by September 3. If you sign the pledge and send it the Public Relations department here at Texas Bank and Trust, you will become officially part of the 52 Week Savings Challenge. At the end of the 52 weeks, if you have signed and sent in your pledge and can show me that you have saved the grand total of $1,378, you will be part of an elite savings group. You will be invited to attend a reception and receive your 52 Week Savings Challenge t-shirt next summer! You will get to show everyone that you made it all the way through and are $1,378 richer and are a savings champion!

I know it will be tough, and I am not looking forward to the double digit weeks to come, but I know it will be all worth it in the end. And I really want to earn that t-shirt! So if you are, or want to be, officially in the Challenge, please send in your signed pledge. You can scan and email it, or mail it to the address on the form.

Please read the pledge carefully, and I hope to see many of these come in by September 3.  Until my next post, happy savings!

Total Savings:  $21.00

CLICK HERE TO SIGN THE PLEDGE

By: Tawny Ormes
      Marketing Projects Coordinator
      and TBT Webmaster

Texas Bank and Trust's Homepage
Texas Bank and Trust's YouTube Channel 

Debit Card Tips for Travel and Large Purchases

Traveling this summer? With debit card counterfeit and fraud on the rise, it is important that you notify the bank when you are preparing to travel or planning on making larger purchases. Calling the Bank Card department ahead of time can help prevent unnecessary fraud blocks that may disrupt your transaction usage while you are on the go. Consider these other tips as you prepare for your travels through the rest of the summer.

• Notify the Bank Card department when you will be traveling – It is important that we make travel notes and keep our fraud center aware.  Noting where you will be traveling and the length of time you will be gone are helpful to know and can prevent fraud blocks.

• Providing your most up-to-date cell numbers are a must.  Keep your account updated with good phone numbers.  It is important that we are able to reach you quickly in the event we need to verify potential fraud/counterfeit transactions.

• Texas Bank and Trust sets daily spending limits on your VISA checkcard to minimize potential counterfeit/ fraud losses.  Our standard retail daily limit is $1,000 and $300 at the ATM. We can certainly raise these limits with just a phone call to accommodate larger spending needs.  You can reach the Bank Card department at 903-252-3179 Monday – Friday 8:30 – 5:00 and Saturday 8:30 – Noon.

• While traveling out of state, some merchant transactions will require your PIN number be used during this peak fraud season. This information is currently disclosed on our News & Alerts messaging on our website and was broadcast via statement message, Net Teller Alert or letter last month. 

• Remember your VISA debit card is a vital resource to accessing your account funds.   Keep it safe and never store your PIN with the card.    

Whether you are across the world or just across town, traveling has never been easier with our comprehensive Bank on Demand services. Let up help you travel with peace of mind. Call us today if you have any additional questions on protecting your checkcard this summer.

By: Crystal Hardy 

       Vice President and
      Credit Card Manager

Texas Bank and Trust Homepage
Texas Bank and Trust's YouTube Page

52 Week Savings Challenge: Week 1

A significant part of my job here at Texas Bank and Trust is maintaining our vast 300-plus page website. And on the homepage of our website you will find our TBT blog, “How We See It.” As the bank’s webmaster, one of my responsibilities is to make sure we have a new fresh blog about every two weeks, and believe me this is not an easy task.

 Our bloggers are trusted advisors of the bank who are experts in their particular division. They are very busy individuals with their own day to day schedules and do not always have time to sit down and blog for me. I completely understand, but this predicament leaves me blogless and wondering “How in the world am I going to get a new blog to post by Friday?” By the end of the week a blogger graciously sends me a blog and it all works out.

In a meeting with my boss one Friday, I brought up the “need for blogs” topic and asked her for suggestions on how to obtain more blogs and possibly build up a reserve so I am not scrambling for a new post every two weeks. She turns to me and asks, “How about you write for the blog?” I’ll admit, I was a little surprised by her request. I mean, I am not in the loan department, mortgage, credit, new accounts or trust. I know the basics of most of these areas, but by no means am I an expert and able to write a blog. I think she noticed the surprised look on my face, as I have a problem with controlling my facial expressions.  I did not want her to think I was not cooperative, so I quickly responded, “Sure, I don’t mind blogging.” But what would I say? Maintaining a website is not really financial blog material.

She then mentioned a project a co-worker and I had wanted to start working on - a financial literacy program for college students. She suggested that I use some of that information for possible blog material. Well, when I was in college all I was concerned with was my budget and how to make every single cent last and budget wisely. I’m talking about a Ramen Noodles-every-night-for-dinner kind of budget.

Then I remembered something I saw on Pinterest (one of my favorite and free things to do) a while back. I told my boss about this “52 Week Money Challenge” I saw where you put back money every week for a whole year. The amount of money you put back depends on the week you are on. For example week 1 = $1, week 6 = $6, week 38 = $38…and so on. By the end of week 52 you will have saved $1,378.00! I could blog about this challenge and encourage people to participate and save money! Great idea right! Well I thought it was at least.

Do you know those people that think outside the box? Well my boss is one of those people that have the box, package it up, ships it across the planet, steps out of the box and thinks there! After I mentioned my idea to her she sat quietly for a few seconds and then looks at me with all seriousness and tells me, “You do the challenge!” At first I thought I heard her wrong. You mean ME? I have a hard time saving as it is.

“I’m sorry, what?” was all that popped out of my mouth.

“Yes, you do the challenge and that will give you your topic to write about!” she said without an ounce of doubt in her voice!

So that is how it started! That is why you are reading this right now and hopefully will continue to read my posts throughout the next year. I will go through this savings challenge for a whole year (52 weeks) and will blog about my experiences and sacrifices I have to make. I will post an update to how I am doing at the first of every month and hopefully someone, somewhere out there in the big wide world, is also doing the challenge and will give me some feedback and encouragement to stay strong!

So follow along my year-long journey! I plan on taking an awesome trip with my savings after my year of complete sacrifice. If you are brave enough take the journey with me, let me know what week you are on and what you are giving up. It always helps when you don’t have to go through an experience like this alone.

Until my next post…which I will be on week 5 when I return. Wish me luck! I have put back my Mr. Washington for this week which was not too hard!

Week 1: Total Savings $1

By: Tawny Ormes
     Marketing Projects Coordinator 
     and TBT Webmaster

Texas Bank and Trust Homepage

Texas Bank and Trust's YouTube Page