Banking news and stories to help you maximize the financial success of your business Q2 2022
Watsonʼs Greenhouse & Nursery is
SOWING SUCCESS
IN THIS ISSUE a publication of
Tips to Manage Seasonal Demand Scams that Target Small Businesses Which Loan is Right for You? Impact Investing
“...it makes it so much easier to run your business when you know your bank is with you.”
Contents
John Stearns credit
Salvation Army NW
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– Maidee Watson, Watson's Greenhouse & Nursery
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Business Profile: Watson's Greenhouse & Nursery........................ 2 Heritage Direct: The Benefits of an Online Banking Admin......... 6 Getting Started with Impact Investing............................................. 9 Expand Your Business Model......................................................... 16 Which Loan is Right for You?........................................................... 18
Director of Marketing Shaun Carson
IN EVERY ISSUE Heritage Helps....................................... 6 Our community involvement is part of our company’s DNA and something we’re very proud of. In this section, we highlight the good we’re doing in our communities.
We want to hear from you! Email us at BankingBusiness@HeritageBankNW.com with your feedback and ideas about what you'd like to read about in future issues.
PNWonderland...................................... 8 Explore the unique sights and experiences of our Pacific Northwest.
Business Banking Mentor................... 10 These tips will help you manage seasonal demand.
Fraud Protection/Cybersecurity......... 14 Steps to protect your small business from scams.
My Heritage.......................................... 20 Meet our relationship managers and learn about their heritage.
Financial Dictionary..............................21 Empowering you to make smart business decisions by demystifying banking terminology.
Banking Business is a quarterly publication of Heritage Bank
Bank Recognition SEM Achievement Award We’re honored to receive the Exemplary Employee Engagement award from Alternative Energy Systems Consulting, Inc. for our Heritage Helps Ecochallenge and participation in the Strategic Energy Management Program at our Hillsboro branch. A big thanks to our peers for recognizing our efforts to engage employees and raise awareness about our environmental impacts.
Editor-In-Chief Whitney Gibson
Creative Director Erica Bolvin
Managing Editor Stephanie Neurer
Contributors Samantha Fosberg Lacey Potter John Stearns 3615 Pacific Avenue Tacoma, WA 98418 800.455.6126 HeritageBankNW.com © 2022 Heritage Bank, member FDIC, Equal Housing Lender. The information in this magazine is general education or marketing in nature and is not intended to be accounting, legal, tax, investment or financial advice. Although Heritage Bank believes this information to be accurate as of the date published, it cannot ensure that it will remain accurate. Statements of individuals are their own and do not necessarily reflect the position or ideas of Heritage Bank. Contact us at 800.455.6126 or visit HeritageBankNW.com to make an appointment with one of our local experienced relationship managers to discuss your individual business banking needs.
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A MESSAGE FROM OUR CEO
Heritage Bank
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arth Month, observed in April, is a celebration of the planet, sustainability and how we can collectively make the world a better place. At Heritage, we are committed to environmental sustainability; it’s a pillar of our community investment focus. Not only do we support local organizations dedicated to making a positive impact, we also engage employees through outdoor volunteer activities, distribute reusable water bottles and shopping bags and participate in fun events like Ecochallenge.
For business customers, April can mean the ramping up of production or an increase in sales. This is the case for Maidee Watson, owner of Watson’s Greenhouse & Nursery. On page 2, Maidee shares some of her sustainability practices as well as how she manages the production of plants, sales and cash flow during slow seasons. We dive deeper into this topic on page 10 where we offer specific strategies businesses can consider when dealing with seasonal demand. Having a lull in business can be difficult, but it can also be an opportunity to pivot and adapt, allowing you to bring in more sales. "Expand Your Business Model" on page 16 covers a range of business models and explains how making a slight change in your business practices may bring in more revenue with less work. Thank you for reading Banking Business and for trusting us as your banking partner. Sincerely,
Jeff Deuel CEO
2021 ABA Foundation
COMMUNITY COMMITMENT
WINNER
Jeff Deuel is chief executive officer at Heritage Bank. He has more than 39 years of banking experience. Prior to joining Heritage, he worked at JPMorgan Chase, WaMu, Bank United, First Union, CoreStates and First Pennsylvania Bank. Jeff is a past chair of the Washington Bankers Association. He currently serves on the board of the Oregon Bankers Association and Pacific Coast Banking School. He is an avid cyclist and has climbed to the top of Mt. Rainier.
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Sowing success Watson’s Greenhouse & Nursery Heritage Bank plants support behind longtime South Sound business ARTICLE BY JOHN STEARNS IMAGES COURTESY OF WATSON'S GREENHOUSE & NURSERY
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Maidee Watson operates a seasonal business, Watson’s Greenhouse & Nursery, and sleeps a lot better at night in the first quarter each year knowing she has a Heritage Bank line of credit as a safety net if she needs it. Plant sales are slower from January to March and costs are increasing as inventory for spring starts to arrive, so no matter how well she’s planned and saved from peak spring and summer months, peace of mind from the credit line is helpful. Watson’s Greenhouse & Nursery switched its business to Heritage in 2017 partly due to that line of credit offer, said Watson, CEO and second-generation leader of the familyowned business, which has its anchor location in Puyallup and a one-year-old store in Federal Way. What started as a summer u-pick vegetable patch in 1974 became Watson’s year-round retail operation in 1984. “We had banked with (a previous bank) for years, but when I went to set up our line of credit, I was kind of shocked at the hoops they wanted us to jump through to do that after having this great banking record with them for years, and it was very frustrating to me,” Watson said. “That’s not what I expected.” So she called her banker, who earlier had left her previous bank for Heritage, and asked him what Heritage could offer. “We’re in this Puyallup community, we’ve been in business for 38 years, and I felt like talking to (Heritage) that it felt like a community bank, even though I know they’re bigger than that, but with the bandwidth to give us all the services that
Visit HeritageBankNW.com to read more of our business profiles, then make an appointment with a banker who knows your industry.
we needed without having to jump through a million hoops,” Watson said. “They made it very simple and straightforward.” That matters. “It’s super important when you’re in business to have a banker that believes in what you’re doing and they’re always there to support you,” Watson said, adding that if she has questions, her emails are answered immediately. “They’re always available.” When a business opportunity arose recently, she called the banker for his feedback. “Those kinds of things are awesome,” Watson said. “It’s great to be able to have somebody know your business really well, know where you’re at and be able to use them to kind of ask the hard questions even, and support you and say, ‘Wow, that sounds like a great opportunity, here’s how we can help with that.’”
More focus on home and plants
While Watson’s typically taps the credit line in January and February, then starts to pay it off in March as spring emerges, it hasn’t needed the line the past couple years. Like other home-supply businesses, more people staying home translated to more revenue. “Our industry, outside of the terrifying fear in the beginning of the pandemic, has done super well, and we’ve been really fortunate to do well during this time because people were stuck at home and that’s where people were spending their time, was on their home and yards,” Watson said. More interest in house and yard plants also attracted new customers interested in gardening. That additional business helped support the launch of the Federal Way store in March 2021 when Watson’s was approached to lease the site. It had already established an internal structure to accommodate future expansion so the site made sense. Watson’s will continue to evaluate other opportunities as they arise, she said. The company’s products are diverse, including trees, shrubs, nursery stock, fruit trees, perennials, annuals, hanging baskets, patio furniture, home decor, clothing, jewelry, pottery and lots of houseplants. “Houseplants are super-hot right now,” she said. continued, next page
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Because the Puyallup location is a destination on the west edge of town, it even includes a restaurant, Fran’s Garden Bistro, named after Watson’s mother, who passed away in 2017. Watson’s leases the café space to a third-party operator. “It’s been a really great addition for people to drive here and then they can take the time to have lunch and shop and look around,” Watson said.
Deep-rooted family business
Watson’s Greenhouse & Nursery officially started in 1984, but its roots go back a decade earlier when her parents, Fran and Dan Watson, started a u-pick vegetable business in Puyallup during the summers when Dan was off from his job teaching biology at Lincoln High School in Tacoma. While the couple grew mostly beans and cucumbers, which they sold out of the garage, Dan also had a couple small greenhouses in the backyard where he grew fuchsia baskets and jade plants to sell alongside the veggies. Fran Watson was a stay-at-home mom until Maidee’s younger sister, Terri, went to college, then Fran went back to work as a secretary at Stadium High School in Tacoma. Meanwhile, Dan added greenhouses to grow more plants he sold during the u-pick season. “We call this his hobby out of control,” Watson said. After she earned a chemical engineering degree, Watson moved back to Washington in 1984 to look for a job and helped her parents with their vegetable sales, which included wholesale supplies for the local Larry’s Markets. The family also had more houseplants to sell from her father’s greenhouse expansion. “That’s when we started talking about, you know, maybe we should just open our own retail store,” Watson said. “We just decided we were going to take the chance and open the door and see what happened.” Her mother quit her job to open the store with Watson,
whose father continued teaching for another six years while expanding his greenhouses. Watson’s sister, now Terri Elliott, joined the business in 1993 after working for Nordstrom. She helped to grow the gift side of the business. Watson’s three sons—Elliot Gregory, 30; Addison Gregory, 33; and Taylor Gregory, 35—all work in the business, too, and are expected to take it over someday, she said, with Addison, chief operating officer, likely leading it. Elliot manages e-commerce and Taylor works on the growing side. Watson’s niece Sophie Elliott, 21, works occasionally in the business as well. Dan Watson, now 85, still helps out. Since Watson’s opened, he has focused mostly on raising plants for the growerretailer, Watson said. “That’s really his passion and he’s still a big help in the springtime when we’re super busy,” she said. The business has about 50 year-round staff and can reach 90 to 100 at peak season, Watson said. While expanding its business, Watson’s also looks to grow its sustainability practices. It’s examining whether it can move to biodegradable pots as plastic pots become harder to find. It reuses plastic pots for certain plants, but it must take care not to introduce diseases to susceptible species. It’s examining ways to cost effectively sterilize, wash and reuse pots. Watson’s also composts myriad waste material and is considering additional sustainability efforts, including whether it could add solar panels to power its operations and add holding tanks to collect rainwater. The Puyallup location spans about eight acres and has roughly 80,000 square feet of greenhouses, which Watson’s uses to grow plants and store others it buys from wholesale nurseries. All the plants Watson’s grows are outdoor annuals. The houseplant business boomed during the pandemic as more people stayed home and sought new hobbies or the soothing presence of indoor greenery, Watson said. But when the pandemic began, no one knew what was ahead. Watson’s initially closed and then eased back open, starting with shopping by reservation. It also launched online orders for curbside pickup or delivery. In April 2020, Watson’s was getting more than 100 e-commerce orders daily and online ordering remains strong, Watson said.
Heritage was there from the start
“When the pandemic hit, when everything was shutting down in March, we were headed into the three biggest months of the year for us, and so you had that moment of, ‘Oh my gosh, can we even survive this?’” Watson recalled. While Watson’s manages its cash flow and business carefully, it started forecasting what could happen if it had to close from March into May. She quickly connected with her
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gourmet foods that sell well year-round and conducts food tasting events for products that its sells. Watson’s also supplies some of its gourmet foods to Fran’s Garden Bistro. Heritage banker and applied for the first round of Paycheck Protection Program funding. “He’s sending me the forms, making sure we get them in and called me personally to tell me we had been approved, which was like an amazingly awesome day,” she said. “It’s just all of those kind of things—it makes it so much easier to run your business when you know your bank is with you.” Heritage has numerous services to offer, she said. “We haven’t always taken advantage of some of those, but it’s really great to be able to have them come out and evaluate our credit card processing or any kind of function like that and help us look at what options we have,” she said. The bank also has helped evaluate funding options when Watson’s explores expansion or new ventures. Are new stores possible? “I think it depends,” she said. “Opening the second store has been a great learning experience…I think the biggest thing that’s come out of this that we probably didn’t foresee is how much we’ve learned from the Federal Way store that we’ve put into practice in the Puyallup store.” While its business is seasonal, Watson’s has worked to build its off-season. The houseplant boom has helped boost winter months, she said. Additionally, Watson’s sells packaged
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Asked about tips for managing cash flow around the seasons, Watson said she closely monitors historical cash flow to help project future needs. “We always shoot to end the year with the necessary cash to get us through those slower times,” she said. Watson watched her parents sacrifice early in the business, instilling in her a conservative fiscal foundation on which to build. Watson said it’s also important to learn and fully understand financial statements and ensure leaders receive them each month. New businesses aren’t always sure where they stand financially and it’s critical to grasp those statements early, she said. “You can never plan and budget enough,” Watson said. “You kind of learn that as you go along, but I also think on the flip side, thanks to our relationship with Heritage, we have a really great line of credit that we can use if we need to.”
ABOUT WATSON'S RELATIONSHIP MANAGER, BRETT WILLIS Brett has been with Heritage Bank since 2016. He has broad experience in commercial lending and business banking, with a focus on commercial and industrial (C&I) industries, commercial real estate, contractors, manufacturers, healthcare, nonprofits and distributors. In his community, Brett serves on the board for the Pierce College Foundation and volunteers at the Tacoma Art Museum, Emergency Food Network and NW Furniture Bank.
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Salvation Army NW
USING MOBILE VANS TO MOVE HOMELESS INDIVIDUALS INTO PERMANENT HOUSING
The Salvation Army Northwest Division has devised a creative way to connect with those experiencing homelessness: a van. The program, called Street Level, was created in response to the growing homeless population throughout King County, which, according to the Department of Community and Human Services was about 40,800 people in 2020.1 The Salvation Army wanted a better way to connect with those living on the street or in their cars. So, the two-person team drives the bold red and white painted vehicle around cities outside of Seattle (like Kent, Auburn and Renton) meeting people where they are. In addition to offering something to drink and basic necessities, like socks and personal hygiene products, the team also works to connect them with affordable housing and jobs opportunities.
Salvation Army NW
The Street Level team is able to take services to the front line of those in need, and it’s with the support of community leaders, housing entities, social service agencies and law enforcement that they’re able to do so. They can immediately assess the needs of each individual or family and develop a plan that makes sense for their situation. This is an essential piece of the program and part of what makes it so successful.
Through the program, the Salvation Army committed to housing eight individuals per quarter for a three-year period. Since then, they’ve housed an average of 28 individuals per quarter, which is three times higher than anticipated. Since it began three years ago, the Street Level program has permanently housed close to 400 individuals with 97% remaining in permanent housing for 12 months or more. This equates to serving 2-3% of the unhoused population in King County. While the program has exceeded expectations, there are still thousands of people still living in abject poverty facing eviction, mental health challenges, social isolation and, ultimately, homelessness. The Salvation Army is hopeful that with more vans, they’ll be able to reach more people. So, Heritage donated $50,000 to help with the costs associated with securing and outfitting additional vehicles. As of December 2021, they now have two fully operational vehicles and have purchased two additional vehicles. Street Level is a relationship-based, long-term partnership with a goal to create a community that helps individuals find and remain in permanent housing with the confidence, support and network to achieve long-term success. 1 https://kingcounty.gov/depts/community-human-services/data-insights.aspx
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INSIDE HERITAGE DIRECT
The Benefits of an Online Banking Administrator
A
small business may only have a handful of employees and one or two who need access to online banking, while a larger business may have hundreds of employees with several of them needing access. Regardless of your size, it’s always a good idea to monitor who’s accessing your business’ online banking, which accounts they can see and how much control they have over your funds. This is where an online banking administrator comes in.
At Heritage, we require every business customer using Heritage Direct to choose a company admin. This person is identified as soon as the business signs up for online banking and it can be any employee or affiliate (CEO, CFO, accountant, office manager, etc.). They will be responsible for adding new users, updating user profiles, deleting users and unlocking passwords as well as determining service permissions, settings and which accounts should be accessible. This gives the company admin complete control over the degree of access of each online banking user.
• • • • •
User maintenance Payments Reporting Risk management Alerts
* Some of these options are only available for businesses using Heritage Direct Corporate.
account, create and make bill payments, approve and release wire and ACH batches and more. Because this person has important rights and privileges, careful consideration should be given when designating who you want your company admin to be. This will also be the person we work with directly should there be any issues with your Heritage Direct profile. Your treasury management relationship officer can help you determine the best person to be your company admin, provide them with training and be a resource should there be any questions while using the system.
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In addition to their administrative functions, the company admin also has a high-level of access to the business’ funds and accounts. They can transfer money from account to
Using company admin permissions to control access to:*
ABOUT THE AUTHOR: SAM FOSBERG Sam Fosberg has been with the bank since 2019. She started as a digital banking specialist and worked her way up to her current position of digital banking commercial supervisor. Outside of work, Sam enjoys spending time with her husband and dog and going on outdoor adventures, like camping, boating and fishing.
Equal Housing Lender | Member FDIC
Learn more about setting up permissions and other features of Heritage Direct at HeritageBankNW.com or contact us at 800.455.6126 for assistance.
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In 1971, Guinness World Records granted the recognition of the Smallest Park in the World to Mill Ends Park located in Portland, Oregon. The circular park, surrounded by a small “sidewalk,” spans a mere 24 inches in diameter. It was designed as a city park on March 17, 1948, at the request of journalist Dick Fagan to be used for snail races and as a colony for leprechauns.
Harassing Bigfoot Could Land You in Jail
Yes, you read that right. It is illegal to harass or kill Bigfoot (or any Sasquatch/ undiscovered subspecies) in Vancouver, Washington. This creature has been a part of the North American folklore for centuries and is said to be the “missing link” between the evolution from ape to human. His popularity—and elusiveness—has drawn in many believers from around the world to prove his existence. So far, any evidence suggesting otherwise has either been a hoax or inconclusive. But if you do happen to run into him, just remember…harming him could land you a hefty fine or even in jail.
There are Llamas Everywhere
In Oregon anyway. Twenty-five percent of the country’s llama population live in Oregon. There are llama farms everywhere in the state, with the majority being found in Clackamas, Washington, Yamhill and Marion counties. You can even get up close and personal with these animals at one of the yearly alpaca fests in Sherwood, Oregon. You can meet them and their babies, then shop for fleece, yarn, hats, gloves, sweaters, teddy bears and more!
Meet Jake the Alligator Man
Sometime in the 1960s, Wellington Marsh Jr. and his wife Marian walked into a San Francisco antique shop where they spotted what looked like a mummified half-man, halfalligator—and fell in love. They shelled out $750 for the creature and headed back home to Long Beach, Washington,
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Creative Commons
Home to the World’s Smallest Park
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rev.sherm/Creative Commons
PNWONDERLAND
Oddities of the PNW
where he’s been on display ever since. Named Jake the Alligator Man, the Marshes had been using his photo for postcard souvenirs. Nearly a decade later, Weekly World News printed the postcard image on the front page with the headline, “Half Alligator, Half Man Found in Florida Swamp.” There are many rumors about Jake’s past and nobody knows the truth for sure. Regardless, he has become a beloved icon among the Marsh family, community members and those who visit Marsh’s Free Museum.
A Symbiotic Relationship Between a Bike and a Tree A bike that’s been eaten by a tree? That can’t be true. But it makes for a great story. On Vashon Island in Washington, a rusty, old bike hangs seven feet off the ground—growing inside a tree trunk. There are a couple theories of how the bike got there, but a local favorite is that a young man, who left to fight in World War I, abandoned his bike and never returned for it. Eventually, the real story came out in a local newspaper years later. Though locals still aren’t convinced. Was a bike really left resting against a tree trunk or was there something more magical at work?
Banking Business a publication of Heritage Bank
brought to you by
Are You Ready for Your Portfolio to Make a Difference? INTEREST IN MAKING AN IMPACT with one’s
Setting Expectations
investments has grown in recent years, which means many investors may have an increased interest in environmentally or socially focused investments as well. In fact, impact investments account for $502 billion of managed investments worldwide, with 58% held in North America. Curious to learn more about impact investing?1
Making a difference in the world is only one consideration with impact investing. In a 2020 survey of impact investors, 88% indicated that the financial performance of their investments was either in line with or outperformed their expectations.3
What Are Impact Investments?
Here are a few concepts to keep in mind:
Impact investments are made with a measurable or tangible goal for social change in mind. From there, the criteria may differ depending on your own values and focuses. For example, you may choose to invest in a company that commits to planting a certain number of trees per year or another organization that provides resources to school districts in low-income communities. You may hear other phrases used in conjunction with impact investing, such as socially responsible investing (SRI) or environmental, social and governance investing (ESG). These investment models follow more specific criteria and guidelines such as ethical business practices, environmental conservation and local community impact.2 Impact investments, SRI and ESG investments have certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller.
Tips For Impact Investing Your values: What specific areas of impact are you hoping to make with your investments? Are you focused on sustainability, social justice, your religion or another area? Deciding what you’re looking to accomplish can help narrow your focus. Types of investments: There are a variety of investments that are structured to help pursue your goals when it comes to impact investing. As you define your values, the types of investments may become clearer. Impact reports: Impact reports are designed to provide information that breaks down how the company is making a difference and what measurable goals they’re following. Impact reports are one factor to consider as you evaluate opportunities. Impact investing can help keep your investment aligned with your personal beliefs. As you consider whether this choice may be appropriate for you, don’t hesitate to reach out. We may be able to provide some information or identify some resources that you may find insightful.
REFERENCES
1 TheGIIN.org, April 2019; 2 CFAinstitute.org, April 2021; 3 TheGIIN.org, 2020
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2021 FMG Suite. Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency. 1000 SW Broadway, Suite 2170, Portland, OR 97205, (888) 360-0052. Equal Housing Lender | Member FDIC
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BUSINESS BANKING MENTOR
Managing Seasonal Demand
I
f your business experiences fluctuations in sales depending on the seasons, buying cycles or holidays, find out how to maximize sales during peaks and minimize losses in the troughs.
One of the greatest challenges for any business is the sudden fluctuation in sales and cash flow due to seasonal cycles. Feasts and famines both have their issues (either the business can’t cope with demand or there’s not enough work to pay the bills). Creating a sales strategy around your industry characteristic is the key to solving this seasonality, which could be date specific events such as national holidays (it’s always Christmas on December 25), school vacations, weekly and weather seasonality where you know certain days are always busier than others. There is also unpredictable demand, like a crisis that cuts sales, a sudden boom that doubles your business overnight or a local event you know will bring in one-off business.
To help spread the impact of seasonality in your business consider the following strategies.
Flatten the demand curve
Use your sales and marketing tactics to spread demand across the year by promoting either side of the peaks (especially if you lose customers because you’re too busy). If you can, encourage customers to bring their purchasing forward or deliver later to even out the sales bump. During the downtimes, you’ll want to encourage more customers to fill up the gap. Some tactics to do this include: • Changing your price. If demand is high, you could increase prices with the assumption demand will drop just enough to still be busy. And if demand is low, offer discounts or incentives to encourage purchases. • Allow customers to pre-purchase in exchange for a discount, free product, service or other high-value but low-cost item.
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• Set up a yearly payment plan or subscription model that encourages customers to pay monthly.
We understand that cash flow can fluctuate, especially for seasonal businesses. And it’s important to have a plan for how you’ll manage money during the lulls. Speak to one of our expert bankers for advice on putting a solid strategy together.
Spreading sales can be harder with perishable products and services but there could be new products you could source to take the slack.
Diversify
If you can diversify what you deliver during quiet periods, it could provide additional opportunities to redirect resources and be more resilient to fluctuating demand across the year. Ways to diversify include: • Launching new products or services outside your usual sales high. • Consider partnering with other businesses that are complementary (you sell their products when you’re not busy, they sell yours in return) or sub-contract and supply to larger businesses. • Importing or exporting non-seasonal products or investigate becoming a supplier to non-seasonal businesses. • Looking at new sales channels, such as moving parts of your business online to sell in other regions that don’t suffer wild seasonal swings. Don’t forget to search the internet, subscribe to industry news, visit business association sites and talk to suppliers and experts to validate your ideas.
Keep your ear to the ground
If it’s possible, take short-term advantage of anything that occurs out of the ordinary, even if it’s only for a few days like a sports or cultural event hosted locally. This includes opening for longer during the day or even seven-day weeks if you need to. Also consider opening pop-up stores in other regions or creating your events in partnership with other businesses to generate demand.
Develop contingency of supply
Identify and access a surplus of products or services to satisfy temporary high demand if needed, or if you’re recovering from a crisis and now need to scale back.
Manage the off season
Think about what you can do to efficiently scale down for the expected drop in sales and when customers may still need support. This could mean closing parts of the business (think ski fields in summer, professional services during Christmas, etc.), using the time to prepare for the next season or doing something else. It’s not unusual for some businesses to have two separate parts to their business that open and close with the seasons.
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Manage the on season
If you do find a sudden increase in demand, remember to expand or manage customer service levels. The last thing you want is unhappy customers waiting for delivery or to run out of product. To help do this: • Arrange back-up suppliers in case your existing providers run short and buy in volume before any expected increase so you don’t run out. If you can buy inventory on consignment (only pay for what you sell) even better. • Use inventory management software linked to sales so staff don’t order too much of the wrong item and be prepared to offload any spare product or materials at the end of the season. • The supply of staff is also critical so plan to add people quickly when busy and reduce when you’re not. Juggling staff during the holiday season when everyone wants time off can also be tricky. • Investigate contracting out parts of your operation to other businesses if demand blows up. Almost every business has some form of seasonal demand and it’s not always a disaster if that’s the dynamic of your industry. How you manage and deal with the issues that could derail your business is what counts and take care to save and protect any cash surplus during the good times to rely on when times are tight.
Next steps
Ask for the event calendars of local sports clubs, towns or cities to build a sales campaign for one-off occasions. Form partnerships with other businesses that either have different seasonality cycles or are in totally different industries that don’t experience fluctuations at all. Audit the type of seasonality your business experiences and then develop contingency strategies to manage the impact this will have. HeritageBankNW.com
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This is the second article in a series brought to you by Heritage Wealth Strategies. Read the first article in the previous issue and look for the rest of the series in upcoming issues of Banking Business.
Retirement Mistakes Small Business Owners Make Vecteezy
(and strategies to address them)
SMALL BUSINESS OWNERS are an essential component of America’s economy. In the United States, 99.7% of all firms are comprised of small businesses with 500 or fewer employees.1 Too often, however, a small business owner spends so much time and energy building their company that they neglect their personal financial future. That’s why we’ve created this four-part series on mistakes to avoid and steps to take when building the retirement you desire while managing your myriad responsibilities. Our goal is to show business owners how to maximize the value of their companies with business strategies that may also help them prepare for retirement.
STRATEGY #2: HAVE AN EXIT STRATEGY
For many business owners, the idea of selling their companies for top dollar or passing them down to future generations is a retirement dream. Many entrepreneurs, however, are not doing the work necessary to turn this dream into a reality. Studies show that 50% of business owners plan to leave their business in the next decade, but fewer than 30% have a business succession plan. One-third of business owners plan on their retirement to begin sometime between their mid-fifties and mid-sixties.1,2 No matter how long you want to work and how much you love your business, a clear exit strategy is necessary to help foster the company’s longevity and preserve your financial health. If you want to be able to retire when and how you would like—and have your business last beyond your career— you need an exit strategy for accomplishing that goal.
Nearly one-third of U.S. businesses survive to the second generation— and only 12% to the third.3
WHAT TO DO NOW
• Define your ideal exit strategy. Do you want to sell your business? Pass it to the next generation? Find an outside successor? • Determine the real value of your business. Hire a qualified professional to provide a clear valuation of your company as it is today. Depending on how far you are from retirement or exiting, you might need to revisit this valuation in the future. • Create a strategy—and stick to it. Your exit strategy might require you to hire new people, adjust your services or implement a number of other changes.
We know creating an exit strategy can seem overwhelming. We’re here to serve as a resource for you and are happy to discuss your current financial situation and future goals. Contact a Heritage Bank wealth advisor to schedule an appointment today.
This material is for information purposes only and not intended as an offer or solicitation with respect to the purchase or sale of any security. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss during periods of declining values. Neither the named representative, nor the named Broker-Dealer or Registered Investment Advisor, gives tax or legal advice. Past performance does not guarantee future results. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial professional for further information. These are the views of FMG Suite LLC, and not necessarily those of the named representative, Broker-Dealer, or Registered Investment Advisor, and should not be construed as investment advice. Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency. 1000 SW Broadway, Suite 2170, Portland, OR 97205, (888) 360-0052. REFERENCES 1 The Canadian Federation of Independent Business, November 2018 2 Score Association, April 9, 2019 3 PwC, 2019 12
Issue 5 | 2022 Q2
Banking Business a publication of Heritage Bank
BALANCING YOUR BUSINESS AND HOME LIFE
T
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rying to manage the demands of your business and your home life can be an ongoing challenge. Achieving the perfect work-life balance might seem like an impossible goal but there are always ways you can improve your current situation. Balancing work and home life without guilt To find your work-life balance, you’ll have to first consider all the daily tasks that compete for your time. Then, you’ll need to determine which ones to retain and which ones to cast aside. The right work-life balance for you will most likely change over time. For example, if you created your business when you were single but are now married with children, you’ll be looking to achieve a different balance from your younger days. Use technology to your advantage So many of your organizational tasks as a business owner can now be achieved more efficiently, in less time and with less stress, whether it’s managing your accounts and inventory or storing documents and files. Use your smartphone wisely It’s been said that smartphones are the entrepreneur’s biggest blessing and biggest curse. Because of your intelligent mobile device, you can work anytime, anywhere as a business owner—essentially breaking up the boundaries between work and home life. Aim to get the most out of your business smartphone to make your working life easier (and home life more relaxing). For instance, you could: – Create a virtual filing cabinet. Record and store your essential documents electronically, whether that’s invoices, receipts, documents or business cards. An app like Evernote can easily record these. – Digitize your printed marketing material. Use an app like Camscanner to transform your business’s brochures into PDF documents that you can email to your customers. – Produce instant testimonials. If you’re talking to one of your satisfied customers, ask to take a short video of them giving your business feedback. Then upload it to your website as a testimonial. – Schedule video conferences while on the move. Your time is precious so employ the services of an app like Google Hangouts to meet with your staff virtually while traveling to work or making your way to meet an important customer. Finding out how to integrate and connect a successful business and a happy home life should be one of your goals—and your smartphone can help you achieve it.
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Remove that guilty feeling As a business owner, you might be having trouble overcoming the guilt of working long hours while accepting that you need personal time for yourself and your family. Put some measures in place to lesson your guilt, such as: – Creating one calendar for both work and home life. Sync your calendar with the devices of your staff and family so they’re all aware of how you’re allocating your time. – Sticking to a daily routine. Ensure that you don’t miss that phone call with your partner (or the weekly baseball practice with your child) by adding these home life routines to your daily schedule. – Adopting a positive mindset. It’s been said that optimistic people are healthier and live longer than pessimists—and they’re able to stay motivated, manage stress effectively and be ready for the unexpected. Allow for some private “me” time Plan time to completely disconnect from your business. This is where having trustworthy staff that you depend on can help prevent you from burning out. Build your trust in your employees by increasingly delegating them more challenging tasks or roles. As you begin to understand how much workload they can manage and what tasks they do exceptionally well, you’ll start to feel more relaxed about entrusting your business to them. As a result, you’ll be more comfortable about taking time out to refresh, revitalize and enjoy family time. Summary You may not be able to reach your level of perfect life-work balance but you can get as close to that level as possible (and remove any guilty feelings in the process). Accepting a level of sacrifice to meet all your work and home life demands is par for the course for most entrepreneurs.
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Common Scams that Target Small Business Information courtesy of the Federal Trade Commission | business.ftc.gov
Your best protection against scammers is to learn the signs of scams that target businesses. Then train your employees and colleagues on what to look for so they can avoid scams. This is part two of an article on protecting your small business from scams. Find part one in Issue 4 of Banking Business (Q1 2022) online at HeritageBankNW.com/BankingBusiness or ask for a copy at your local Heritage Bank branch.
Unordered Office Supplies and Other Products
Someone calls to confirm an existing order of office supplies or other merchandise, verify an address or offer a free catalog or sample. If you say yes, then comes the surprise — unordered merchandise arrives at your doorstep, followed by high-pressure demands to pay for it. If you don’t pay, the scammer may even play back a tape of the earlier call as “proof” that the order was placed. Keep in mind that if you receive merchandise you didn’t order, you have a legal right to keep it for free.
Directory Listing and Advertising Scams
Con artists try to fool you into paying for nonexistent advertising or a listing in a nonexistent directory. They often pretend to be from the Yellow Pages. They may ask you to provide contact information for a “free” listing or say the call is simply to confirm your information for an existing order. Later, you’ll get a big bill, and the scammers may use details or even a recording of the earlier call to pressure you to pay.
Utility Company Imposter Scams
Scammers pretend to call from a gas, electric or water company saying your service is about to be interrupted. They want to scare you into believing a late bill must be paid immediately, often with a wire transfer or a reloadable card or gift card. Their timing is often
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Issue 5 | 2022 Q2
carefully planned to create the greatest urgency — like just before the dinner rush in a restaurant.
Government Agency Imposter Scams
Scammers impersonate government agents, threatening to suspend business licenses, impose fines or even take legal action if you don’t pay taxes, renew government licenses or registrations or other fees. Some businesses have been scared into buying workplace compliance posters that are available for free from the U.S. Department of Labor. Others have been tricked into paying to receive nonexistent business grants from fake government programs. Businesses have received letters, often claiming to be from the U.S. Patent and Trademark Office, warning that they’ll lose their trademarks if they don’t pay a fee immediately or saying that they owe money for additional registration services.
Tech Support Scams
Tech support scams start with a call or an alarming pop-up message pretending to be from a well-known company, telling you there is a problem with your computer security. Their goal is to get your money, access to your computer or both. They may ask you to pay them to fix a problem you don’t really have or enroll your business in a nonexistent or useless computer maintenance program. They may even access sensitive data like passwords, customer records or credit card information.
Banking Business a publication of Heritage Bank
Social Engineering, Phishing and Ransomware
Cyber scammers can trick employees into giving up confidential or sensitive information, such as passwords or bank information. It often starts with a phishing email, social media contact or a call that seems to come from a trusted source, such as a supervisor or other senior employee, but creates urgency or fear. Scammers tell employees to wire money or provide access to sensitive company information. Other emails may look like routine password update requests or other automated messages but are actually attempts to steal your information. Scammers also can use malware to lock organizations’ files and hold them for ransom.
Business Promotion and Coaching Scams
Some scammers sell bogus business coaching and internet promotion services. Using fake testimonials, videos, seminar presentations and telemarketing calls, the scammers falsely promise amazing results and exclusive market research for people who pay their fees. They also may lure you in with low initial costs, only to ask for thousands of dollars later. In reality, the scammers leave budding entrepreneurs without the help they sought and with thousands of dollars of debt.
Changing Online Reviews
Some scammers claim they can replace negative reviews of your product or service or boost your scores on ratings sites. However, posting fake reviews is illegal. FTC
guidelines say endorsements — including reviews — must reflect the honest opinions and experiences of the endorser.
Credit Card Processing and Equipment Leasing Scams
Scammers know that small businesses are looking for ways to reduce costs. Some deceptively promise lower rates for processing credit card transactions or better deals on equipment leasing. These scammers resort to fine print, half-truths and flat-out lies to get a business owner’s signature on a contract. Some unscrupulous sales agents ask business owners to sign documents that still have key terms left blank. Don’t do it. Others have been known to change terms after the fact. If a sales person refuses to give you copies of all documents right then and there — or tries to put you off with a promise to send them later — that could be a sign that you’re dealing with a scammer.
Fake Check Scams
Fake check scams happen when a scammer overpays with a check and asks you to wire the extra money to a third party. Scammers always have a good story to explain the overpayment — they’re stuck out of the country, they need you to cover taxes or fees, you’ll need to buy supplies or something else. By the time the bank discovers you’ve deposited a bad check, the scammer already has the money you sent them, and you’re stuck repaying the bank. This can happen even after the funds are made available in your account and the bank has told you the check has “cleared.”
LEARN
REPORT
ENGAGE
For more tips on protecting your organization from scams, visit FTC.gov/SmallBusiness.
If you spot a scam, report it to FTC.gov/Complaint. Your report can help stop the scam.
Remember: Your best defense is an informed workforce.
Stay informed by signing up for scam alerts at FTC.gov/Scams.
Alert your state Attorney General. You can find contact information at NAAG.org.
Equal Housing Lender | Member FDIC
Talk to your staff about how scams happen.
HeritageBankNW.com
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Shutterstock
Expand Your Business Model Changing your Business Model A change in your business model can bring substantially more income—sometimes for less work and lower overhead costs. Explore other business models that complement your existing business and see where it takes you. For example:
Sell un-used capacity
– A manufacturing company might provide contract production for other businesses, helping to fill capacity, increase profitability and offer leverage to get better buying prices due to increased volume. – A producer of food or beauty goods might offer the same product under different brands (for instance, a premium brand and a house brand) and let other distributors sell them to the market. – Someone who owns a retail or office space might rent out part of their facilities to others.
Go to the market
Instead of waiting for customers to come to you, can you take your business to them? – A coffee shop might buy a mobile coffee cart, allowing 16
Issue 5 | 2022 Q2
them to take their service to meetings and events. – A bakery might start charging a small fee to download unique recipes from their website to generate passive income.
Offer pre-paid services
– A service provider might introduce fixed-rate service agreements rather than charging fees by the hour. A fixed-rate business model aims for predictable cash flow in advance. Customers paying by direct debit eliminates invoicing costs and debt collection issues. – An accounting firm offering accounting services at a fixed fee per month, regardless of the activity level. Or an IT business might offer 24-hour help desk service for a monthly fee. This provides a reliable revenue stream, regardless of whether the service is used or not.
All industries are different and your business may require special legal or licensing considerations. Consult an attorney, your city or county business licensing office or a financial advisor to discuss your options and next steps. Banking Business a publication of Heritage Bank
Types of Business Models The Franchise
The Broker
The Advertising Model
Businesses that successfully become franchises are those that have robust and efficient systems in place. If your business runs like a well-oiled machine with great systems and streamlined processes, including well-trained staff, then there’s a good chance it can become a successful franchise.
The broker essentially brings buyer and seller together and takes a transaction fee. This category has exploded with the growth of online platforms that make bringing buyers and sellers together from anywhere in the world much easier. Amazon, Facebook, eBay and all the other online product platforms are good examples where they don’t always buy or hold stock. They just broker the deal.
Online sites and publishers often use this model because it’s difficult to get users to pay for content that they can find for free in most cases. The idea is to present news, information or feature articles that attract an audience and then sell advertising space to businesses that have a message for that audience.
The Reseller Resellers find products or represent brands and generally make profit based on the difference between the price they sell a product for and the price they pay to buy it. Consider if you can find additional products from other businesses that your customers would buy.
Affiliates Getting people to re-sell your product or service gives you the ability to reach more customers than you could on your own, usually through affiliate programs, which is like selling on commission.
The Manufacturing Model This model involves manufacturing products to be sold to distributors, retailers, etc. As a manufacturer, you have the capabilities to mass produce products which, in turn, helps you build up relationships with distributors, wholesalers and retailers.
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The Subscriber The internet has facilitated an explosion of subscription-based businesses, where customers are charged a monthly fee to access a service or product. A subscription model has the potential to work for nearly any type of business, provided your customers are willing to commit to recurring payments in exchange for defined products or services.
The License/Royalty Model With this model, you’ve developed something innovative that you then protect through a patent, copyright or trademark (aka intellectual property). You would then license the innovation or technology to a second party whose responsibility it is to commercialize the innovation. As compensation for allowing another party to use its intellectual property, the licensor will receive a royalty.
The Contracting Model This is pretty much what it sounds like. Your business is one that pitches for contracts and is commonly used for industries such as construction. These mostly operate for B2B businesses, and with the rise in the number of businesses outsourcing many different projects, the contracting model is becoming increasingly popular.
i
PRO TIP:
The power of free samples.
For years businesses have given away small samples to entice customers. Telecommunication companies give away smartphones to gain data plan subscribers. “Buy one get one free” is a common tactic in retail. The internet has greatly expanded this model because its reach is so wide. Businesses now give away significant samples intending that a small percentage of customers will buy additional products. Think about how you can apply this model to your business. Your “giveaway” could be some valuable information offered online through various websites which attracts interest and leads to sales opportunities. HeritageBankNW.com
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Which Loan is Right for You? Business loans are a viable way to keep operations going. They can be used to boost cash flow short-term, help you purchase necessary equipment, secure a new location and more. But figuring out which loan is right for your business can be overwhelming. You should always consider things like interest rate, annual percentage rate (APR), BUSINESS EXPRESS
COMMERCIAL MORTGAGE
TERM LOAN
This type of loan is used to:
Get capital quickly and conveniently for small business needs.
Finance commercial properties.
Cover a large one-time expense.
Overview
Offers flexible loan products to help purchase new facilities, equipment or help your business with seasonal cash flow needs. Includes both term loans and lines of credit.
Finance the acquisition or improvement of a commercial property or refinance an existing commercial mortgage loan.
Finance short- or long-term expenses associated with the operations of your business such as equipment, working capital, expansion or other projects.
Loan size
• Commercial real estate up to $750,000
Varies
Varies
Up to 10 years
5 to 20 years
3 to 20 years
• Fast and convenient loan process
• Long-term financing secured by a lien on the property
• Competitive variable or fixed-rate loan options
• Competitive fixed-rate loan options
• Terms matched with the purpose and underlying collateral
• Loans and lines of credit up to $500,000 Terms Details
• Minimum documentation required • Commercial real estate loans available with fixed interest rates for 10 years with 25-year amortizations • Equipment term loans available with fixed interest rates and full amortization up to 7 years • 0.50% interest rate discount with Heritage Bank checking account and automatic payments
• Loan terms typically between 5 to 10 years
• Flexible and seasonal terms
• Monthly principal plus interest payments based on an amortization of 25 years or less
HBCDE Update: Community Development Fund Does my project qualify? The Heritage Bank Community Development Entity (CDE) was created to encourage business expansion in low-income communities by providing an attractive loan program with better rates and terms and more flexibility than a traditional loan. We hope these investments will revitalize development by creating jobs and increasing the availability of goods and services in economically distressed areas. You can read the full story about our CDE in our 2021 fourth quarter issue. 18
Issue 5 | 2022 Q2
Criteria #1: Low-Income Community Is your project located in a low-income community? Our loan fund will match the geographic areas that are published by the U.S. Department of Treasury’s CDFI Fund for their New Markets Tax Credit (NMTC) program. Search for the address of your project location using the NMTC online mapping tool. Access the tool by scanning the QR code to the left. Banking Business a publication of Heritage Bank
repayment terms and any other fees associated with securing the loan. More importantly, though, is determining what your ultimate goal is for the business and which loan will help you get there. Below is a comparison of some of our most popular business loans. Our bankers know that no two businesses are alike, and they’ll work alongside you to find the right solution that fits your needs. For more information about a particular loan or general guidance, make an appointment with one of our experts today. LINE OF CREDIT
EQUIPMENT FINANCING
COMMUNITY DEVELOPMENT LOANS
SBA LOANS
Quickly access working capital.
Finance new or used equipment and supplies.
Finance major fixed assets that promote business growth and job creation. Backed by the government.
Finance businesses in economically stressed areas.
Access working capital funds to improve cash flow and help finance operating expenses. Loan amounts, rates and terms can be tailored based on your business and financing needs.
Purchase machinery and equipment essential to run your business. At the end of the term, you’ll gain ownership of the equipment and may be eligible for tax savings through depreciation deductions.
Small Business Administration (SBA) loans are specifically designed for small business owners, and as a preferred lender, we will help identify the program that best fits your business’ needs. Programs includes SBA 504, SBA 7(a) and SBA Express.
Heritage Bank formed its own Community Development Entity to expand the financing we bring to businesses in low-income communities in Washington and Oregon.
Varies
Minimum loan size $50,000
Up to $5 million
$500,000 to $9 million
Revolving
Up to 7 years
5 to 25 years
Up to 12 years
• Secured and unsecured options
• Up to 100% financing on new and quality used equipment
• Great for providing working capital
• Below-market interest rates* • Lower origination fees
• No loan origination fee
• Longer term financing available for the purchase of real estate, equipment or inventory
• No prepayment penalty
• Business acquisition
• Minimum loan size of $50,000
• Enterprise refinancing
• Up to 7-year fixed rate available
• Reduced debt service requirements
• Competitive variable interest rates
• Local decision making with rapid response
• Improve cash flow with longer terms
• Fully amortizing loans
Criteria #2: New Investment in Community Will at least 25% of the funds be used for building improvements and/or construction? Because bringing new investments into these communities is a primary goal of this program, at least 25% of the real estate project (excluding land cost) must be for funding new money into improvements (including construction). Purchase or renovation of existing real estate is eligible if there is funding for tenant improvement or renovations to achieve the 25% minimum. Equal Housing Lender | Member FDIC
• Lower debt coverage ratios • Longer maturities • 7-year loans of interest-only payments
* Target interest rate of 3%, subject to change based on project risk and changes in market interest rates.
Criteria #3: Commercial Use Is your project primarily commercial? Residential development is not eligible under the program. However, mixed-use projects are eligible as long as the majority of the rental income is derived from the commercial tenants. If you answered yes to all three questions, visit our website at HeritageBankNW.com to make an appointment with one of our expert bankers to begin the application process.
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Lacey Potter
MY HERITAGE
Travel, Wine and a Collection of Starbucks Cups
Since then, we’ve visited around 21 countries. It’s hard to keep track sometimes, especially when there are two or three countries within a train ride from each other. Some of the countries include Italy, Denmark, Turkey, Spain and Portugal. My all-time favorite though is Norway.
And with cooking, there was always wine. My husband and I weren’t big into wine when we moved to England, but all of our friends kept saying “Try this!” and “Try that!” Eventually it became a way of life. Now, my husband and I are club members in Washington and California and continue to enjoy wine from all over the world. And anytime we’re together (he’s currently deployed) or we have friends visiting, we go wine tasting. Lacey Potter
As a Navy wife, I’ve had the opportunity to travel all over the world. It started when my husband was stationed in England for three years. It was the first country I had ever visited—and I immediately fell in love. Everything was so old and there’s so much history. Not to mention, the royal family lives right down the street. You just don’t get that here in America.
the winter. It was so dark it felt as if you could reach out and touch the northern lights. It was an experience that just didn’t seem real.
Happy travels!
I picked up cooking during my travels and spent some time studying with chefs. I have a robust knowledge of different cuisines and have most recently been working on a cookbook to publish. Cooking was easy to get into over there. Not only because I grew up eating Spanish cuisine but because the food is so fresh.
Lacey Potter is the customer service center department manager at Heritage Bank. She started at Whidbey Island Bank as a teller and held a number of other positions. After the merge with Heritage Bank, Lacey knew she wanted to stay with the team and has been in her current role for the past nine years. She’s been the wife of a Navy chief for 20 years, they have two Border Terriers and is a recent graduate of the Pacific Coast Banking School.
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ABOUT THE AUTHOR
Lacey Potter
We haven’t been able to travel recently but my husband and I are excited to plan our next trip back to our old stomping grounds in England. We’ll make a special stop at Starbucks, of course, so I can Lacey's home wine bar shows off her collection. pick up a coffee mug. I have 53 mugs and counting. The collection has grown so much There’s a humbleness and beauty about Norway; it that friends actually send me mugs from the places they’ve reminds me of my childhood home in Alaska. While we visited! My most precious mug is from a friend’s father, were there, we went to the Arctic Circle and ate fresh who traveled through Germany, Belgium and France shrimp right off the boat—I even tried whale…that was an before it was finally delivered. It won’t ever get used (I’m adventure! Our first visit was during summertime, and it too scared to break it), but I’ll cherish it forever. was light for about 23 hours a day. Our second trip was in
Banking Business a publication of Heritage Bank
ECOCHALLENGE Small steps lead to big change.
Employees teamed up for the first-ever Heritage Helps Ecochallenge where they turned intention into action for environmental and social good. Over the course of four weeks, they created new habits by selecting actions that complimented their lifestyle and passions—like reducing their carbon footprint, replacing a meal with meatless options, swapping to reusable drinkware and more! In just one month, 169 employees and 29 teams completed 4,354 actions, resulting in: • 10,027 gallons of water saved • 2,571 pounds of CO2 saved
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• 2,190 plastic items not sent to the landfill • 972 miles not traveled by car • 493 meatless or vegan meals consumed • 90 pounds of waste composted • 89 lightbulbs replaced • 77 pounds of paper saved You can join too! Visit ecochallenge.org for support and resources to transform behaviors at work, school and beyond. “This Ecochallenge was such a fun way to encourage everyone as a company to make a difference for the environment!”
FINANCIAL DICTIONARY Account Analysis
Account analysis is the preferred account type for billing treasury management customers. It’s a way for customers to best decision the use of their working capital, whether that’s using compensating balances to offset service charges, pay down credit facilities or to fund short-term investments. Analyzed accounts receive an earnings credit that is netted against analyzed fees that are due. If the earnings credit is more than the monthly service charges, there are no analyzed fees charged. If the earnings credit is less than the analyzed fees due, the difference will be charged to the account. In some cases, fees are not offset by the earnings credit (fee-based or non-compensable services) and are charged no matter the amount of earnings credit.
Accept Payments Anywhere with Converge from Elavon Converge is an all-in-one hosted commerce solution from Heritage Bank's partner, Elavon, that allows businesses of all types to accept payments quickly and securely wherever they take place. Accept everything from debit and credit cards to PayPal, electronic checks and digital wallets. Manage all payment activity easily and securely from anywhere with any browser-connected device. Accept payments using Converge’s friendly portal or integrate with your websites, accounting and CRM systems via easy-to-use developer tools. In addition to comprehensive payment capabilities, Converge helps you save time, improve cash flow and control processing costs with built-in productivity boosters. Customize buy buttons, payment pages and invoices with your brand to improve the customer experience. –
Card on file: Securely store customer profiles and card details for repeat, recurring and subscription payments.
–
Remote billing and invoicing: Email customers quotes and invoices and allow them to pay online with a simple click.
–
Credit card surcharge: Offset costs with our industryEqual Housing Lender | Member FDIC
compliant program that allows you to pass acceptance costs to customers. –
Level 3 processing: Lower interchange costs for business and government transactions by entering line-item details from invoices.
–
Product catalog: Speed up checkout and reduce staff keying errors by setting up a list of products and services including prices and descriptions.
–
Reporting and management: Easily generate standard or custom reports to view or export to accounting and management systems.
–
Administrative tools: Add employees and assign roles based on access rights.
Protect data, reduce fraud and simplify PCI DSS compliance validation with advanced security technologies including encryption, tokenization and online cardholder validation. Contact your relationship manager to learn more about how merchant services can help your business. HeritageBankNW.com
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Never miss a sale. LIMITED TIME OFFER Accepting all the payment types your customers want to use doesn’t need to be expensive or confusing. We partner with Elavon to offer your business a simple, cost-effective payment processing program. Ask us for details!
Ask us today to review your merchant services. If Elavon can’t meet or beat your current payment processing rates, we’ll give you a
$1,000
Visa® gift card.*
*If Elavon cannot meet or beat the customer’s current discount rate as supported by at least two consecutive processing statements dated within most recent previous six months and be from their current card processing service provider during the above-mentioned promotion period, then Elavon will award a $1,000 Visa gift card (limit one) per merchant, regardless of the number of business locations. Please allow six to eight weeks for receipt of your $1,000 Visa gift card. Other fees may apply. The gift card value may be reportable as taxable income, please consult your tax advisor. The following business types are excluded from this offer: existing Elavon Merchant Services customers, franchise locations under corporate pricing program, association members, warehouse pricing, Square pricing, government or not for profit pricing, petroleum and relationship pricing exceptions (i.e., below cost). Elavon compatible processing software/equipment is required. Business is subject to underwriting and approval by Elavon. Merchant must process a minimum of $10,000 annually in Visa and MasterCard credit card volume to be eligible for this promotional offer. Offer may be extended, modified or discontinued at any time without notice. Offer available only to merchants in the United States. © 2022 Elavon, Inc. Elavon is a registered trademark in the United States and/or other countries.
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