Automatic Collections Help Property Management Firm Grow
Collecting payments and making deposits at the right time is critical to any property management company’s success. To optimize cash flow, David Floyd and Associates Inc. decided to use remote deposit to save trips to the bank, collect homeowners association fees electronically and use online banking to view account balances and transfer funds.
Just when owner David Floyd Jr. was getting familiar with Pinnacle’s treasury management services, an amazing growth opportunity presented itself. Another local management company suddenly shut its doors, giving its homeowners associations about a week’s notice.
David Floyd and Associates Inc. took on the majority of the company’s properties, hired its three property managers and then set about transferring the new accounts from 15 homeowners associations.
“It was totally unexpected. Within a matter of weeks we picked up over a dozen not-for-profits,” Floyd said.
David Floyd and Associates Inc. had to transfer all of the accounts over without dropping the ball. Misapplied funds would have serious consequences for the homeowners associations—and his company’s reputation.
Floyd called his financial advisor, who set up a meeting that day with Pinnacle’s treasury management manager and Floyd’s team.
Pinnacle immediately started transferring accounts and getting Floyd the supplies he needed to manage the new properties.
“You can’t run a business if you can’t make deposits. Pinnacle put the accounts online so we could start scanning checks and depositing them immediately,” Floyd said. “We needed deposit slips and checks, and they started coming in by the boxes.”
Floyd said he was impressed with the quick turnaround.
“It saved us a hassle and made us look sharper when we went to our homeowners association boards,” he said. “When we told all of these boards we wanted to work with Pinnacle, we never received any negative feedback. They were already familiar with Pinnacle and liked the idea.”
Part of the reason was that Pinnacle is a local financial services firm.
“Unlike a lot of management companies that use lockbox systems or send payments somewhere else, residents like dealing with hometown companies who deal with hometown banks,” Floyd said. “It’s a big deal to our customers that problems are dealt with locally.”