Simmons First's Controlled Disbursement service provides your cash manager with a timely and accurate notification of your daily disbursement totals. Forecasting check clearings and providing extra cash as a buffer will no longer be necessary.
The Controlled Disbursement system matches the daily funding of disbursements with the day these checks are presented for payment, freeing up excess funds for overnight investment and minimizing borrowing needs. Check totals and detail are available before 10:00 a.m. CT and are easily accessible through Simmons First Bank Anywhere.
The Way It Works
- In the normal course of paying suppliers, your company issues checks to the suppliers.
- A supplier deposits the check at its bank, which will forward the check to Federal Reserve Bank.
- Each day in the early morning hours, Simmons First retrieves the items from the Federal Reserve Bank.
- Simmons First sorts the Controlled Disbursement items by account number. Total checks paid for your company as well as other Controlled Disbursement customers are then accumulated for reporting and posting purposes. No other checks should clear that day except in the unlikely event that a check is presented over-the-counter for cash.
- The exact dollar amount needed to fund the Controlled Disbursement account is funded through a zero balance structure of accounts. Additional funding methods may include wire and ACH funding, advance from a line of credit, or a transfer between accounts at Simmons First.
- By 10:00 a.m. CT each day, the exact dollar amount of the checks presented for payment that day is available. Bank balances, previously maintained because of the uncertainty of when checks clear, are now available for reducing short-term borrowings and/or increasing purchases or investments.
- With a zero balance structure of accounts, the disbursement account automatically funds from the master or concentration account. No further manual transfers are required.
Simmons First Bank Anywhere or Simmons First Access allows you to access your controlled disbursement information anytime after 10:00 a.m. CT.
- The treasury duties of estimating the company's cash position and moving money will be simplified.
to request more information on Simmons First Cash Management services.