What is an Earning Credit?
We like to compare Earning Credits to frequent flyer miles from your bank! The more money you deposit, the more earning credits you’ll receive. Traditionally, these credits pay for bank fees, but if you have a surplus of these fees you can utilize them for services such as community management software. Unfortunately, some management companies don’t know these types of credits exist. Therefore, they aren’t utilizing their banks full potential of offerings.
Your business is worth more than you know!
Many management companies don’t realize that their bank deposits are more valuable than traditional deposits, such as from personal accounts or retail stores. That’s due to the fact that association reserves are very large and stable. Banks like the idea of this because they can lend out your deposits for a higher rate of return than other deposits. Thus, allowing you more leverage when choosing a bank.This also gives you the ability to utilize the excess of earning credits that your bank has rewarded you.
“My bank doesn’t offer Earning Credits…”
All banks off Earning Credits to remain competitive. Request competitive bids from other banks! Because banks are for-profit enterprises, they might not mention these options to you. Some banks do limit the overall promotion of these credits to keep more profits for the bank itself. You should be monitoring and analyzing your bank statements regularly to maximize your profits.
Use surplus Earning Credits to offset your costs.
Management companies produce enough Earning Credits to easily offset the cost of the services that the banks provide. The question then becomes, “What do we do with the extras?” It’s easy. Use your surplus Earning Credits to offset other costs of running your business such as:
- Paying for your community management software
- Offsetting statement and invoice printing costs
- Covering the cost of other payment related services
FRONSTEPS has many banking partners who want to help you maximize the potential of your business. Curious about your options and expanding your portfolio? Contact FRONTSTEPS today!