Key Takeaways
- • TriState Capital Bank has launched a national treasury management offering aimed at private credit lenders, asset-based lending (ABL) lenders and specialty finance companies.
- • The offering targets funding delays that arise when borrowers must restructure existing treasury arrangements to satisfy a new credit agreement, including the timely execution of deposit account control agreements (DACAs).
- • The product suite includes lockbox services, balance reporting, merchant and cash processing, ACH and wire services, remote deposit, information reporting and supply chain financing.
- • Borrowers receive an enhanced service model with a single point of contact for treasury management.
- • Dustin Goldstein, executive vice president of treasury management at TriState Capital Bank, said the bank saw an opportunity to work directly with lenders and borrowers to keep financing on schedule.
Summary
TriState Capital Bank has introduced a national treasury management offering designed for private credit and asset-based lending (ABL) lenders as well as specialty finance companies, according to the ABF Journal. The product addresses a recurring friction point in asset-based finance: funding can stall when a borrower's existing treasury arrangements must be restructured to comply with a new credit agreement.
The article reports that new credit agreements often require borrowers to repaper current treasury management arrangements, establish new account controls and give lenders greater control over funds and incoming receivables. Facilitating timely execution of deposit account control agreements (DACAs) is a central part of that process. Coordinating these changes and completing the required documentation can delay funding and affect a lender's ability to close a transaction on schedule.
The offering was developed in response to feedback from private credit and ABL lenders and their borrowers. Dustin Goldstein, executive vice president of treasury management at TriState Capital Bank, said lenders reported that funding is often delayed while borrowers' treasury arrangements are updated. He noted that these transactions are frequently time-sensitive and that the bank aimed to work directly with both parties to simplify implementation.
The package includes lockbox services, balance reporting, merchant processing, cash processing, ACH and wire services, remote deposit, information reporting and supply chain financing. Borrowers also gain an enhanced service model with a single point of contact for treasury management services. The article does not disclose financial terms or volumes associated with the launch.
The article reports that new credit agreements often require borrowers to repaper current treasury management arrangements, establish new account controls and give lenders greater control over funds and incoming receivables. Facilitating timely execution of deposit account control agreements (DACAs) is a central part of that process. Coordinating these changes and completing the required documentation can delay funding and affect a lender's ability to close a transaction on schedule.
The offering was developed in response to feedback from private credit and ABL lenders and their borrowers. Dustin Goldstein, executive vice president of treasury management at TriState Capital Bank, said lenders reported that funding is often delayed while borrowers' treasury arrangements are updated. He noted that these transactions are frequently time-sensitive and that the bank aimed to work directly with both parties to simplify implementation.
The package includes lockbox services, balance reporting, merchant processing, cash processing, ACH and wire services, remote deposit, information reporting and supply chain financing. Borrowers also gain an enhanced service model with a single point of contact for treasury management services. The article does not disclose financial terms or volumes associated with the launch.
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