A business with 200 customers and 175 wineries sells to stores like Costco and Kroger, as well as independent wine shops. The owner of this 4th generation family business explains that the tradition has been to keep cash in the business over long periods of time and that he is averse to putting any of it “into the stock market.”
Consequently, his focus was on distributing cash across multiple accounts and did so by using multiple banks because he is always concerned about safety. Interestingly, it wasn’t until the company’s headquarters moved a couple of years ago that he questioned the practice. He found out that to change the address for a 30-year-old business was a huge hassle because he would have to go into ALL of the banks.
The local bank the family had done most of its business with over the years (main accounts) offered CDARS® and ICS®. The bank had educated him a few times about CDARS and ICS, but he had felt his money was secure, and didn’t really think about it. With the catalyst of the move, the president reached back out to the bank asked to revisit the services.