A treasury management services agreement is a contract between a financial institution and a business that outlines the terms of the financial services provided. These services typically include cash management, investment management, and risk management.
Cash management services may include services such as online banking, wire transfers, and ACH transfers. These services help businesses manage their cash flow and ensure that they have the necessary funds on hand to meet their obligations.
Investment management services may include services such as investment advice, portfolio management, and investment research. These services help businesses manage their investment portfolios and maximize their returns.
Risk management services may include services such as risk assessment, insurance, and hedging strategies. These services help businesses manage their risks and protect themselves from potential losses.
The treasury management services agreement will typically outline the fees associated with these services, as well as any other terms and conditions of the agreement. It is important for businesses to carefully review this agreement before signing it to ensure that they fully understand the services being provided, as well as the costs and risks involved.
In addition to the services provided by the financial institution, the treasury management services agreement may also include provisions relating to security and fraud prevention. This may include requirements for secure login credentials, transaction limits, and fraud monitoring and reporting.
Businesses should also be aware that there may be regulatory compliance requirements associated with these services. For example, businesses may need to comply with anti-money laundering regulations, know your customer regulations, and other regulatory requirements.
Overall, a treasury management services agreement is an important document for businesses that are looking to manage their cash flow, investments, and risks. By carefully reviewing the terms and conditions of this agreement, businesses can ensure that they are getting the services they need at a fair price, while also protecting themselves from potential risks and losses.