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Medulus
USA
6 Posts |
 Posted - 01/06/2004 : 11:35:30
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This topic may be dealt with elsewhere, but I couldn't find a forum on this subject -- so here goes... I would be interested in knowing how others resolve the problem of cash flow on the road. As people who work on the road, incurring large expenses in the process, we are particularly susceptible. I had a situation about four years ago where I was 600 miles from home with 13 cents in the bank by the time I got a check for $12,000 in my hand.
Here is the scenario. You are in a Cat location 1000 miles from home, working for a Cat company whose headquarters is neither in the state you live in nor the state you are working in. Payday arrives and since this is your first job in a couple months you don't have any reserves left. The Cat company mails your check on time. Five calendar days (three business days) later your check arrives at 3:00 PM. You have someone who can help you get it in the bank immediately, but because it is after 3:00 the deposit is posted to the next day. The bank sees that it is an out of state check and puts a hold of 5 business days (it can be as much as 10 days)on it. Five business days equals seven calendar days because most of us need to live in the weekend as well. Finally, 13 days after payday the funds become available to you. The next day is payday again and the process starts all over again.
There was a time in the not-too-distant past when many banks were local and you could take the check to a teller you knew by name and tell them this was your commission check and the teller would smile and make the funds immediately available. However, that local bank has probably been merged with a conglomerate of others who treat everyone with the least common denominator of customer service -- No Exceptions ("If we make an exception for one person, we would have to do it for everyone.") These local banks are getting harder and harder to find. People flock to them to obtain the service they cannot get elsewhere. They grow quickly and soon catch the eye of a large merged banking conglomerate and are bought out by the larger bank, ultimately becoming just as impersonal as the rest.
There are some obvious solutions: Work for only companies who have direct deposit. I have worked for a few of these companies and it is nice to get paid on payday. But it is not terribly realistic to think that we can pick and choose our assignments, excluding any who would pay us with a check. Banks are fond of telling us, by the way, that we would have had our funds available if we had only had them direct deposited. I am fond of telling them that it would be equally nice if I could have actually gone into the past as they suggest and not deposited the money in their bank in the first place or if I controlled how a particular company chooses to pay me.
I suppose one could also decide only to work in their home state, but this is not realistic for most of us either.
Another thing I've noticed is that often a deposit made in an ATM will be available within 48 hours whereas a deposit made at the tellers window will be available one to two weeks after the deposit is made. This can't be counted on, however. I recently had a bank go out of their way to provide me with substandard service, sending me a letter informing me in writing that they were placing a 5 business day hold on the check because it was an out of state check.
I would be interested in how others resolve the problem of cash flow. There might also be a story or two out there that should be told about cash flow problems. What I'm really looking for, is creative solutions to getting our money in the bank and available for use. |
Steve Ebner |
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JimF
USA
1014 Posts |
Posted - 01/06/2004 : 12:01:48
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Steve, here are some ideas for you to consider:
(1) Find one of the mega-banks which you mention and open an account there. Find one with multi-state banking locations. I use BB&T and when I deposit a check into my account there, no matter which state I am working in when I make the deposit, I am given credit for the check the next day (if deposited before 2 PM) and can receive cash instantly against a deposit I am making if they have a branch in whatever distant town/state I am working.
(2) Many vendors will make arrangements with a local bank in the town where a storm occurs to cash your check, even though the vendor may have their home offices in another state. Ask the vendor if they have such an arrangement or if they can set one up.
(3) Develop a better relationship with your own bank back at home, and let them know the nuances of what you do, and how and when you get paid on storm. Then when you do get paid, you can always "Fed-Ex" your paycheck back to a 'person' back at your hometown bank, and generally they will provide next day access to your funds. It doesn't hurt especially if you are working for the same vendor on a regular basis, which the bank becomes familiar with as you make regular deposits.
(4) Consider setting up or increasing a line of credit, even if it means some form of collateralization such as an equity loan on your home, in the event it is needed for 'emergencies' while you are working afar. Even an increase in your credit line on a credit card or acquisition of a new card, can provide check writing or ATM cash privileges at banks away from home.
(5) Determine by asking if the vendor you work with can or will provide 'advances' against your future billing to tide you over until the cash flow cow is up and running.
(6) Do a yearly check of your credit report to make sure there are no errors on your credit report which may be causing credit problems of which you are unaware. If there are legitimate credit problems on your report, consult with a credit counselor and clean up your report to provide credit in the future.
(7) Watch your spending while on storm and establish a 'budget' which you closely monitor to insure that you meet your financial obligations and goals.
(8) If all else fails, when you get down to your last dollar, buy a lottery ticket and pray you win.
(9) Always remember you can generally eat off the Red Cross truck during a major catastrophe and you can always double up on sharing a room with another adjuster to lower your on the road expenses until the cash flows start flowing.
(10) Finally, as most cat adjusters are part of one big family while on the road, more than a few times I have seen adjusters come to the aid and assistance of another adjuster having a cash flow problem, by making small loans until 'payday.' It never hurts to ask and you can always email your adjuster friends if you ever get in a bind again if you're out working an assignment all alone. We can always 'wire' you some money.
Steve, hope this helps and welcome back to CADO and to cat adjusting. You have been missed! |
Edited by - JimF on 01/07/2004 04:47:07 |
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Medulus
USA
6 Posts |
Posted - 01/06/2004 : 12:41:41
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Jim,
I should have known an old dog like you would have a few tricks. And thanks for the specific bank reference. I have found banks increasingly tell me that there is nothing they can do about it when I explain how my business operates and how important it is to have funds available when needed. So far, (can you see me crossing my fingers?) I have never actually run out of money on the road, but it has been uncomfortably close.
Some of your ideas seem like they would work for me, others might be more appropriate for others, but thank you for the thoughtful response. And it is very good to be back on the road after my two years on staff here in Michigan. Some of us just chafe at working for a salary. |
Steve Ebner |
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Amber
USA
23 Posts |
Posted - 01/06/2004 : 13:06:41
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I live by rule #3 in Jim's post. My "road account" is at one of those national banks. When I opened my account I went into my local office and requested to speak with the branch manager. I told the manager a bit about what I do and that I only want to deal with him on my banking concerns. He said fine and from there I've basically forged a working relationship this person. Anytime I need something done for my account I call or go see him. A year or so ago when I was on the road I had my (out of state) check mailed to a friend's house & she deposited it for me. I called the branch manager & he instantly released the hold & made all of my funds available. (Thankfully ATM's work everywhere!)
And a side bonus, the name/face recognition when I walk into the branch office where no one really knows anyone is kind of nice. |
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Johnd
USA
110 Posts |
Posted - 01/06/2004 : 17:15:10
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Steve:
One trick I used, in addition to Jim's post above outlining using a mega-bank, was to open an account with Merrill Lynch (CMA Account) and making a deposit into that account. ML is very good about clearing almost immediately, and the CMA account has check writing privledges. ML is to be found in almost all towns of any size in the USA. Besides, they pay a small interest rate on all your account balances.
I have also had good luck with Wells Fargo as a megabank and have found that using the ATM, I can usually have 1/2 the funds available immediately. Wells Fargo is definitely NOT the bank to use if you want to bank by mail, have had deposits lost or misplaced by them for 30 days when I mailed them into Wells. Hope this helps.
John |
John Durham
sui cuique fingunt fortunam |
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JimF
USA
1014 Posts |
Posted - 01/06/2004 : 19:38:55
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John, thanks for reminding me of CMA accounts, which I also use, although through Charles Schwab. As John mentions, they will provide check writing privileges and most will also offer a debit card towards your account balance. John is correct as well that ML and many others can generally be found in or near almost any town in America. One of the benefits of using a CMA account is that you generally can write checks or debit against stocks in these accounts even if there is little cash up to 50% of the value of listed stocks.
If you're cash strapped prior to leaving home, you can also borrow against cash values of whole life insurance policies if you have one.
When I Fed Ex a check back home I have it sent to one of the bank account representatives at my bank with whom I have developed a working relationship, and not only do they mail a deposit ticket to my home address, but I can check to make sure the deposit has been made by checking my account balance at almost any ATM anywhere. |
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ChuckDeaton
USA
373 Posts |
Posted - 01/06/2004 : 23:30:57
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Nothing like friends, not banks, not credit cards, not ATM's, need help, be a friend. Need money, need a starter, need a truck, need a computer, need a Disto, need help with Xactimate, need a job, be a dependable friend. Help somebody and somebody will help you.
Linda, Jim, Jerry, Kim, Ron, Wally, Louise, Dave, Mike, Cecil, Melissa, James, Julie, Pam, Jerome, Roy, Ray, THANKS!
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JimF
USA
1014 Posts |
Posted - 01/07/2004 : 04:28:53
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Chuck you're absolutely right. Nothing even comes close to having a friend or being a friend in this profession and more so when any of us are on the road.
One of the best things we can do for ourselves and each other as friends, is to make a contribution to the CADO Fund, which will allow us to help those cat adjusters who fall or are fallen while out on assignment.
Illness, tragedy and death can strike any of us and at any time, and it is comforting to know that a collective community response through the CADO Fund can respond more quickly and powerfully by working together to help provide a safety net for our fellow adjusters.
Think of the difference we can make working together through the CADO Fund. Ask yourself what would happen should something unexpected happen to you: should you get sick or be involved in an accident, or your family needs help in their greatest hour of need due to your unexpected death. Roy has enabled us through the CADO Fund to finally be able to make a difference in the lives of others.
I challenge each adjuster and every vendor to check out the CADO Fund and to make a donation as soon as possible so we can help our friends in their greatest time of need. Give what ever you can no matter how small the donation.
Make a difference and be a friend. Donate to the CADO Fund today.
Search your soul. Be a friend. Don't put off making your CADO Fund donation one more day. Do it now. You'll feel a whole lot better about things.
http://www.catadjuster.org/fund.asp |
Edited by - JimF on 01/07/2004 04:41:24 |
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345
USA
28 Posts |
Posted - 01/07/2004 : 09:38:59
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| A MasterCard and Visa cards with high credit limits can be invaluable. Charge office supplies, gasoline, motel, auto repairs, and get cash advances while on road. The bill comes at end of month, and if still on road and have not received paycheck, send a check for minimum payment amount, and pay balance after you get home and paid. This will help smooth out cash flow problems. |
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TomS
USA
32 Posts |
Posted - 01/07/2004 : 10:07:26
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Well, fellows, ole Jim has done it again, his knowledge of claims service as well as immediate needs while on the road again has surprised me. Maybe this ought to go into adjuster 101 or 102 or is it 103. believe it or not, I re-read 101 prior to a road trip each and every time, to remember what forgot the last time.
One of the last resorts for paycheck cashing is one of those cash check places, but you give up a few dollars, however, you get your money right fast, i had to do that in panama city one time, however, it was due to unforseen reasons with bank and all, but hell, it worked and i had instant money.
good luck fellow for 2004 and bring in the bucks with the coming storms.
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Medulus
USA
6 Posts |
Posted - 01/07/2004 : 10:15:36
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So far I see a lot of great ideas, a few I have used in my quest to get creative while keeping the cash flowing. Chuck, your post makes me chuckle because it's so true. The experience I referred to previously where I found myself with thirteen cents I could put my hands on and a check for $12,000 that I couldn't spend yet was resolved by calling a friend who took $200 out of his account and depositing it in mine. I sent him a check that he forgot to cash for two months. He got in trouble with his spouse for forgetting to deposit my check.
Neither BB&T nor Wells Fargo are available locally in Kalamazoo, MI, but I have been interviewing banks to see who can work with me since before I started this forum. Some of the other suggestions I've seen here are very helpful as well. Considering the problem it has been to keep the cash flowing and the amount of time my spouse and I have spent on the phone and in person with bank personnel, I think I should have broached this topic with the Cat community long ago.
I should also say that I had very good experience with Northwest Savings Bank in Pennsylvania when I finally found them. They are decidedly not a mega-bank, but the service was stellar. Since I no longer live in Pennsylvania they are not a viable option for me now.
Thank you all for your suggestions to date. |
Steve Ebner |
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ChuckDeaton
USA
373 Posts |
Posted - 01/07/2004 : 10:24:26
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| Steve, I traveled while working Isabel and when I came back to base my rent was due, I was staying in a cheap place and had to pay my rent by credit card. When I reached for my primary card I realized that I had left it at the prior nights lodgingin Tappahannock. Then the clerk noticed that my secondary card had expired. It was one of those places with electronic computer controlled door locks and my time was going to expire at 12 O'clock. I am not going to thank the whole list again, they are all contributors here and know will recognize their names, but Jim Davidson saved my bacon. Thanks Jim. |
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ChuckDeaton
USA
373 Posts |
Posted - 01/07/2004 : 10:28:47
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| JimF, 345 makes a good suggestion and if I have your permission I will add your comments to a road finance section of Cat 102. |
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JimF
USA
1014 Posts |
Posted - 01/07/2004 : 11:50:20
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Chuck, by all means feel free to use (and edit) my comments as you see fit, as you offer the finest "How To" resource information available to any and all of our adjusters.
And for those of you who have not read Chuck's CAT 101 and CAT 102, email him for a free copy. It's outstanding and informative and no one should be without a copy.
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Gale
USA
231 Posts |
Posted - 01/07/2004 : 23:13:56
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| Last night I was talking to a CAT adjuster that stays on the road a lot but he writes appraisals in his home area for some firm during his down time. He said he simply had to scope the damage and write the estimate and he was finished and got paid. |
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Keeping the Cash Flow
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