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. He 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 learned that changing the address for a 30–year–old business was a huge hassle because he would physically 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 ICS® and CDARS®. The bank had educated him a few times about ICS and CDARS, 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 and asked to revisit the product.