How is the Dallas business landscape evolving?
A number of businesses have migrated to Texas due to lower cost of living for employees, access to new, top talent, and ease of travel around the U.S. given Dallas’ central location. This has resulted in a continually growing population in the Dallas-Fort Worth area, bringing our city to the forefront as businesses consider expansion opportunities.
How are your business clients reacting to the current environment?
Many of our clients remain optimistic, even in the face of economic uncertainty. Texas—and Dallas specifically—is experiencing a lot of growth, so there’s a feeling that the market is more insulated than others from the full impacts of a potential recession.
What are some of the items you’re advising clients on?
Financial forecasting and modeling
Financial forecasting is more important than ever. This strategic process enables businesses to forecast how their company will perform in the future based on current data and quantifiable changes to their business models. Establishing a forecast not only helps clients gain a better understanding of what’s ahead, but it is also a healthy practice to aid in building and maintaining a growth mindset—even in challenging times. I would encourage business owners to continually stress their projections as rates continue to rise.
Cash and liquidity
One area that has been top-of-mind for many business leaders is cash and liquidity. Businesses worked tirelessly to survive the impacts of the pandemic and are now facing interest rate challenges, inflation and more. As they wade through these, we’re advising clients to be proactive with their finances when it comes to expense reduction and cash generation.
While not new, we’re having many discussions around our payables solutions, specifically virtual card. The spending power and quick access to funds, rebates and rewards are very attractive for companies – especially in volatile economic times. As businesses continue to scrutinize their cash flow, the “float” period between credit card purchases and paying the statement balance can provide helpful and, in some cases, critical flexibility.
How does UMB plan to approach the new year?
Our theme for 2024 is growth. It may seem counterintuitive given the current state of the economy; however, as a 110-year-old-bank, we’ve experienced many periods of uncertainty and are prepared for all economic environments. We have some exceptionally talented bankers at UMB in DFW, and we would like to continue adding to our almost 100 local associates. To support this, we’re bolstering both our downtown Dallas and Plano middle market teams.
Final thoughts?
Last, but certainly not least, the lending environment in Texas remains strong. A client recently described UMB as having a “get it done” attitude, and I think that perfectly embodies our culture and drive to continue helping businesses in the Metroplex. Our commitment to this market is substantial and continues to grow, and I’m excited for what’s ahead.
For more information about UMB Bank visit the website.
