Reimagine Banking with Sergio Nascimento

Updated: Sep 11, 2023

May 22, 2023

Incredible Bank

Worked in BofA for 10 years - Now works for community bank

How You Get Paid

ACH (automatic clearing house): can pull back payment, pretty quick
CC (card processing): you can take cards, can delay money ( processing fee, you can charge client this fee so you don’t have to eat that cost)
Cash: Security
Check
- Cons: can get held, getting more checks building credibility and transfers easier
Apps (Venmo etc) – Security issues/ fraud, instant money
Wire transfers: foreign money, safest for the bank

How You Pay People

Same as how you get paid
Cash flow: debt service coverage ratio (DSCR) 1.25 (for every dollar you make, bank makes 1.25)
So if you get paid by check and pay your employees by ACH, you can have around 6 days of delayed cash flow.

Employees

Payroll
Make you money-Extension of you
Expansion
Write-offs
Cashflow- you need cash to pay employees (shows credibility to bank)
- Line of credit- can use to fill the gaps if you don’t have the money to pay
- Also can use a credit card

Future plans

When you sell your business, you have to show profit but also the buyer has to be approved for a loan. Bank needs to “like” both buyer and seller for sale to go through

The Triangle: CPA, lawyer and bank must be on the same page

Small Bankers

Credit

Credit Utilization- 35% ( Open 10 and just keep 8 open, buy small thing so they don’t close it, keeps accounts open so you have more buying power)
Age of Accounts- 15%
Payment History-30%
Types of Accounts- 10%
- Revolving credit (Line)
- installment loan (you pay it off eventually) – Mortgage/ car loan
Inquiry 10%

Continue payment on it, 15/3 rule. Pay it off right away.

Dispute Inquiries:

Savings: whenever, however

CD: locked funds, higher interest rate, 4.75

Sergio Nascimento

Market President, IncredibleBank

snascimento@incrediblebank.com

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