Bridgehampton Strategy Advisors has launched an initiative to assist Black-owned businesses to ensure greater success of obtaining working capital and other commercial banking services.
Los Angeles, CA — Historically, Black-owned businesses have had difficulty gaining access to adequate levels of working capital and other banking services. While there are several reasons for this disparity, a significant contributor has been limited knowledge of the client selection and onboarding processes banks practice to ensure they comply with all laws and regulations that govern client relationships. As banking regulations and disclosure requirements evolve, banks have increased their due diligence standards to stay ahead of regulatory changes, and to more clearly define their risk appetite.
One of the most important and major due diligence evolutions is Know Your Customer (KYC), which is the due diligence process that enables banks to fulfill their regulatory and legal obligations with respect to anti-money laundering and related financial crimes. Because of the serious threat to the US financial system and the impact money laundering and related crimes has on the US economy, banks are now required to gather much more information about their clients and how their products and services will be used before extending commercial credit, treasury management, merchant, and commercial credit card services.
It is critically important that Black-owned businesses are knowledgeable of the KYC process, and what documentation and information is expected of them when seeking banking services. In addition, understanding how information regarding ownership, operations, customers, vendors, and expected account transaction activity may impact the businesses risk profile is invaluable. This is particularly true for businesses considered to be high risk or that operate within high risk industries or geographies.
Bridgehampton Strategy Advisors’ initiative is focused on helping Black-owned businesses to strengthen their capital raising strategy and to gain greater access to advanced banking services by being KYC ready. The initiative will offer insight regarding what to expect from the KYC due diligence process and the steps necessary to take in preparation for delivering requested information and documentation. Reducing the risk of not being able to obtain higher levels of working capital and related banking services by being KYC ready should be a priority of every enterprise risk management strategy, which will ultimately have a significant positive impact on an organization’s product and service delivery, and their financial and operating results.
To learn more, please call (310) 487-3091 or visit their website at www.bridgehamptonstrategy.com. Be sure to tell them a little about your business and working capital raising challenges. The initial consultation and additional information is free.
PRESS CONTACT:
Mark Murdock
Bridgehampton Strategy Advisors
markmurdock@bridgehamptonstrategy.com
310-487-3091