Pedal to the Metal Recycler (PMR) is an industrial metal dealer
that specializes in supplying mini-mills with surplus metal.
Scrap and surplus materials are sourced from Canadian and
US producers and manufacturing concerns and shipped to
customers located in the US Great Lakes basin.

Issue

PMR maintains a business account and lockbox with a US bank to collect and issue US items. Scotiabank provides the domestic banking services. Currently the treasurer telephones the US bank and Scotiabank and manually calculates their overall cash position. Large balances frequently sit idle in zero-interest US accounts.

Objective

Automate the treasury information collection and reporting, consolidate funds and improve the return on surplus Canadian and US Dollar balances.

Solutions

Using ScotiaConnect^® and the Global Reporting option, PMR can access information on their domestic and US account balances and transactions. Collecting information on US and Scotiabank accounts electronically will save the company over $3,400 and cut administrative time by 8.6 days annually.

By directing payments to a US Lockbox, provided by a Scotiabank global banking alliance partner they can streamline their collections and obtain consolidated balances electronically.

Using ScotiaWire^® to draw down surplus USD funds and
bring them back to Canada to earn credit interest or repay the domestic operating credit could result in an annual net benefit of over $100,000 CAD. Balance Management Services will automatically position funds between accounts to minimize the use of their operating line and avoid occasional overdrafts.