U.S. Bank Targets Small Business Cash Flow Crunch

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Running a small business has never been simple. Owners often juggle thin margins, supply chain pressures, labor costs and rising interest rates — all while trying to keep an eye on cash flow.

The volatility of the macro environment makes the job harder, and so does the patchwork of digital tools many owners rely on for back-office tasks. “Banks are custodians of funds for small businesses,” said Shruti Patel, EVP and GM, chief product officer of business banking at U.S. Bank. “Our clients told us time and again they wanted a one-stop shop within their banking dashboard.”

Patel noted that nearly 8 out of 10 small businesses in recent surveys — including many noncustomers — expressed the need for a single platform that integrates bill pay, payroll and money movement with their bank accounts.

For the smallest firms, especially those with fewer than 10 employees, there’s the desire to manage bills, vendors, expenses and payroll from one place without stitching together third-party systems.

To that end, U.S. Bank announced two new solutions on Thursday (Sept. 4) that centralize oversight and visibility of cash flow and business functions to solve operational pain points. 

The new U.S. Bank Bill Pay for Business is integrated with business checking accounts, the tool lets owners automate vendor invoices, set up recurring or partial payments, and view real-time balances alongside upcoming obligations.

 “We allow small businesses to set up recurring payments, make partial payments, and track cash flow with complete transparency into their accounts,” Patel said. “Having everything in a single dashboard really helps them keep a tight eye on how they want to manage their monthly cash flow.”

Visibility and Flexibility

Transparency is a theme Patel emphasized at several points during her discussion with PYMNTS. Notifications alert owners when funds are running low or when payments clear, reducing surprises and missed deadlines. Integration with accounting platforms means invoices and expenses can be synced in one system.

“A lot of cash flow management functions such as payment status, availability of funds, payment due dates, and upcoming transactions like payrolls and bills—having them in a single dashboard really helps,” she explained.

U.S. Bank partnered with Fiserv and Melio to accelerate development of the offering. The Fiserv-Melio CashFlow Central infrastructure provided the modularity and customization U.S. Bank needed to tailor the product to its client base.

Payroll as Competitive Advantage

Alongside Bill Pay, U.S. Bank introduced an embedded payroll solution in partnership with Gusto. Payroll is among the most critical aspects of small business management — yet many owners still rely on separate, off-the-shelf software. Patel said her team heard from smaller firms that wanted payroll capabilities integrated directly into their online banking.

The new U.S. Bank Payroll product lets firms pay employees by ACH or check and run payroll as little as two days before payday. “The industry standard is four days, but with Gusto we can shorten that to two,” Patel said. “That means owners can hold onto their money longer, which is significant for businesses operating on thin margins.”

Tax compliance is also automated, reducing the risk of penalties as rules shift across states. “Gusto is constantly keeping pace with changing laws,” Patel said. “Small businesses don’t need to worry about that, because it will be taken care of in an automated way.” 

Read more: U.S. Bank Expands Suite of Embedded Payment Products

For employees, faster payroll means quicker access to funds. For employers, the flexibility to time payments more strategically can be a competitive advantage in retaining staff while managing liquidity. “It’s really a win-win,” Patel added.

Use Cases and Verticals

The initial adoption is expected in retail, services and wholesale manufacturing — sectors with steady vendor relationships and frequent payroll cycles. Patel sketched the example of a manufacturer juggling multiple suppliers: They can reconcile invoices from all vendors in one place, sync that information with accounting, set up payments and get real-time notifications if they’re running low on funds.

That kind of proactive management, rather than simply reacting to past statements, is what U.S. Bank hopes will resonate. Mobile access ensures owners can stay on top of finances whether in the office or on the go.

Building a Broader Ecosystem

The launches follow other recent U.S. Bank efforts like Business Essentials and Spend Management, which combined checking accounts with payment acceptance and expense control. Patel said the long-term roadmap will continue to extend this integrated approach.

“Some of the other critical jobs to be done are capital and accounts receivables — how do we help when clients are running low on cash flow, or when they need partial payments to be made?” she said.

The goal, Patel emphasized, is a holistic ecosystem where small businesses use their U.S. Bank checking account as the primary hub for all financial operations — from money movement to back-office automation.

“By bringing together our banking products, payment products and integrated software like accounts payables, cash flow management tools and payroll, we want to make sure we offer a one-stop shop within our banking software,” she said.

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