Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsTransactional Banking to Suit Business NeedsTransactional banking is the everyday bankingrequirements that your business needs tooperate effectively. Primarily, this will includeboth deposit accounts and payment of servicesprovided by your bank or other financialinstitutions (e.g. credit union, building society).All businesses need to have some transactionalbanking services. There are essentially twotypes of transaction banking groups:• Transaction Banking• Merchant FacilitiesTransactionalbanking forms part ofthe overall financingof your business. Theeveryday bankingrequirements shouldbe consideredcarefully to ensurethat the paymentsin your business areefficient and effectiveTransactional Banking ProductsWhen deciding what type of transactionbanking products your business will need, it isimportant to look at the type of business youare offering to your customers, the requirementsfrom your suppliers and how you want tomanage your cash flow. Although manybusinesses believe that paying by chequeoffers a few extra days before the funds arewithdrawn from the bank account, in reality,HINTChoosing the mostappropriate transactionalbanking products will assistin managing cash flow andimproving profitabilitypaying by cheque provides a level of uncertainty because you cannot be surewhen the cheque will be presented.With many options available to business today, it is wise to ask your bankaccount manager to assist in choosing the right products that will help managecash fl ow and reduce the need for time spent in managing all your bankingrequirements.The list below provides the most common transaction banking productscurrently available:• Electronic Desktop / Internet Banking;• Credits to accounts – electronically, manually or by direct credit;103chapter 7-13 p79-181 Eng.indd 1038/15/11 5:02:58 PM