Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEs• Debits to accounts – electronically, by manual cheque, Electronic FundsTransfer (EFT) or overseas transactions;• Overdraft and other limit facilities;TIP• Cheque production or cashing facilities; and Your banker can assistyou in choosing the most• Payroll processing arrangements.appropriate transactionalbanking products for yourbusinessMerchant FacilitiesMerchant facilities provide your customers with various options to pay by eithera credit or debit card. These facilities enable you to process payments madeon these cards either manually or electronically.Some of the benefits of having merchant facilities include:• guaranteed payment within 48 hours of the purchase made;• improved cash fl ow and thus business performance;• reduced exposure to keeping cash on your premises;• reduced administration costs (you no longer have to wait for a purchaseorder, issue paper invoices or chase payment);• no need for establishing accounts for one-off or infrequent transactions; and• environmental protection (by reducing the useof paper).When considering merchant facilities, it is best tospeak to your bank account manager to discussthe best facilities for your business. Some of thequestions to consider before meeting with yourbank are:HINTMerchant facilitiesprovide a real benefi t toyour business cashfl ow: your customersdo not necessarilyneed to have cash inthe bank to pay foryour goods or services104chapter 7-13 p79-181 Eng.indd 1048/15/11 5:02:58 PM