Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsTransactional FeesMost fi nancial institutions do not providetransactional services for free. In someinstances (particularly where your margins arevery small), the fees related to these servicescan substantially impact on the profi tabilityof your business. With so many fi nancialinstitutions providing these services, it wouldbe wise for you to consider the fee structurefrom a number of providers before decidingon the best provider (see the section on howto switch banks).HINTRegular review of yourtransactional bankingservices will guaranteethat you know how muchyou are paying for theseservices, and ensure thatyou are using transactionalservices that best suit yourbusinessIt is common knowledge that most SMEs do not know how much they are paying inbank fees. This can be attributed to the fact that they do not spend time reviewingthe transactional banking arrangements and some banks may not make it easy toclearly establish the total amount of fees being charged.TIPBy allocating all bank fees in a separate account, you would be able to clearlyidentify any increases in fees that could be affecting your profitability106chapter 7-13 p79-181 Eng.indd 1068/15/11 5:02:58 PM