Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsBanking ReviewYou can use the following checklist to help you review your bank accounts andfacilities:Item1. Create a listof all bankaccounts inyour company2. Obtain a letterof facilities3. Select your topthree preferredbanksDescriptionsYou should include what the account is used for; bankaccount details such as branch, account number,account name; and any special arrangements witheach account such as set-off arrangements. All socialaccounts, old companies, branch accounts, petty cashaccounts and special-purpose accounts should beincluded. This information can be obtained from yourbank statements or by asking your bank. You may besurprised at the number of accounts you have.Request a letter of facilities from all the banks you dealwith. The aim is to build a complete picture of all yourbanking arrangements with your fi nancial institutions.In your letter, you should ask your banks to ensure allfacilities are covered, including:• Credit or purchasing cards;• Merchant facilities;• Trade facilities;• Lease facilities;• Any information on loans that the bank provides;• Letter of credit;• Internet banking; and• Cheque cashing.How you select your top three preferred banks canbe based on any criteria, such as the bank you havethe most transactions with, the quality of their service,friendly staff, convenience, or pricing sensitivity.Knowing the existing or likely account manager (andhaving a favourable impression) is often a good reasonto include a bank in your list.149chapter 7-13 p79-181 Eng.indd 1498/15/11 5:03:07 PM