Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsItem4. Meet withyour currentbankDescriptionsOnce you have gathered the required information, youare ready to meet your bank. The aim here is to giveyour existing bank fi rst chance of improving the price orservice or any other criteria you have noted in step 2.When the bank has all your information, ask your bankerwhat will be the best package and fees available foryou. Usually, a bank will give you its best rates whenyou agree to do all transactional banking arrangementsthrough them.5. Review yourcurrent bank’sofferThe areas you should be reviewing are loan fees,interest margins, merchant facilities, and cash handling,if you are in a retail business or organisation. However,this will vary according to your business.If your current bank offers you improved pricing andservice levels, you may wish to stay with your currentbank and stop the review process. We recommendthat you ask your bank to detail a letter of agreementincluding the renegotiated fees, charges and servicelevels offered. If possible, negotiate for these revisedterms to apply for one to three years. If your bank doesnot offer a better deal in pricing, you should fi nd out whyand what is missing from the picture.6. Meet withalternativebanks onyour listIf you are not happy with your current bank’s offer, makean appointment with the next bank on your preferredbank list. If you disclose your current pricing, thesecond bank may only offer you a deal that is slightlybetter than that of your current bank. Due to the costand resources required to move to a new bank, it isgenerally not advisable to move banks unless the newbank offers substantially better pricing, product orservice.150chapter 7-13 p79-181 Eng.indd 1508/15/11 5:03:07 PM