Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsSwitching BanksA good banking relationship is crucial to your business operation and, in manycases, the fi nancial survival of your business. Banks are vital to the financing ofyour business operation and a good relationship with your bank can help younegotiate better terms for your banking needs. Even if you are satisfi ed withthe service quality of your bank, you should still meet with your bank at leastonce a year to discuss your banking requirements and areas of improvementsin products and services that your business could use.If you are not happy with the service of your bank, you should review your bankaccounts and facilities. You should not move to another bank without comparingthe services provided by your current bank with that of the new provider.Many businesses split their banking between two or more fi nancial institutionsto have more control over their fi nancial arrangements. These businessesusually have one main bank provider who does most of their banking transactions.If you are dissatisfi ed with the pricing or service levels of your main provider,you should compare its offer with those of other banks.TIPMake a list of all the points and note the pros and consfor each point to help assess whether to refi nance148chapter 7-13 p79-181 Eng.indd 1488/15/11 5:03:07 PM