banking - Common Small Business Frauds & Suggested Controls

Small businesses are the most vulnerable to some form of employee fraud as they usually place trust in one or two people and therefore have fewer accounting and other internal controls. The festive and holiday period is typically the time of year when many frauds occur as business owners often hand over control of various tasks to more junior or temporary staff and they become less careful about monitoring procedures. Statistically the most likely person to commit a fraud such as embezzling money is a long standing and trusted employee. Business owners can protect themselves by developing reliable accounting and other internal controls and constantly monitoring the effectiveness of these controls. The most common frauds that are committed by employees including some appropriate controls that should be put in place include: THEFT OF MONEY Frauds that involve money can be very costly for small businesses and in some cases can lead to the closure of the business. Examples include stealing cheques sent by debtors directly from the mail, forging an endorsement on a cheque, stealing cash from the till, and falsifying signatories and amounts on cheques issued by the business. Suggested Controls * Separation and rotation of duties between cash/cheque handling, preparing the banking records and recording in the general ledger. * Having at least two persons sign all cheques. * Performing regular bank reconciliations. * Regular observation of employees handling cash or receipting debtors. * Issuing pre-numbered receipts for all monies collected and recorded in the debtors ledger. This notifies the customer that their money has been received and recorded. * Daily banking of cash and cheques and prompt recording of transactions in the accounting records. ELECTRONIC BANKING FRAUD Electronic banking is used increasingly by businesses for payroll, supplier payments and transfers of funds between bank accounts. Whilst this is a more efficient way of dealing with these types of banking transactions business owners often fail to implement appropriate safeguards. Banks will not reimburse businesses from losses arising out of electronic banking fraud where the business has contravened certain conditions (e.g. not keeping the password in a safe location). Suggested Controls * Having at least two persons approve all payments and transfers. * Maintaining security over passwords (i.e. ensuring that they are input without others observing, are not written down and are changed regularly). * Setting appropriate limits on the dollar value of transactions. * Confirming security arrangements with the bank on a regular basis. * Ensuring that bank authorities of terminated employees are removed immediately. * Installing virus and firewall protection to reduce the risk of access by third parties. * Ensuring that staff immediately delete any unsolicited or spam emails that request the banking details of the business. PAYROLL FRAUD This is common where employees are not paid the same amount each week (e.g. shift workers and temporary staff) and the amount paid is calculated on some factor such as the number of hours work units produced, or the volume of sales. Common techniques include extending the number of hours worked and type of work done on time sheets, manipulating the clocking on and off times where a time clock is used and artificially increasing sales on which commissions are paid. Other common payroll frauds include inserting ghost employees on the payroll and where employees lie about their experience and qualifications Suggested Controls * Review and authorisation of time sheets and clock on and off times by a supervisor and/or manager. * Requiring all overtime to be authorised in writing beforehand. * Separation and rotation of duties between employees paying wages and recording in the payroll ledger. * Paying employees by cheque or direct deposit into specific accounts as this can be easily traced in the event that a fraud is uncovered. * Obtain independent verification of the qualifications of employees, check their references and confirm their experience from previous employers. * Conduct regular performance reviews personally on all employees that are listed on the payroll register. THEFT OF STOCK This fraud involves the theft of physical assets (e.g. stock and plant & equipment) from the business and usually occurs where there are large numbers of small inventory items. Examples include false write-off of stock in the accounting records, altering the stock-take records, and falsifying purchase orders or invoices to reflect the stock stolen. Suggested Controls * Limit access to stock and items of plant by physical security particularly after hours. * Independent authorisation of stock write-offs or scrapping of inventory items. * Purchase orders crosschecked to the invoice and appropriately authorised. * Separation and rotation of duties in the ordering, receiving and recording areas. * Conducting proper and regular stock takes using pre-numbered stock sheets. BILLING SCHEMES These schemes attack the payments system of the business and occur as most payments are made by cheque so there is limited scope to steal cash. A typical billing scheme involves the person creating a false purchase invoice from a fictitious business, or an accomplice business and then having this false invoice approved and paid. Suggested Controls * Separation and rotation of duties between the person making the purchase orders and submitting the orders for payment, the person preparing the cheques and banking journals and the person recording the transactions in the accounting records. * Invoices approved by one person and that person should not draw the cheques or have the authority to order goods or services. * Using pre-approved suppliers limits the opportunity of using a fictitious business to conduct the fraud. Any invoice from a supplier that is not pre-approved should be verified before payment is made. FALSE EXPENSE CLAIMS These frauds involve the person inflating expense claims, making false or multiple claims for the one expense, or claiming a personal expense as a business expense. Whilst the amounts are usually so small to be noticed individually they should not be regarded as insignificant as they can have a large cumulative effect on the business. Suggested Controls * Require employees to submit detailed expense reimbursement requests including original receipts and supporting documentation and provide proof that the claim is for business purposes. * Authorisation of expenditure reimbursements claims by the employee's supervisor or manager before it is submitted for reimbursement. * Randomly checking expenditure directly with the supplier and verifying the invoice and payment. Joe Kaleb is a chartered accountant in Australia and CEO of http://www.australianbiz.com.au a website that provides tax, management tools and other services to small business owners. Article Source:http://EzineArticles.com/?expert=Joe_Kaleb banking - Money is Not the Root of All Evil, But Our Money Consigns Us Straight to Hell! If you thought your taxes went towards funding important government services, you are dead wrong! A new understanding of the world banking system reveals the very nasty purposes of taxation, which is to gift the banks a monopoly on the creation of new interest-bearing debt. Once government has stolen from us through taxation, we are forced to replace that stolen liquidity with high interest-bearing debt. With this insight, increased poverty, social and economic polarization, destruction of environment, strangulation of constitutional rights, and rapidly increasing debt are seen to be unavoidable and inevitable under the present tax/banking system. We desperately need a change! The money supply (m3) has increased 1000% since 1996. Not a single dollar of this new money has been issued by government. Every dollar, Yen, Peso, Rupee, Franc, and Deutchmark has been created out of thin air by the banks, and then loaned to you and I as interest-bearing debt. Not only do taxes remove huge liquidity from the private sector-artificially raising interest rates-but when private funds are invested in government loans and securities, they are no longer available to the private sector at low interest. And because a very large part of tax revenue (and banking debt) is sourced from consumptive activities and consumer borrowing, the government then ends up consuming resources that do not exist. Only a portion of the tax take actually represents savings and surplus; and only a portion of the new debt/money that is issued by the banks is secured by new wealth creation. This is why we continue to experience an inflationay spiral that can only end in recession, depression, and/or economic collapse. Our Govt. is totally dependent upon, and subservient to, the banking system; and so are most private citizens. Aside from our obvious loss of financial independence, freedom, and opportunity, there is an even more frightening aspect to the present tax/banking system. As tax destroys the incentive to earn, save, and invest, and govt. continues to fund itself in an unsustainable way, more and more of our environmental resources are consumed each passing day. Civilization trembles in the face of an approaching environmental apocalypse not because of carbon emissions, greenhouse gases, or population growth; but because of taxation. The present tax system destroys the incentives for, and the results of, all our own efforts at positive creativity. To find out more about how taxes are linked to a banking conspiracy, social chaos, and environmental destruction, go to www.truthaboutax.com and/or read "The Zen of No Tax".

banking - Money is Not the Root of All Evil, But Our Money Consigns Us Straight to Hell!

If you thought your taxes went towards funding important government services, you are dead wrong! A new understanding of the world banking system reveals the very nasty purposes of taxation, which is to gift the banks a monopoly on the creation of new interest-bearing debt. Once government has stolen from us through taxation, we are forced to replace that stolen liquidity with high interest-bearing debt. With this insight, increased poverty, social and economic polarization, destruction of environment, strangulation of constitutional rights, and rapidly increasing debt are seen to be unavoidable and inevitable under the present tax/banking system. We desperately need a change! The money supply (m3) has increased 1000% since 1996. Not a single dollar of this new money has been issued by government. Every dollar, Yen, Peso, Rupee, Franc, and Deutchmark has been created out of thin air by the banks, and then loaned to you and I as interest-bearing debt. Not only do taxes remove huge liquidity from the private sector-artificially raising interest rates-but when private funds are invested in government loans and securities, they are no longer available to the private sector at low interest. And because a very large part of tax revenue (and banking debt) is sourced from consumptive activities and consumer borrowing, the government then ends up consuming resources that do not exist. Only a portion of the tax take actually represents savings and surplus; and only a portion of the new debt/money that is issued by the banks is secured by new wealth creation. This is why we continue to experience an inflationay spiral that can only end in recession, depression, and/or economic collapse. Our Govt. is totally dependent upon, and subservient to, the banking system; and so are most private citizens. Aside from our obvious loss of financial independence, freedom, and opportunity, there is an even more frightening aspect to the present tax/banking system. As tax destroys the incentive to earn, save, and invest, and govt. continues to fund itself in an unsustainable way, more and more of our environmental resources are consumed each passing day. Civilization trembles in the face of an approaching environmental apocalypse not because of carbon emissions, greenhouse gases, or population growth; but because of taxation. The present tax system destroys the incentives for, and the results of, all our own efforts at positive creativity. To find out more about how taxes are linked to a banking conspiracy, social chaos, and environmental destruction, go to www.truthaboutax.com and/or read "The Zen of No Tax". Ex pat American Carl Peterson has gathered experience in the most unlikely of places. Two years in a British Columbian "religious" commune in the early 70's introduced Peterson to his present personal spirituality based upon meditation, acceptance, and action. He then spent 13 years on his remote 500 acre Fiji jungle plantation until rudely interrupted by the Fiji military coup of 1987. Speaking out against the apartheid regime that followed cost Carl several stints in jail, and finally a kidnapping and brutal assault by armed Fijian soldiers. Peterson migrated to New Zealand as a refugee, quickly invented the Peterson Portable Sawmill, and founded a company manufacturing the original product. The Peterson mill is held in high esteem within the industry. In New Zealand, Peterson has taken on the Court system there, recently winning a landmark patent case in the New Zealand Supreme Court. A man for all seasons, he brings an open, articulate and enquiring mind to whatever venture he undertakes, often going where no man has gone before. Article Source:http://EzineArticles.com/?expert=Carl_Peterson banking - A Guide to Opening a Bank Account in Tenerife Opening a bank account in Tenerife is relatively straightforward nowadays and shouldn't take more than 10 minutes. You may want to consider what your account is for before heading off into the first bank you see. The mortgage rate and hence the savings rates are quite low on the island and so you may need to consider alternative options if you are looking for high interest accounts. Another obvious consideration may be the fact that you may need to open an account in a branch where you know they can speak English if you haven't yet mastered the Spanish language - so shop around until you can find the right branch. Other considerations may include internet banking if you want to manage your account via the internet perhaps if you return to the UK/Europe regularly. The actual opening process is very quick - we opened our first account in less than 10 minutes at our local branch of La Caixa in Las Americas way back in 1994. You will need to take with you your passport and NIE number if you have one. You can still open an account without your NIE but you won't be able to apply for a mortgage without one or at least without having put the application in process. Thats it! If you intend to open a business account - you will also need to take with you the CIF number, the actual original document and a copy of the Company Simple (company formation contract) if you have a limited company.

banking - A Guide to Opening a Bank Account in Tenerife

Opening a bank account in Tenerife is relatively straightforward nowadays and shouldn't take more than 10 minutes. You may want to consider what your account is for before heading off into the first bank you see. The mortgage rate and hence the savings rates are quite low on the island and so you may need to consider alternative options if you are looking for high interest accounts. Another obvious consideration may be the fact that you may need to open an account in a branch where you know they can speak English if you haven't yet mastered the Spanish language - so shop around until you can find the right branch. Other considerations may include internet banking if you want to manage your account via the internet perhaps if you return to the UK/Europe regularly. The actual opening process is very quick - we opened our first account in less than 10 minutes at our local branch of La Caixa in Las Americas way back in 1994. You will need to take with you your passport and NIE number if you have one. You can still open an account without your NIE but you won't be able to apply for a mortgage without one or at least without having put the application in process. Thats it! If you intend to open a business account - you will also need to take with you the CIF number, the actual original document and a copy of the Company Simple (company formation contract) if you have a limited company. Les Calvert runs more than 350 websites on living and working abroad including buying overseas property in more than 46 countries abroad. Check out their main site for more useful info http://www.property-abroad.com Article Source:http://EzineArticles.com/?expert=Les_Calvert banking - Is Online Banking Safe? Online banking has come of age. The security systems are very high and the transactions are done through secured socket layer. The bank security is rarely breached. The main problem with online banking is the computer at home, office or cyber caf' where the transaction is done online. Computers can be easily hacked and the passwords can be stolen by professional hackers. Computers with Windows software are vulnerable. If a hacker breaches your computer's security he can easily login to your internet banking account and misuse it. The bank won't be able to find whether you are using the computer or somebody else. It is necessary that your computer should be safe and it should have firewall and antivirus software installed in it. In most offices the security is very high and you won't be able to download any software, songs etc. If you can't download software etc to your computer then it is regarded as a safe place to transact online. Also, changing your password regularly is recommended. It is advised not to login to your online account from cyber caf's quite often as hackers can easily capture your user id and password. If you access your online banking account from cyber caf's then it is advised to change your password as soon as you can. Never open an email, whose source you do not know. These emails could have virus, spyware or website links. Nowadays, there are many websites designed to look like banking websites. When you use your user id and password, it will capture it. These kinds of websites have started flourishing. This is called as phishing. So never open an unsolicited email.

banking - Is Online Banking Safe?

Online banking has come of age. The security systems are very high and the transactions are done through secured socket layer. The bank security is rarely breached. The main problem with online banking is the computer at home, office or cyber caf' where the transaction is done online. Computers can be easily hacked and the passwords can be stolen by professional hackers. Computers with Windows software are vulnerable. If a hacker breaches your computer's security he can easily login to your internet banking account and misuse it. The bank won't be able to find whether you are using the computer or somebody else. It is necessary that your computer should be safe and it should have firewall and antivirus software installed in it. In most offices the security is very high and you won't be able to download any software, songs etc. If you can't download software etc to your computer then it is regarded as a safe place to transact online. Also, changing your password regularly is recommended. It is advised not to login to your online account from cyber caf's quite often as hackers can easily capture your user id and password. If you access your online banking account from cyber caf's then it is advised to change your password as soon as you can. Never open an email, whose source you do not know. These emails could have virus, spyware or website links. Nowadays, there are many websites designed to look like banking websites. When you use your user id and password, it will capture it. These kinds of websites have started flourishing. This is called as phishing. So never open an unsolicited email. Paul has been providing answers to lots of queries through his website on a wide variety of subjects ranging from satellite phones to acne. To learn more visit http://www.askaquery.com/Answers/qn618.html Article Source:http://EzineArticles.com/?expert=Paul_Cris banking - Savings Accounts - An Overview Being in control of your finances means not only managing your current account wisely, but planning ahead too. Although we are used to thinking we will have the welfare state to fall back on, the support offered by state benefits is far from generous - most people would struggle to exist on a basic pension alone. Furthermore, our ageing population face an uncertain future as demographics change - by the time today's thirty-year olds reach retirement there's no telling how the economic situation will look. Aside from planning your retirement, you ought to have something to fall back on in case there's a sudden change in your circumstances - how would you manage if illness or redundancy curtailed your earnings? Although these issues are serious ones, there are many ways to ensure that you and your family will be well provided for and finding them need not be a nightmare. Start today by considering how much you can afford to put by. Be realistic, but try to allocate a fair proportion of your budget - aim to save at least 10% of your monthly income if you can. Secondly, look at your options - this guide provides a general view of some of the more common ways to save and resources for finding more information. How you choose to save will depend on your age, circumstances and the amount you want to invest - but remember it's never too late to start, and never too early to plan for your future. Even if you can only afford to put a small amount away every month, it could make a huge difference in the long run. There are vast amounts of different ways to save and invest, and there are also tax benefits to take into account. In an effort to urge people to save, the government offer various incentives - such as tax-free savings plans and children's savings accounts. Savings accounts often attract higher interest rates than current accounts, so you could be earning money daily without expending any effort. For those willing to diversify, there are offshore accounts and investments to consider - these are explored in more detail below. Considering your family's financial security is often a high priority - check out the sections on children's accounts for ideas. The last section offers ways to find more information, with listings of bodies that may be able to help you. Finally, enjoy the feeling of taking responsibility for your own future!

banking - Savings Accounts - An Overview

Being in control of your finances means not only managing your current account wisely, but planning ahead too. Although we are used to thinking we will have the welfare state to fall back on, the support offered by state benefits is far from generous - most people would struggle to exist on a basic pension alone. Furthermore, our ageing population face an uncertain future as demographics change - by the time today's thirty-year olds reach retirement there's no telling how the economic situation will look. Aside from planning your retirement, you ought to have something to fall back on in case there's a sudden change in your circumstances - how would you manage if illness or redundancy curtailed your earnings? Although these issues are serious ones, there are many ways to ensure that you and your family will be well provided for and finding them need not be a nightmare. Start today by considering how much you can afford to put by. Be realistic, but try to allocate a fair proportion of your budget - aim to save at least 10% of your monthly income if you can. Secondly, look at your options - this guide provides a general view of some of the more common ways to save and resources for finding more information. How you choose to save will depend on your age, circumstances and the amount you want to invest - but remember it's never too late to start, and never too early to plan for your future. Even if you can only afford to put a small amount away every month, it could make a huge difference in the long run. There are vast amounts of different ways to save and invest, and there are also tax benefits to take into account. In an effort to urge people to save, the government offer various incentives - such as tax-free savings plans and children's savings accounts. Savings accounts often attract higher interest rates than current accounts, so you could be earning money daily without expending any effort. For those willing to diversify, there are offshore accounts and investments to consider - these are explored in more detail below. Considering your family's financial security is often a high priority - check out the sections on children's accounts for ideas. The last section offers ways to find more information, with listings of bodies that may be able to help you. Finally, enjoy the feeling of taking responsibility for your own future! Joe Kenny writes for Finance Fool, offering the latest information on saving accounts in the UK, visit us today and apply for a current account athat will earn you more! Visit today: http://www.financefool.co.uk/ Article Source:http://EzineArticles.com/?expert=Joseph_Kenny banking - Why You Should Care At All About Choosing A Bank And What To Watch Out For People quite often make decisions impulsively, without considering the consequences. This may work okay in some situations but it could come back to bite you when dealing with financial topics like investments, financing, refinancing, insurance and mortgages. To be a wise investor we should take some time to consider and know more about the place where we are going to deposit our money. A very wide array of banks exist. Just to name a few that you'll probably recognize; Citizen Bank, Well Fargo Bank, Region Bank and Scotia Banks. Here are some guidelines to consider before choosing a bank: 1. Location: While choosing a bank, you must consider the location. If you wish to access your bank account regularly then you should choose a bank located near to your business place or home. 2. Availability of ATM Machines: Always choose a bank with a large number of ATM machines close by. Also, regarding the ATM's you should ensure they can provide the following services: a) Do the ATM machines allow you to make deposits? b) Do they give printout statements of transaction made by you? Most do nowadays but some countries may not. c) Can you order more checques through the ATM? 3. Telephone Banking: If you are a very busy person and can not go to the bank during banking hours then you should choose a bank, which can provide you with telephone banking services. With telephone banking you can make transactions and check on your account anytime of the day. With the help of telephone banking you can do the following operations: a) Transfer money from your account to pay utility bills. b) Cancel recent transactions. c) Order another cheque book. d) Sign up for additional services like loans, credit cards or lines of credit. 5. Internet Banking: Internet banking allows you to perform the same services as telephone banking. But here inquiries and transactions can be done via any internet connection through the banks website. If they have one! So do ask as it's a great convenience when traveling. If you are searching a bank for small business, here are some guidelines to help you while choosing a bank. 1. Again, consider the location and make sure the bank understands the nature of your business to meet your requirements. For example, if your run a movie rental business that's open till midnight you may want to do late night or very early morning deposits. So in this case ensure the bank has a night deposit box. 2. Find out the transaction fees and don't assume the fees are similar to personal accounts. Banks generally charge businesses way more due to the increase in transactions. 3. Find out the rates for small business loans or lines of credit and the turn around time to secure funding. You may find you're self in a situation where you need an extra few thousand or more to secure better pricing on bulk orders of supplies or something else. The above list is in now way exhaustive but a place to begin if you're just now looking or considering a switch.

banking - Why You Should Care At All About Choosing A Bank And What To Watch Out For

People quite often make decisions impulsively, without considering the consequences. This may work okay in some situations but it could come back to bite you when dealing with financial topics like investments, financing, refinancing, insurance and mortgages. To be a wise investor we should take some time to consider and know more about the place where we are going to deposit our money. A very wide array of banks exist. Just to name a few that you'll probably recognize; Citizen Bank, Well Fargo Bank, Region Bank and Scotia Banks. Here are some guidelines to consider before choosing a bank: 1. Location: While choosing a bank, you must consider the location. If you wish to access your bank account regularly then you should choose a bank located near to your business place or home. 2. Availability of ATM Machines: Always choose a bank with a large number of ATM machines close by. Also, regarding the ATM's you should ensure they can provide the following services: a) Do the ATM machines allow you to make deposits? b) Do they give printout statements of transaction made by you? Most do nowadays but some countries may not. c) Can you order more checques through the ATM? 3. Telephone Banking: If you are a very busy person and can not go to the bank during banking hours then you should choose a bank, which can provide you with telephone banking services. With telephone banking you can make transactions and check on your account anytime of the day. With the help of telephone banking you can do the following operations: a) Transfer money from your account to pay utility bills. b) Cancel recent transactions. c) Order another cheque book. d) Sign up for additional services like loans, credit cards or lines of credit. 5. Internet Banking: Internet banking allows you to perform the same services as telephone banking. But here inquiries and transactions can be done via any internet connection through the banks website. If they have one! So do ask as it's a great convenience when traveling. If you are searching a bank for small business, here are some guidelines to help you while choosing a bank. 1. Again, consider the location and make sure the bank understands the nature of your business to meet your requirements. For example, if your run a movie rental business that's open till midnight you may want to do late night or very early morning deposits. So in this case ensure the bank has a night deposit box. 2. Find out the transaction fees and don't assume the fees are similar to personal accounts. Banks generally charge businesses way more due to the increase in transactions. 3. Find out the rates for small business loans or lines of credit and the turn around time to secure funding. You may find you're self in a situation where you need an extra few thousand or more to secure better pricing on bulk orders of supplies or something else. The above list is in now way exhaustive but a place to begin if you're just now looking or considering a switch. Submitted by Chad McDonald for the well fargo online banking community searching for a well fargo bank in their area. Article Source:http://EzineArticles.com/?expert=Chadder_McD. banking - Why Tracking Your Investments is Must? First thing first, planning your investments is must. Financial planning involves various steps. First you need to define your aim. And than you need to act to achieve your aim. S electing the correct investment, allocating assets to the short-listed avenues based on the final aim. Now if you think that this is what is only required to be done than you are mistaken and you are on your way to loose money and control over your investments. It is a must that you track your investments on a regular basis. Tracking investments on regular basis does not mean that you change your portfolio every now and than. Also remember the golden rule of investment i.e., investment is always successful in long run. Tracking means keeping a close watch on your investments, understating the way they move upward or downward. An intelligent investor always tries to be more composed and don't get panic with daily fluctuations and takes the corrective action at the right time. There are a number of reasons why you need to keep a track of your investments. One of the main reasons in change in sensex or stock market over a period of time. Here, you must understand that the change is due to change on time period. Another reason could change in market factors. One more very important reason is change in political status of the state. Least but not the last factor is the environment. We have always restated that investors should hold manifold of investment portfolios, each catering to a particular need or objective. This again highlights the significance of tracking investments as it has a direct bearing on your future aims. For you, keeping a usual track of their investments provides you with the opportunity of identifying washout in their portfolio. As a result you can avoid failures and non performing investments.

banking - Why Tracking Your Investments is Must?

First thing first, planning your investments is must. Financial planning involves various steps. First you need to define your aim. And than you need to act to achieve your aim. S electing the correct investment, allocating assets to the short-listed avenues based on the final aim. Now if you think that this is what is only required to be done than you are mistaken and you are on your way to loose money and control over your investments. It is a must that you track your investments on a regular basis. Tracking investments on regular basis does not mean that you change your portfolio every now and than. Also remember the golden rule of investment i.e., investment is always successful in long run. Tracking means keeping a close watch on your investments, understating the way they move upward or downward. An intelligent investor always tries to be more composed and don't get panic with daily fluctuations and takes the corrective action at the right time. There are a number of reasons why you need to keep a track of your investments. One of the main reasons in change in sensex or stock market over a period of time. Here, you must understand that the change is due to change on time period. Another reason could change in market factors. One more very important reason is change in political status of the state. Least but not the last factor is the environment. We have always restated that investors should hold manifold of investment portfolios, each catering to a particular need or objective. This again highlights the significance of tracking investments as it has a direct bearing on your future aims. For you, keeping a usual track of their investments provides you with the opportunity of identifying washout in their portfolio. As a result you can avoid failures and non performing investments. Article Source:http://EzineArticles.com/?expert=Maria_Rain banking - Business Banking Account Checklist: Choosing And Operating A Banking Account A business bank account needs facilities and features that are different than those of a personal bank account. Therefore, stop and think before you open a business bank account with the bank where you have a personal account. You need to research the business banking facilities of more than one bank before you select the one where you can open an account. The Advantage of Opening Business Account with a Familiar Bank: There are advantages of banking with a bank with which you already have a personal account. The bank authorities may be more helpful if they have known you for long and know that you have a good financial and debt repayment record. Advantages of Shopping Around before Opening a Bank Account: However, there are many advantages of shopping for a bank account. You will have more options regarding the kind of banking services that suit your business needs the best. Since many banks offer deals to attract businesspersons, you can take the advantage of the deals to get an enhanced package. How to Choose a Business Banking Account: You must keep in mind that you need not operate a single business account; depending on the size and needs of your business, you could have two or more business accounts. Here is a checklist to consider when you select a banking account. 1) Do you make frequent transactions at the bank? In that case, you may want to consider monthly transaction fee, rather than a fee for each transaction completed. 2) A merchant account is a good idea if a large chunk of your bank transactions is carried out through debit and credit cards. 3) If you need to conduct many overseas transactions, then a foreign currency account is a good option. 4) If you need more than one business banking account, you need to consider the following: ? Holding accounts with many banks will give you facilities you need for different aspects of your business. ? Holding more than one account with a single bank makes you eligible for many deals offered by the bank. Opening a Business Banking Account: Keep the following in mind when opening a business banking account. 1) Have a meeting with your business consultant before you open a business bank account. 2) Bring your documents, including proof of residence, age, and income, since these will be needed by the bank to verify your statement. 3) The bank will give you an account-opening mandate so you can open an account with them. 4) If your business is incorporated, you will need to submit a certificate of incorporation. It is always a good idea to separate your business account from your personal account, even if you run a small business or work from home. It makes it easier for you to avail business loans, and other facilities related to business. Consider the checklist given above when you shop for or open a business banking account. If you need to, you can even hire a business consultant to help you select a good bank to open an account with.

banking - Business Banking Account Checklist: Choosing And Operating A Banking Account

A business bank account needs facilities and features that are different than those of a personal bank account. Therefore, stop and think before you open a business bank account with the bank where you have a personal account. You need to research the business banking facilities of more than one bank before you select the one where you can open an account. The Advantage of Opening Business Account with a Familiar Bank: There are advantages of banking with a bank with which you already have a personal account. The bank authorities may be more helpful if they have known you for long and know that you have a good financial and debt repayment record. Advantages of Shopping Around before Opening a Bank Account: However, there are many advantages of shopping for a bank account. You will have more options regarding the kind of banking services that suit your business needs the best. Since many banks offer deals to attract businesspersons, you can take the advantage of the deals to get an enhanced package. How to Choose a Business Banking Account: You must keep in mind that you need not operate a single business account; depending on the size and needs of your business, you could have two or more business accounts. Here is a checklist to consider when you select a banking account. 1) Do you make frequent transactions at the bank? In that case, you may want to consider monthly transaction fee, rather than a fee for each transaction completed. 2) A merchant account is a good idea if a large chunk of your bank transactions is carried out through debit and credit cards. 3) If you need to conduct many overseas transactions, then a foreign currency account is a good option. 4) If you need more than one business banking account, you need to consider the following: ? Holding accounts with many banks will give you facilities you need for different aspects of your business. ? Holding more than one account with a single bank makes you eligible for many deals offered by the bank. Opening a Business Banking Account: Keep the following in mind when opening a business banking account. 1) Have a meeting with your business consultant before you open a business bank account. 2) Bring your documents, including proof of residence, age, and income, since these will be needed by the bank to verify your statement. 3) The bank will give you an account-opening mandate so you can open an account with them. 4) If your business is incorporated, you will need to submit a certificate of incorporation. It is always a good idea to separate your business account from your personal account, even if you run a small business or work from home. It makes it easier for you to avail business loans, and other facilities related to business. Consider the checklist given above when you shop for or open a business banking account. If you need to, you can even hire a business consultant to help you select a good bank to open an account with. Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business. Business Owners all across the country are joining "The Community of Small Business Owners" to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences. Article Source:http://EzineArticles.com/?expert=Alexander_Gordon banking - What's the Point of an Offshore Bank Account? Sigh - when I'm asked what I do for a living I'm then asked the 'isn't offshore banking illegal?' question - having answered that I'm usually asked 'so what's the point of an offshore bank account?' - because having pointed out that there is nothing unethical or illegal about opening an account offshore and that not everyone who 'goes offshore' does so to evade taxation, people seem to wonder why on earth anyone would want to bother with an offshore bank account in the first place! It's funny how the offshore world still seems to be synonymous in many people's minds with shady dealings, fugitive tax exiles and crime - when in actual fact by simply opening a bank account in a country other than the one in which you're currently resident - like you might do if you own a holiday home abroad for example - means you've effectively 'gone offshore!' So if you're wondering what's the point of an offshore bank account and whether you could actually effectively use one, read on to find out more... As stated, an offshore bank account is one opened in a jurisdiction other than the one in which you're currently resident - although usually one considers an account opened in a low tax jurisdiction to be a 'proper' offshore bank account - so the Cayman Islands or the Channel Islands are more likely to be synonymous in people's minds with offshore banking than Spain or Mexico for example. But in actual fact, Spain and Mexico are just as likely to be used by non-residents for banking purposes as any because many people open accounts in countries where they have a second home, where they holiday frequently or where they regularly work. Just think about it - if you're considering buying real estate abroad or you often travel to a given country for work or leisure breaks it may make sense for you to consider opening a bank account locally so that you can set up standing orders and direct debits for things like your water or electricity supply for example, or so that you can have funds available for a local transfer when you want to do a bit of shopping or sightseeing. Other people expatriate and go to live or retire abroad and some of the countries they choose have different banking laws or rules and regulations that restrict the individual so much that they decide to keep the majority of their money elsewhere where they can access it easily for example - or where they can reduce the amount of taxation they have to pay out on interest earned maybe. Some people who live and work abroad end up in countries which are politically or economically unstable - for people such as this it makes no sense to keep their money in a local bank account and in a local currency no matter how much interest they are offered! Again, in such an instance as this it makes far more sense to have an offshore bank account that is safely protected by international banking insurers and strict local laws in a robust and respected jurisdiction like the Isle of Man for example, rather than in a country where austerity is a possibility or the closure of XYZ Bank Limited would result in the loss of all an individual's funds with no chance of recompense. So, if you fall into any of the above categories it's highly likely that an offshore bank account could be of benefit to you. However, you have to consider your options relating to which jurisdiction, which bank and which offshore bank account type before you move your money, and remember - non-disclosure of offshore funds could land you in a whole heap of trouble! Get advice if you want to get it right.

banking - What's the Point of an Offshore Bank Account?

Sigh - when I'm asked what I do for a living I'm then asked the 'isn't offshore banking illegal?' question - having answered that I'm usually asked 'so what's the point of an offshore bank account?' - because having pointed out that there is nothing unethical or illegal about opening an account offshore and that not everyone who 'goes offshore' does so to evade taxation, people seem to wonder why on earth anyone would want to bother with an offshore bank account in the first place! It's funny how the offshore world still seems to be synonymous in many people's minds with shady dealings, fugitive tax exiles and crime - when in actual fact by simply opening a bank account in a country other than the one in which you're currently resident - like you might do if you own a holiday home abroad for example - means you've effectively 'gone offshore!' So if you're wondering what's the point of an offshore bank account and whether you could actually effectively use one, read on to find out more... As stated, an offshore bank account is one opened in a jurisdiction other than the one in which you're currently resident - although usually one considers an account opened in a low tax jurisdiction to be a 'proper' offshore bank account - so the Cayman Islands or the Channel Islands are more likely to be synonymous in people's minds with offshore banking than Spain or Mexico for example. But in actual fact, Spain and Mexico are just as likely to be used by non-residents for banking purposes as any because many people open accounts in countries where they have a second home, where they holiday frequently or where they regularly work. Just think about it - if you're considering buying real estate abroad or you often travel to a given country for work or leisure breaks it may make sense for you to consider opening a bank account locally so that you can set up standing orders and direct debits for things like your water or electricity supply for example, or so that you can have funds available for a local transfer when you want to do a bit of shopping or sightseeing. Other people expatriate and go to live or retire abroad and some of the countries they choose have different banking laws or rules and regulations that restrict the individual so much that they decide to keep the majority of their money elsewhere where they can access it easily for example - or where they can reduce the amount of taxation they have to pay out on interest earned maybe. Some people who live and work abroad end up in countries which are politically or economically unstable - for people such as this it makes no sense to keep their money in a local bank account and in a local currency no matter how much interest they are offered! Again, in such an instance as this it makes far more sense to have an offshore bank account that is safely protected by international banking insurers and strict local laws in a robust and respected jurisdiction like the Isle of Man for example, rather than in a country where austerity is a possibility or the closure of XYZ Bank Limited would result in the loss of all an individual's funds with no chance of recompense. So, if you fall into any of the above categories it's highly likely that an offshore bank account could be of benefit to you. However, you have to consider your options relating to which jurisdiction, which bank and which offshore bank account type before you move your money, and remember - non-disclosure of offshore funds could land you in a whole heap of trouble! Get advice if you want to get it right. Rhiannon Williamson writes about offshore saving and investing as well as offshore banking and her website http://www.shelteroffshore.com/ is full of simple, accessible and useful tips, tricks, articles and reports about making the most of your money and protecting your assets and your financial future. Article Source:http://EzineArticles.com/?expert=Rhiannon_Williamson banking - Is Online Banking Safe? Today, people are aware of the concept of online banking offered by several banks, of which some are newly opened banks and some are expansions of a well-established banking company. But one question remains to be answered, is Online Banking safe? Despite the cut-rate deals offered by most Online Banks, numerous customers are questioning themselves about the safety of Online Banking. Most of the newly established online banks inform their customer that they have the advanced and secure technology to insure their client's accounts with total confidence and give the assurance that their security is the one that you can trust. Despite of all these assurances given by these Online Banks, most customers are still worrying, because their confidence is already shaken by computer viruses and hackers. Even a very established bank suffers online security malfunctions. The very reason why customers fear online is because if, in fact, their account was compromised, it could be a life-altering virtual nightmare of stolen identity and depleted funds. As the years pass, these incidents are rarely reported and have not reached a big epidemic. Unfortunately, the few occurrences have received a lot of press. For example, in May of 1999 the online bank Egg upgraded its website, and with unexpected turn of events, the newly installed security measures scrambled the online session protocols which allowed users to view banking details of other customers. Also in November of 1999, the Halifax banks had to suspend all online banking services due to the bug that backfired while it was being fixed, and customers were also able to view the accounts of other customers, a total invasion of privacy. The Barclays, which claimed to be the largest online bank in the United Kingdom, had to shut down their website at the end of July 1999 because their customers were serving bank statements by other clients. These incidents seems to have one thing in common, their advanced and secure technology opened up when they were upgrading the software. Here is a big problem to be considered in online operations, complex e-banking or online banking's test on its reliability and security are mostly done on live websites or should we say, in the wild. As these banks rush to be able to get online, they rarely test for the worst thing that may happen, as thousands of customers try to log on and at the same time, numerous crackers and hackers test the defenses of the web site. Here is one more thing to be considered, who will pay for the emptied accounts which were raided by fraudsters? Most banks rely on a small print that tells the users they are responsible for their data and money unless they alerted the bank for any problems. Most customers were not satisfied with this policy, so most online banks gave a word that they will pay up the lost money unless the customer gives a fraudulent report regarding their accounts and negligence of customer. Of all the given incidents, now it's up to you to judge on the safety of online banking. You have to think twice before you start saving or investing you money on online banking services.

banking - Is Online Banking Safe?

Today, people are aware of the concept of online banking offered by several banks, of which some are newly opened banks and some are expansions of a well-established banking company. But one question remains to be answered, is Online Banking safe? Despite the cut-rate deals offered by most Online Banks, numerous customers are questioning themselves about the safety of Online Banking. Most of the newly established online banks inform their customer that they have the advanced and secure technology to insure their client's accounts with total confidence and give the assurance that their security is the one that you can trust. Despite of all these assurances given by these Online Banks, most customers are still worrying, because their confidence is already shaken by computer viruses and hackers. Even a very established bank suffers online security malfunctions. The very reason why customers fear online is because if, in fact, their account was compromised, it could be a life-altering virtual nightmare of stolen identity and depleted funds. As the years pass, these incidents are rarely reported and have not reached a big epidemic. Unfortunately, the few occurrences have received a lot of press. For example, in May of 1999 the online bank Egg upgraded its website, and with unexpected turn of events, the newly installed security measures scrambled the online session protocols which allowed users to view banking details of other customers. Also in November of 1999, the Halifax banks had to suspend all online banking services due to the bug that backfired while it was being fixed, and customers were also able to view the accounts of other customers, a total invasion of privacy. The Barclays, which claimed to be the largest online bank in the United Kingdom, had to shut down their website at the end of July 1999 because their customers were serving bank statements by other clients. These incidents seems to have one thing in common, their advanced and secure technology opened up when they were upgrading the software. Here is a big problem to be considered in online operations, complex e-banking or online banking's test on its reliability and security are mostly done on live websites or should we say, in the wild. As these banks rush to be able to get online, they rarely test for the worst thing that may happen, as thousands of customers try to log on and at the same time, numerous crackers and hackers test the defenses of the web site. Here is one more thing to be considered, who will pay for the emptied accounts which were raided by fraudsters? Most banks rely on a small print that tells the users they are responsible for their data and money unless they alerted the bank for any problems. Most customers were not satisfied with this policy, so most online banks gave a word that they will pay up the lost money unless the customer gives a fraudulent report regarding their accounts and negligence of customer. Of all the given incidents, now it's up to you to judge on the safety of online banking. You have to think twice before you start saving or investing you money on online banking services. Stu Pearson has an interest in Finance & Business and Online Banking, for more FREE information and articles please visit Online Banking Resources Article Source:http://EzineArticles.com/?expert=Stu_Pearson banking - Wachovia Online Banking Wachovia online banking is fast becoming the banking method of choice for millions of customers looking to save time. In fact just recently the Wachovia online banking system landed in top place for customer satisfaction as gauged by Keynote System's "Keynote Customer Experience and Service Level Rankings." What features set Wachovia online banking apart from its competition? Ease of use is what put Wachovia ahead of the rest. Online banking benefits banks by giving customers a way to help themselves. But online banking also has to benefit customers, and if such a program isn't intuitive and easy to navigate, customers won't use it. That's not a problem at Wachovia. Its web site is uncluttered and neatly categorized which enables users to see at a glance exactly where to go to address their immediate needs. Another area in which Wachovia online banking excels is its access to customer service. Even though the site is easy to navigate, there are times when customers won't know where to go or how to proceed. When that happens, all they need to do is click on the Customer Service link. There customers will find several FAQ's that have been designed to answer the most common questions. There's also a site map and a glossary of terms. If that's still not enough, customers need only click on the Contact Us link. Again, customers will find their banking needs listed by category. They need only click on the appropriate link and in a split second, they'll have complete contact information including a toll-free telephone number in most cases. So even though Wachovia online banking customers are dealing with a web site access to a human being is never more than a click away. Besides the ease of use and quick access to customer service, Wachovia online banking is offered absolutely free of charge. Better still, many prospective customers claim that the online banking web site is the feature that helped them choose Wachovia as their bank. No wonder Wachovia tops the list!

banking - Wachovia Online Banking

Wachovia online banking is fast becoming the banking method of choice for millions of customers looking to save time. In fact just recently the Wachovia online banking system landed in top place for customer satisfaction as gauged by Keynote System's "Keynote Customer Experience and Service Level Rankings." What features set Wachovia online banking apart from its competition? Ease of use is what put Wachovia ahead of the rest. Online banking benefits banks by giving customers a way to help themselves. But online banking also has to benefit customers, and if such a program isn't intuitive and easy to navigate, customers won't use it. That's not a problem at Wachovia. Its web site is uncluttered and neatly categorized which enables users to see at a glance exactly where to go to address their immediate needs. Another area in which Wachovia online banking excels is its access to customer service. Even though the site is easy to navigate, there are times when customers won't know where to go or how to proceed. When that happens, all they need to do is click on the Customer Service link. There customers will find several FAQ's that have been designed to answer the most common questions. There's also a site map and a glossary of terms. If that's still not enough, customers need only click on the Contact Us link. Again, customers will find their banking needs listed by category. They need only click on the appropriate link and in a split second, they'll have complete contact information including a toll-free telephone number in most cases. So even though Wachovia online banking customers are dealing with a web site access to a human being is never more than a click away. Besides the ease of use and quick access to customer service, Wachovia online banking is offered absolutely free of charge. Better still, many prospective customers claim that the online banking web site is the feature that helped them choose Wachovia as their bank. No wonder Wachovia tops the list! Dennis Frank is an Internet Entrepreneur and Author of many fine websites such as Bank-Now.net. Please visit the website for more related articles and information about Wachovia Online Banking. Article Source:http://EzineArticles.com/?expert=Dennis_Frank banking - Can Technology Help Community Bankers Compete? Many believe that integrated banking technology solutions are beyond the resources of many community banks. This assumption is based on the belief that high costs and intricate management skills that are associated with the design, installation, and maintenance of such systems. Thus, the return on investment is insufficient to make an adequate business case for small or mid-size banks. Times have changed. Gone are the days when custom-built solutions required high dollar integrations, lengthy implementations and extensive human resources. Through outsourced web-based banking technology, community bankers now have the opportunity to enhance the value of each customer interaction. Community bankers now have access to affordable web-based banking tools that help banks make quality and proactive business decisions, which leads to a distinct competitive advantage. A business case can easily be built for the many benefits of integrated banking technology solutions, not only for the bottom line but also for customer contentment. Focus on the Customer Community banks now can concentrate on standing out from the competition. It benefits the bottom line to avoid tedious, imprecise paper-based processes, because these require considerable time and effort from employees. Using web-based banking tools to expedite routine processes allows employees to focus on their most important role'serving the customer. Affordable for Every Institution With minimal capital outlay, community banks can afford web-based banking technology. Many solutions offer transactional-based pricing, which allows banks to pay only for the services they request and execute. Today's technology allows every size institution to utilize the same web-based banking tools that were developed to serve the largest financial institutions. These technological advancements help community banks to compete on an even playing field. Easy to Implement & Update Implementation of integrated banking technology solutions is highly flexible, so that community banks can quickly transition with few internal resources. Many web-based banking tools require only an Internet browser and can easily be incorporated into existing operations. As regulations change, technology updates are seamless, requiring no disruption of day-to-day services. Today community banks are faced with a daunting challenge. They must protect customers, transactions and the bottom line, while simultaneously delivering excellent service, complying with regulatory mandates and meeting business objectives. Outsourced web-based banking technology provides a clear choice to respond to this complex challenge. By choosing integrated banking technology solutions, community bankers can benefit from technology and better compete.

banking - Can Technology Help Community Bankers Compete?

Many believe that integrated banking technology solutions are beyond the resources of many community banks. This assumption is based on the belief that high costs and intricate management skills that are associated with the design, installation, and maintenance of such systems. Thus, the return on investment is insufficient to make an adequate business case for small or mid-size banks. Times have changed. Gone are the days when custom-built solutions required high dollar integrations, lengthy implementations and extensive human resources. Through outsourced web-based banking technology, community bankers now have the opportunity to enhance the value of each customer interaction. Community bankers now have access to affordable web-based banking tools that help banks make quality and proactive business decisions, which leads to a distinct competitive advantage. A business case can easily be built for the many benefits of integrated banking technology solutions, not only for the bottom line but also for customer contentment. Focus on the Customer Community banks now can concentrate on standing out from the competition. It benefits the bottom line to avoid tedious, imprecise paper-based processes, because these require considerable time and effort from employees. Using web-based banking tools to expedite routine processes allows employees to focus on their most important role'serving the customer. Affordable for Every Institution With minimal capital outlay, community banks can afford web-based banking technology. Many solutions offer transactional-based pricing, which allows banks to pay only for the services they request and execute. Today's technology allows every size institution to utilize the same web-based banking tools that were developed to serve the largest financial institutions. These technological advancements help community banks to compete on an even playing field. Easy to Implement & Update Implementation of integrated banking technology solutions is highly flexible, so that community banks can quickly transition with few internal resources. Many web-based banking tools require only an Internet browser and can easily be incorporated into existing operations. As regulations change, technology updates are seamless, requiring no disruption of day-to-day services. Today community banks are faced with a daunting challenge. They must protect customers, transactions and the bottom line, while simultaneously delivering excellent service, complying with regulatory mandates and meeting business objectives. Outsourced web-based banking technology provides a clear choice to respond to this complex challenge. By choosing integrated banking technology solutions, community bankers can benefit from technology and better compete. About the Author Cleve Shultz has spent more than 11 years helping financial institutions run more profitable organizations through increasing efficiencies and improving service levels. Currently, Mr. Shultz is a director at eFunds Mass Market, specialists in the development and deployment of web-based banking tools for any size financial institution, including community banks. Article Source:http://EzineArticles.com/?expert=Cleve_Shultz banking - Make Your Bank A Welcome And Willing Partner In Your Business Many business owners do not consider their banks as welcome and willing partners in their business. Yet it is an important relationship that will often affect your ability to grow and to survive periods of financial stress. You want to treat your bank like your best customer, not your worst supplier. Working with an unwilling and unwelcome partner is obviously not a very constructive relationship. A more effective partnership with your bank can be built on some of the following ideas: 1. They will not get it. Start by accepting that your bankers will never fully understand what you do for a living - your motivation, your interests or your circumstances. But you do have to try to get them to understand enough about you and your business plans so that they can be confident that working with you will be good for them. Remember the bank's primary role is not to lend you money, it's to earn a return on the investments of shareholders and depositors while protecting their money. 2. It's only the money. You will need to prove that the money is all you need. You have everything else looked after. The banker will not have to worry about your customers, your management team, your sales and marketing efforts, your operating efficiencies, your health, your marriage or anything else except the financial services you need. 3. They have a checklist. When you meet and fill in the forms, remember the banker wants to be satisfied on four criteria: Character - do you have a reputation of integrity and responsibility on prior financial obligations? Capital - do you have enough personally at risk in your business? Capacity - do you have the skills and resources to deliver the planned results? Collateral - if you cannot repay your loans, what assets are available to cover them? Good answers on these points will provide the start to a relationship with a willing partner instead of a reluctant one. 4. Reduce the risk. You may be stimulated by risk and reward, your banker is not. It is a very conservative career choice. Regardless of how good you and your plans are, the banker will still want personal guarantees. That means he gets your house if you fail. (And I have never met a banker who found it amusing to suggest that you should get his house if you succeed.) 5. Think big. The more you need, the more interested they'll be and you'll likely get better terms. (The only time I had no personal guarantees was when our loans were at $4.5 million.) If you're starting small then describe your growth plans and your intention to build a strong, long term banking relationship. 6. Get a second opinion. Bankers love to win business away from other banks. (That's good for their career plans.) So check out the competition anytime you need new financing or if your current bank is not serving you well. Just be sincere and ready to change. One banker asked me directly, "If I meet all your requests will you move to my bank?" I said, "Yes". He delivered and so did we. 7. It's not a people business. It's a numbers business and you cannot negotiate with a computer. That friendly, understanding person you're talking to does not make the decisions. Your numbers get fed into some obscure computer program and the answers (or more questions) pop out. They are not negotiable. A good banking relationship means that you will be told what numbers are required to get favourable answers. 8. Manage your numbers Make sure your business plan computes and gives results that are attractive to investors and to lenders. Then manage the numbers to deliver the results and stay within the limits set by the bank. Read the fine print to be sure you don't miss any requirements to maintain financial ratios or any restrictions on payments to shareholders. Deliver financial reports as required, but also be sure to provide your own analysis and explanations before someone else does. You don't want that computer to set off alarms. 9. No surprises, please. Bad news is never well received, but the reaction will be much worse if it's also a surprise. And no news will only make them worry. Keep your bankers aware of what might go wrong and what you plan to do about it. Then keep them current as things evolve so they get used to your ever-changing circumstances and how you are handling them. (Hopefully, well.) Avoid going back with a new plan too soon or too often. And try to plan well ahead of any request for more financing. 10. People still matter. The personal connection is still a very important part of a good relationship with your bank. Part of managing that relationship is to be sure that you are not entirely dependent on just one contact. If it lasts, the contact will change and you need to know someone else to maintain continuity of the relationship. Stay connected at several levels. Your banking relationship needs to be strong to withstand the inevitable hard times that hit any business. A welcome and willing partner should help you weather those occasional storms.

banking - Make Your Bank A Welcome And Willing Partner In Your Business

Many business owners do not consider their banks as welcome and willing partners in their business. Yet it is an important relationship that will often affect your ability to grow and to survive periods of financial stress. You want to treat your bank like your best customer, not your worst supplier. Working with an unwilling and unwelcome partner is obviously not a very constructive relationship. A more effective partnership with your bank can be built on some of the following ideas: 1. They will not get it. Start by accepting that your bankers will never fully understand what you do for a living - your motivation, your interests or your circumstances. But you do have to try to get them to understand enough about you and your business plans so that they can be confident that working with you will be good for them. Remember the bank's primary role is not to lend you money, it's to earn a return on the investments of shareholders and depositors while protecting their money. 2. It's only the money. You will need to prove that the money is all you need. You have everything else looked after. The banker will not have to worry about your customers, your management team, your sales and marketing efforts, your operating efficiencies, your health, your marriage or anything else except the financial services you need. 3. They have a checklist. When you meet and fill in the forms, remember the banker wants to be satisfied on four criteria: Character - do you have a reputation of integrity and responsibility on prior financial obligations? Capital - do you have enough personally at risk in your business? Capacity - do you have the skills and resources to deliver the planned results? Collateral - if you cannot repay your loans, what assets are available to cover them? Good answers on these points will provide the start to a relationship with a willing partner instead of a reluctant one. 4. Reduce the risk. You may be stimulated by risk and reward, your banker is not. It is a very conservative career choice. Regardless of how good you and your plans are, the banker will still want personal guarantees. That means he gets your house if you fail. (And I have never met a banker who found it amusing to suggest that you should get his house if you succeed.) 5. Think big. The more you need, the more interested they'll be and you'll likely get better terms. (The only time I had no personal guarantees was when our loans were at $4.5 million.) If you're starting small then describe your growth plans and your intention to build a strong, long term banking relationship. 6. Get a second opinion. Bankers love to win business away from other banks. (That's good for their career plans.) So check out the competition anytime you need new financing or if your current bank is not serving you well. Just be sincere and ready to change. One banker asked me directly, "If I meet all your requests will you move to my bank?" I said, "Yes". He delivered and so did we. 7. It's not a people business. It's a numbers business and you cannot negotiate with a computer. That friendly, understanding person you're talking to does not make the decisions. Your numbers get fed into some obscure computer program and the answers (or more questions) pop out. They are not negotiable. A good banking relationship means that you will be told what numbers are required to get favourable answers. 8. Manage your numbers Make sure your business plan computes and gives results that are attractive to investors and to lenders. Then manage the numbers to deliver the results and stay within the limits set by the bank. Read the fine print to be sure you don't miss any requirements to maintain financial ratios or any restrictions on payments to shareholders. Deliver financial reports as required, but also be sure to provide your own analysis and explanations before someone else does. You don't want that computer to set off alarms. 9. No surprises, please. Bad news is never well received, but the reaction will be much worse if it's also a surprise. And no news will only make them worry. Keep your bankers aware of what might go wrong and what you plan to do about it. Then keep them current as things evolve so they get used to your ever-changing circumstances and how you are handling them. (Hopefully, well.) Avoid going back with a new plan too soon or too often. And try to plan well ahead of any request for more financing. 10. People still matter. The personal connection is still a very important part of a good relationship with your bank. Part of managing that relationship is to be sure that you are not entirely dependent on just one contact. If it lasts, the contact will change and you need to know someone else to maintain continuity of the relationship. Stay connected at several levels. Your banking relationship needs to be strong to withstand the inevitable hard times that hit any business. A welcome and willing partner should help you weather those occasional storms. With thanks to the bankers I've known and the advisors I've used, Happy Banking! Del Chatterson Article Source:http://EzineArticles.com/?expert=Delvin_R._Chatterson banking - Make Your Bank A Welcome And Willing Partner In Your Business Many business owners do not consider their banks as welcome and willing partners in their business. Yet it is an important relationship that will often affect your ability to grow and to survive periods of financial stress. You want to treat your bank like your best customer, not your worst supplier. Working with an unwilling and unwelcome partner is obviously not a very constructive relationship. A more effective partnership with your bank can be built on some of the following ideas: 1. They will not get it. Start by accepting that your bankers will never fully understand what you do for a living - your motivation, your interests or your circumstances. But you do have to try to get them to understand enough about you and your business plans so that they can be confident that working with you will be good for them. Remember the bank's primary role is not to lend you money, it's to earn a return on the investments of shareholders and depositors while protecting their money. 2. It's only the money. You will need to prove that the money is all you need. You have everything else looked after. The banker will not have to worry about your customers, your management team, your sales and marketing efforts, your operating efficiencies, your health, your marriage or anything else except the financial services you need. 3. They have a checklist. When you meet and fill in the forms, remember the banker wants to be satisfied on four criteria: Character - do you have a reputation of integrity and responsibility on prior financial obligations? Capital - do you have enough personally at risk in your business? Capacity - do you have the skills and resources to deliver the planned results? Collateral - if you cannot repay your loans, what assets are available to cover them? Good answers on these points will provide the start to a relationship with a willing partner instead of a reluctant one. 4. Reduce the risk. You may be stimulated by risk and reward, your banker is not. It is a very conservative career choice. Regardless of how good you and your plans are, the banker will still want personal guarantees. That means he gets your house if you fail. (And I have never met a banker who found it amusing to suggest that you should get his house if you succeed.) 5. Think big. The more you need, the more interested they'll be and you'll likely get better terms. (The only time I had no personal guarantees was when our loans were at $4.5 million.) If you're starting small then describe your growth plans and your intention to build a strong, long term banking relationship. 6. Get a second opinion. Bankers love to win business away from other banks. (That's good for their career plans.) So check out the competition anytime you need new financing or if your current bank is not serving you well. Just be sincere and ready to change. One banker asked me directly, "If I meet all your requests will you move to my bank?" I said, "Yes". He delivered and so did we. 7. It's not a people business. It's a numbers business and you cannot negotiate with a computer. That friendly, understanding person you're talking to does not make the decisions. Your numbers get fed into some obscure computer program and the answers (or more questions) pop out. They are not negotiable. A good banking relationship means that you will be told what numbers are required to get favourable answers. 8. Manage your numbers Make sure your business plan computes and gives results that are attractive to investors and to lenders. Then manage the numbers to deliver the results and stay within the limits set by the bank. Read the fine print to be sure you don't miss any requirements to maintain financial ratios or any restrictions on payments to shareholders. Deliver financial reports as required, but also be sure to provide your own analysis and explanations before someone else does. You don't want that computer to set off alarms. 9. No surprises, please. Bad news is never well received, but the reaction will be much worse if it's also a surprise. And no news will only make them worry. Keep your bankers aware of what might go wrong and what you plan to do about it. Then keep them current as things evolve so they get used to your ever-changing circumstances and how you are handling them. (Hopefully, well.) Avoid going back with a new plan too soon or too often. And try to plan well ahead of any request for more financing. 10. People still matter. The personal connection is still a very important part of a good relationship with your bank. Part of managing that relationship is to be sure that you are not entirely dependent on just one contact. If it lasts, the contact will change and you need to know someone else to maintain continuity of the relationship. Stay connected at several levels. Your banking relationship needs to be strong to withstand the inevitable hard times that hit any business. A welcome and willing partner should help you weather those occasional storms.