Using your bank to the best advantage.[check] This checklist makes practical suggestions to enable the customer to use a bank--or banks--to their best advantage, and it encourages the customer to see the relationship with their bank as one between equals and not one in which a supplicant In an authentication system, supplicant refers to the client machine that wants to gain access to the network. See 802.1x. is dispensed dis·pense v. dis·pensed, dis·pens·ing, dis·pens·es v.tr. 1. To deal out in parts or portions; distribute. See Synonyms at distribute. 2. To prepare and give out (medicines). 3. favours by the bank at its whim whim n. 1. A sudden or capricious idea; a fancy. 2. Arbitrary thought or impulse: governed by whim. 3. A vertical horse-powered drum used as a hoist in a mine. . Good relationships have always been important, but in a situation in which the high street banks are changing and streamlining their operating structures, they may be more difficult to establish and maintain. Today, the one-to-one one-to-one adj. 1. Allowing the pairing of each member of a class uniquely with a member of another class. 2. Mathematics relationship of the past between the owner of a business and a bank may no longer be entirely appropriate or easy to achieve. Therefore, a planned approach to relationships with your bank has become even more important than before. Definition 'The bank' is the high street bank, internet bank, building society, post office, financial institution or even supermarket where the customer's account(s) is (are) held. The customer may be corporate or private or both. The proprietor proprietor n. the owner of anything, but particularly the owner of a business operated by that individual. PROPRIETOR. The owner. (q.v.) or manager of a business will have a relationship with the bank on behalf of that business and may also have his personal account with the bank. 'The bank', as used here, does not include merchant or investment banks The following is a list of investment banks Financial conglomerates Large financial-services conglomerates combine commercial banking and investment banking, and sometimes insurance. or other financial institutions providing services used only occasionally, if ever, by the average business. Action checklist 1. Find out the structure within which the bank operates The days when the only banking facilities were available from a branch of a high street bank which was self-contained self-con·tained adj. 1. Constituting a complete and independent unit in and of itself: A self-contained dictionary defines every word contained within it. 2. a. , with its own manager with clearly defined authority, have long since ceased. Today there are networks of geographically spread units with mobile specialists and a group or area manager who may not be located in your nearest branch. Nevertheless there will be a senior official with whom you normally deal, the focal point focal point n. See focus. of your relationship with the bank. Find out from him or her the structure within which they operate. It will almost certainly be wider than your immediate town unless the branch is above average size. Find out also the organisational structure within the building which you regard as the branch. Ask who does what; what functions are carried out elsewhere; and what authorities must be sought elsewhere. Above all, identify the official whom you should recognise as your 'bank manager'. 2. Get to know your bank(s) and be sure they get to know you Keep your bankers informed, in advance, about developments or initiatives in your business. Do not appear to presume pre·sume v. pre·sumed, pre·sum·ing, pre·sumes v.tr. 1. To take for granted as being true in the absence of proof to the contrary: We presumed she was innocent. about the likely attitude of your bankers in any situation. Aim to create a situation in which the person who deals with you will recognise you when you telephone the bank and will make that little extra effort to help which can mean so much. Ensure that neither of you is just a voice at the end of a telephone or a signature at the end of a letter, but a real person of whom each of you has a clear picture in mind. The bank will want to form as complete a picture of your business as it can. Your colleagues and your staff are your best ambassadors. Invite your bank manager to visit your premises where they can meet each other. Give a short presentation about what the business does, who and where its customers are, and the structure within the business. Consider whether you should introduce someone as your deputy with whom the bank can deal in your absence. 3. Enquire en·quire v. Variant of inquire. enquire Verb [-quiring, -quired] same as inquire enquiry n Verb 1. about new or improved services which may be available Keep in regular contact with your bankers as part of the process of promoting mutual familiarity. Enquire about changes in, and additions to, what the bank can provide as a service to your business. In these days of rapid technological development, changes can emerge without customers being aware of them, unless they make an effort to keep well informed. Find out about the pros and cons pros and cons Noun, pl the advantages and disadvantages of a situation [Latin pro for + con(tra) against] of: * electronic banking * distance banking * direct debiting direct debit Noun an order given to a bank or other financial institution by an account holder to pay an amount of money from the account to a specified person or company at regular intervals direct debit n for making as well receiving payments * using BACS BACS Bankers Automated Clearing System BACS Banks Automated Clearing System BACS British Association for Canadian Studies BACS British Association for Chemical Specialities BACS Bachelor of Arts Community Studies BACS Bachelor of Administrative and Commercial Studies (the Bankers Automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. Clearing System) for making and receiving payments directly into and out of your account * methods of making foreign payments * short-, medium- and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investments for available cash. Try to forget the services you have used, perhaps for many years and take a fresh look at what services your bank offers. Obtain the bank's literature on the services currently available. Don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. fall into the trap of assuming you know--you may not. Ask about products and services available through the bank--or associated organizations--such as: * business credit cards * insurance * car fleet management * debt factoring * investment management. 4. Discuss changes and developments in your business with your bank Be prudent and keep your bank informed. Ask what help they may be able to offer in your changing business. Don't think purely in terms of finance--term loans, shorter loans or an extended overdraft A check that is drawn on an account containing less money than the amount stated on the check. The term overdraft is also used in reference to the condition that exists when vouchers . Recognise that the services of today's banks extend far beyond the provision of funds into advice and help with planning and control, as well as services for holidays and foreign travel. 5. Discuss your business plans with the bank You may or may not regularly prepare a business plan. Your bankers would prefer it if you did so. Conventional wisdom strongly supports the view that those with business plans are more likely to succeed than those who adopt Micawber management ("wait and see what turns up"). A related checklist looks at business plans in detail. * Discuss your plan with your bankers--don't present it as a fait accompli, especially if it makes assumptions about the bank's attitude towards support for the business. Instead, present it as a document for discussion towards which bank thinking can make a valuable contribution. * Be prepared to revise your draft plan in the light of comments, but be prepared to argue your case. You know your business better than anyone. * Remember that the bank will be especially interested in cash flow and loan repayment. 6. Show periodic statements of results to the bank It is one thing to have plans, another to achieve them. Show the bank your results, perhaps at the same time as you produce your new or revised business plan. These documents should, after all, dovetail dovetail (dov´tāl), n a widened or fanned-out portion of a prepared cavity, usually established deliberately to increase the retention and resistance form. . Invite comment and expect constructive criticism. Ask for suggestions for those parts of the business that require special attention. Present a schedule of your debtors and creditors and, in particular, highlight potential bad or doubtful debts. The bank is much more likely to help you if you have made it aware of likely difficulties in advance. 7. Keep your bankers informed in advance Always consider the impact on the bank if a cheque, drawn by you, is presented when there are inadequate funds in your account to meet it. Remember that you may know that you will be paying in a deposit tomorrow which covers your cheque several times over, but your bankers do not. Remember that their concern may be the attitude of their 'head office' if they pay your cheque and end up embarrassed. Take your bankers into your confidence whenever the situation requires it and earn their trust. 8. Keep your promises Don't make promises to the bank unless you are confident that you can meet them. The banker-customer relationship is based on mutual confidence and trust. Don't undermine the relationship by carelessness Carelessness See also Forgetfulness, Irresponsibility, Laziness. Grasshopper sings through summer, overlooking winter preparations. [Gk. Lit. . It is easy to adopt a policy of telling the bank the good news and of omitting the things which you feel it may not wish to hear. The bank wishes (and needs) to hear the bad news as well as the good news. 9. Consider using two banks Weigh up the pros and cons of using more than one bank. This may fit in with the geographical spread--actual or proposed--of your business. It may inspire each bank to seek the remainder of your business more actively and on more favourable terms. It may provide you with an alternative source of help if one bank decides that it cannot assist you in a particular situation. Recognise that, whether you call it market research or 'shopping around', a good businessman will wish to be aware of what the range of high street banks is able to offer in the way of services. Visit them and ask--they will be glad to welcome you as a potential customer. Be sure to make your purpose clear and avoid leaving the impression that you are ready to close your account with X bank and to open an account with Y-Z bank. Just as the bank will want to assess your business performance, so will you want to check out the bank, and look elsewhere if you are not satisfied. 10. View banks as organisations which want to do business with you See banks as institutions seeking business and wanting you as a customer. Reject the traditional view of the bank as an institution dispensing dispensing provision of drugs or medicines as set out properly on a lawful prescription. A prescription can only be filled, the drugs supplied, by a registered pharmacist, veterinarian, dentist or member of the medical profession. favours--lending you money if you had money and not otherwise. Challenge the bank to do business with you. See it as a source of information and help to be provided on a commercial basis, of course, but also on equal terms. Bankers and businesses need each other. Dos and don'ts for using your bank to the best advantage Do * See the bank as providing a package of services. * Work at creating a relationship with your bankers which will enable you to take full advantage of all the services available. * Keep yourself informed about developments in the banking sector as a whole. * Show them your business as a complete entity, warts and all. * Take them into your confidence and be frank with them, always as far in advance as possible. Don't * See banks only as a source of overdrafts--explore the whole range of services available. Overlook the possibility of having your private account in another bank to give you a 'foot in a second camp' Useful Reading Book Your bank: how to make it work for your business, Iayn Clarke Clarke , Arthur Charles Born 1917. British writer, scientist, and underwater explorer noted for his stories of space exploration. His works include 2001: A Space Odyssey (1968). and Penelope Kimber London: Kogan Page, 1998 Journal articles SMEs the new code for lending, Mike Brown Chartered Secretary, Aug 2001, pp20-21 Businessman's guide through the money maze maze, detail of landscape gardening based on the Greek labyrinth, consisting of intricate paths or alleys lined with high hedges and having a center and exit difficult to find. It was a prominent feature in the formal English gardens of the 17th and 18th cent. , Malcolm Brown This article is about the English footballer. For movethe Australian rules footballer, see Mal Brown. Malcolm Brown (born 1956 in Salford, England) was a professional footballer, who is remember mainly for his contributions at Huddersfield Town in the 1970s & Management Today, Nov 1995, pp128-130, 133-134 Useful address Financial Ombudsman ombudsman (äm`bədzmən) [Swed.,=agent or representative], public official appointed to deal with individual complaints against government acts. Service, South Quay QUAY, estates. A wharf at which to load or land goods, sometimes spelled key. 2. In its enlarged sense the word quay, means the whole space between the first row of houses of a city, and the sea or river 5 L. R. 152, 215. Plaza, 183 Marsh Wall, London E14 9SR Tel: 020 7964 1000 www.financial-ombudsman.org.uk Thought starters * Your bankers declare 'they are happy with you'. Are you happy with your bankers? * What bank services are available which you do not use? * Don't you like your customers to keep you informed? * What would you do if the bank suddenly said 'no'? |
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