Bank Interest/Charges Review for Business
Our Financial Health Checking system looks at the following areas:
Bank Charges: We analyse the structure of our clients' bank accounts and advise them on how to reduce their charges. This review incorporates both quarterly and ongoing charges.
Interest Costs: We analyse the borrowing costs and show where savings can be made either by restructuring the borrowings at more competitive rates or re-negotiating the structure of any loan in light of other issues which may arise in our review. For example, the issue of utilising an off-set arrangement with credit funds held in current accounts is very often an area where re-structuring is necessary.
Credit Interest: On occasions, certain business clients would be in a position to obtain a stream of income from the use of credit funds. This not alone relates to deposit resources but also through off- set arrangements. A primary example of the type of client who would benefit in this area are solicitors. To date, we have conducted numerous reviews for solicitors' practices and the benefits to them have been considerable.
Bank Account Structure: In a number of cases, the structure of the bank accounts themselves and the way they are run on a day-to-day basis can become a major cost factor. We show how best to operate these accounts and maximise the system/minimise the cost to the client. Over the last five years, we have had a considerable number of notable successes among the hundreds of clients who have had such a review carried out. It must be stressed that all savings made as a result of our report are annual savings. A review such as this is beneficial for both small and large businesses/companies.
Review Procedure....
Bank interest/charges review:
- An initial discussion or review of a client's banking arrangements takes place to ensure that undertaking a Financial Health Check will be of benefit to them. At no time will we undertake a review if the potential savings are not obvious to us. Subsequent to identifying possible areas of benefit, the client will then agree to proceed further with the review.
- Our review generally covers a period of 12 month's banking (usually coinciding with the charge out for interest/charges by the bank). It is necessary for us to obtain bank statements on all relevant bank accounts/borrowings, etc., correspondence from the client's bank relating to arrangements on charges/overdrafts, etc. and any other relevant information that we may require.
- On receipt of this data, we will analyse same, utilising a number of computerised models (including an interest checking program). This analysis will focus on the areas previously outlined i.e. interest/charges, etc.
- A report is then prepared for the client showing an analysis of each bank account, areas where problems exist, verification of the savings that can be made and recommendations.
- A Recommendations Summary is included as an action plan for the client to undertake.
- On completion of the report, we will review same with our client, ensuring that everything in the report and the action to be undertaken thereafter is understood.
- Our recommendations will fall into two categories i.e. changes that the client can effect without negotiation with his bank and areas which require discussion with their bankers.
- Throughout the whole process of negotiation/re-structuring of arrangements, we advise our clients.
- Our fees include the preparation and completion of the report, subsequent meetings which would be necessary and various advice which the client may require.
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Wed, 10 March 2010 
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