Business Banking Your business banking arrangements will affect the way that you can function in today’s market place. It is important that both parties get a fair deal from any arrangement entered into both in terms of cost and efficiency. Most organisations prefer stability in respect of business banking facilities, which can be good for both parties, providing you find the time and resource needed to ensure that the fair deal for both parties continues to be relevant. All businesses should review any banking and funding arrangements regularly. The use of "Bank Account Functionality" can make a difference to efficiency in the areas of bank reconciliation and cash flow monitoring. Electronic Banking Electronic Banking is becoming more accessible to small businesses, whether it is via the Internet or the banks bespoke packages. In today’s world we all have to be in a position to respond quickly and positively and the various electronic banking services will facilitate this. This banking activity links closely with cash flow requirements and will enable the reporting of cash movements very accurately on a daily basis. In today’s market suppliers may require payment before the release of goods and materials, in the past the banks would have transacted this but at a cost. Now business is in a position to make it’s own funds transfers and at a more cost effective rate. Funding Arrangements Funding is an area that impacts on all organisations, it can take many forms including share capital, bank loans, overdraft facilities, factoring and Securitisation. In the case of Securitisation the detail behind the process can be very exacting but the potential is very promising for some companies. However help and resource should be planned and thought out when evaluating this area of funding. Foreign Payments and Receipts More businesses are now trading with countries outside the UK, which leads to the need to accommodate foreign payments and receipts. The use of electronic banking will facilitate making payments, but serious consideration and review should be given to holding foreign currency accounts with your bankers, the most common being euro and USD. This is particularly useful when payments have to be made and receipts come in for sales ledger or accounts receivable in currencies other than GBP. Understanding this activity and applied professionally could be cost effective and go some way to minimise any foreign currency exchange movements. In some situations it may even be worth exploring the possibilities of using currency SWAPS and or Hedging. | 
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