Banking Services That Can Help Business Growth And Expansion

Business growth and expansion are some of the common goals of business owners. Surely, by growing their business, they can obtain better profits that can help improve their business reputation. On the other hand, business expansion allows business owners to gain better benefits which can help them increase their profits. However, achieving these goals are quite hard most especially if you do not have a solid plan. Because of this, some business owners seek for services that can help them. Luckily, banking institutions like HSBC can provide you with amazing services that can help you grow and expand your business. Below are some of the following.

Working capital solutions

One of the main services offers by banking institutions to help business growth and expansion is working capital solutions. With these solutions, business owners can manage cash and trade flows more efficiently. Not to mention, opting for working capital solutions from banks can help you reduce debt, expand your business reach or enhance your balance sheet. As a result, you can accommodate your financial needs properly.

Payments system for local and international transactions

The next service banking institutions offer that can help improve business growth and expansion is payments systems for local and international transactions. When running a business, you most likely deal with local and international clients. Therefore, there are some issues that may arise in your transactions. Luckily, with the help of banking institutions, business owners can make use of payments systems for local and international transactions. Apart from making your tasks easier, payments systems can also increase your security as well as reduce overhead expenses like expensive charges or even legal problems.

Risks management services

Another banking service that can help business owners improve their growth and expansion is risks management services. Risks always occur in ay business which can surely affect your finances. That is why some business owners are looking for ways to easily manage these risks. Fortunately, banking institutions these days offer risks management services. These services allow business owners to handle, control and manage these risks properly to deliver positive impact.

Solid investment strategy

Lastly, banking institutions can also provide a solid invest strategy for business owners to help them grow and expand their business. By working with banking institutions, business owners can find the right investment channels which will allow their business to choose this smarter path on how to multiply their returns from existing efforts.

With these amazing services from banking institutions, business owners can improve their business performance and increase their profits easily and efficiently.

About the author: Vincent Porter is a writer and a follower of HSBC. It is a banking institution that offers reliable banking services. In addition, HSBC also offers other services to help business grow and expand.

The Benefits Of Efficient Corporate Liquidity Management

By Delfin Notele – Content Info Resource from business.hsbc.com.qa

Liquidity is indeed a crucial financial concept for any company in any industry. This pertains to the amount of cash it has on hand, or perhaps that it can generate for a short time frame. This is a significant indicator of the overall financial health of the company. It must be capable of settling debts easily or perhaps doing all of its financial obligations whenever a crisis arises.

During the recent global financial crisis, the need for efficient corporate liquidity management gained attention. The norm was for organizations to build a very strong relationship with just one banking institution that can manage their cash management and funding requirements. But the crisis showed just how serious the impact could be on enterprises when their banking provider collapsed, and how lending by such institutions could be cut short. Thus, corporate treasurers must rethink of their liquidity management strategies so they can efficiently reduce risk as well as optimize the cash they have.

Apart from that, corporate liquidity management concerns other important functions like dealing with credit lines, managing debt capacity, and using derivatives for hedging. The result them would be a higher level of financial flexibility that will allow companies to sustain their operations at the best possible level.

Benefits Companies Can Enjoy With The Right Liquidity Management Solution In Place

• Aggregated Balance – If the aggregate cash position increases in size, there will certainly be better interest terms.
• Stable Balance – The volatility of the overall net balance can be reduced when multiple accounts will be brought together in a bigger liquidity structure. This further means that unexpected cash flow events will be absorbed better and cash on hand can be distributed across investments a lot easier.
• Consolidated Balance – The cost of maintaining cash deficits and surpluses can be minimized, if not, eliminated.

But apart from these benefits, a company can likewise enjoy other perks. These include improved counterparty risk management, a decreased dependency on credit facilities, and better cost and time savings management.

Different Techniques For Efficient Corporate Liquidity Management

Cash Concentration – This is considered the highly recommend option under physical consolidation. This is otherwise known as zero balancing or physical cash pooling. It works by making transfers between the master account and subordinate accounts. Aggregating the balances physically is the purpose of this technique.

Notional Pooling – This is under notional balance consolidation. It works by making an interest calculation on designated accounts. This technique will help maintain the original ownership structure due to the fact that there is no physical movement of funds.

Interest Enhancement – This is also under notional balance consolidation. It is somewhat similar to notional pooling wherein there is no physical movement of funds. The difference is that this technique applies preferential pricing on various accounts based on pre-determined criteria, which is often based on a net aggregate balance threshold.

Benefits Of Choosing The Best Bank To Open A Business Account

If you want to become your own boss, you may achieve financial freedom. Along with this, you may create a real career for you.

Bear in mind though that being a business owner is both challenging and exciting. The most exciting part is that you can capitalize on your creativity, be in control, and enjoy what you are doing. On the other hand, the daunting part is the many requirements that you must meet to make your new enterprise operational based on the standards of the industry you have joined.

And when it comes to requirements, you may need to open a business account. Experts emphasized that this is a must, most especially when you need to maintain a complete separation of the funds you use for business activities with that of your personal purposes. If you make the wisest decision in terms of choosing the best bank to open a business account, you make a huge difference in how you manage the financial movements of your business.

Why You Must Open A Business Account In The Best Bank

Choosing the best bank to open a business account is the general rule to follow here. Bear in mind that not all banks are created equal. There are banks that your fellow entrepreneurs prefer and recommend in terms of business loans. There are also those which are not offered by small local banks. Be very meticulous in choosing which bank to work with. Here are some of the advantages of opening an account with the most respected and competitive banking institutions:

1. You will be able to trade directly with organizations having a good financial status and recognizing the excellent financial status of your business through its open account solutions.
2. If you are selling on open account terms, the bank has receivables financer products, which can deliver the collection and financing services you need. Experts have emphasized that these products will help you in keeping your business “consistent” so that your business operations and relationships are well protected.
3. The bank will have reliable supply chain solutions. These solutions are meant specifically to minimize your expenses, optimize your working capital, and have better control and visibility over receivables.
4. It allows you to take full advantage of export and import finance even without an underlying documentary credit, which makes the process easier and simple for your operations.

When your bank covers all of these, then you have found the best where you can open an account with and you can be very sure that your enterprise is in good hands.

About the author: Leonard Monroewe is a business owner who just started his business in the UAE. He is very thankful to www.business.hsbc.ae for providing him different information and tips about proper cash management.