Savings on bank margins: SME Pty Ltd
The following hypothetical case study illustrates the potential benefits of our bank fee and margin review service.
SME Pty Ltd had the following facilities:
- Loans with borrowing costs tied to Bank Bills plus a margin
- Cash balances with interest on daily balances
- Overdraft facilities to meet unexpected cash needs
- Electronic payment systems (direct debits and credits)
A review of facilities and management resulted in:
- Loan costs reduced by 0.25% p.a.
- Increased returns on cash balances of 1.5%
- Overdraft replaced by stand-by facility, saving 1.75%
- Transaction fees reduced by 75% per transaction