Franchising Small entrepreneurs need checking accounts too

Keeping business funds separate from personal account is the first tenet of managing finances of your family-owned small business, according to private development banker Elizabeth C. Umali.

Umali, a senior officer with Planters Development Bank says many start-ups, family-owned and micro businesses lead to failure ‘because the inexperienced owner spent the funds needed to finance the business to pay for household needs.”

It turns out that many entrepreneurs neglect to keep separate accounts because of the high maintaining balances most banks require for a basic checking account or savings deposit. And that isn’t all that small and micro businesses face.

Nicanor Cruz who owns a home-based upholstery service recently lost the credit line with his long-time supplier, who now requires wholesale buyers to write postdated checks as security. Thirty-five year old Cruz, a former factory hand turned micro entrepreneur, has been in business for 10 years. He admits to having occasionally drawn money form his business funds and he does not keep a checking account.

Umali, who has been working with small and medium enterprises (SMEs) for Planters Development Bank for more than 20 years, says there is a gap in financial services for SMEs, which comprise nine out of every 10 businesses in the country according to official figures.

Planters Development Bank seeks to help narrow this gap with the Plantersbank Business Club checking account. For a minimum deposit and maintaining balance of P10,000, the interest bearing Plantersbank Business Club checking comes with FREE personal accident insurance coverage up to P2 million and add-on non-financial benefits to match the needs of the entrepreneurs of today.

Other features are ATM Card Facility and Passbook for monitoring of your account and convenient anytime access to your accounts via Megalink ATMs; FREE personalized B Club Email account with 2MB storage plus priority listing in our email list for SME news, bank announcements and new product offers; and NO COST subscription to SME BizLink eNewletter, the weekly online publication of SME.com.ph, the online hub managed by Plantersbank and the World Bank’s International Finance Corporation.

For more information about Plantersbank Business Club checking account and other financial services for small and medium enterprises, call Plantersbank Direct (02) 8871000 or (02) 8121091; email infor@plantersbank.com.ph or log on to www.plantersbank.com.ph.

Source: BLine Vol. 4 No. 1 2006 Issue at www.sme.com.ph

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