While bank charges are often viewed as being of somewhat lower importance, there are significant variations in charges across banks and, reflecting the value of the overall bank relationship, these are often amenable to substantial reduction without stressing relationships. Principal sources and levels of costs are identified, and relevant benchmarks are identified for re-negociaion.
Bank Charges can be explicit, e.g. transactions charges or implicit in terms of allowances for credit balances, covenants for variations in loan draw downs, commitment fees, in currency pricing, in set-off arrangements or in delays in clearing funds . All such charges need to be evaluated and minimised.