- Article
- Managing Risk
- Business Resilience
The New “Available Balance” Display for Greater Clarity of Funds
In day-to-day business operations, having an accurate view of cash flow is vital. If you rely solely on your "Ledger Balance" to verify incoming payments thus arrange outgoing payments, you may unknowingly expose your business to financial loss.
As business transactions often involve clearing processes, to confirm whether funds are available for withdrawal, you should always refer to your "Available Balance" instead.
Ledger Balance | Available Balance |
|---|---|
It records processing / pending deposits like uncleared cheques or overseas wire transfers that are not yet cleared (excluding foreign shares and investment service receivables). Therefore, it does not mean the funds are ready to withdraw and use. | This is the amount you can withdraw from your account, including any overdraft facilities (if applicable). |
Risks of relying only on "Ledger Balance"
If a business uses funds for operations before confirming that the funds have fully cleared, it may face two key risks:
- Returned payment: If a customer deposits a cheque or makes a remittance that is yet to be cleared, Ledger Balance may indeed increase. Still, if the business assumes funds are already available and thus proceeds to deliver goods, it may incur losses if the transaction later fails to clear.
- False refunds: Fraudsters may deliberately deposit an invalid cheque for an incorrect amount, before claiming it to be a mistake and then request immediate refund of the difference. If the business refunds funds without verification, it may suffer losses when the cheque is subsequently returned.
New Display: "Available Balance”
Now, when you make third-party transfers via HSBC Business Internet Banking or the HSBC Hong Kong Business Express mobile app, your "Available Balance" will be displayed via “Account Overview” and “Third party account” payment page. This helps strengthen verification and anti-fraud checks, while reducing the risk of transfer failures thus unnecessary financial costs.
Log in to HSBC Business Internet Banking or the HSBC Hong Kong Business Express App now and check this out.
