What is business banking?

What is business banking?

- in Business Banking
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Businessman coming to an agreement

When we talk about business banking, we are underlining a lot of dealings in a business. The term is a quite a broad one, encompassing loans,credit,bank accounts and so much more.  The term covers dealings   of abank, its division and generally speaking a commercial bank. Forget about the individuals and only limit yourself to the corporate. Every aspect of business of the bank is what we call business banking.

Services

A first time visitor to a bank expects a lot .There is a wide range of services one would expect to receive. For instance, the client would want to open an account with the bank. There is a section of the bank where one can open an account.

The client may also want to receive a loan. The processing of the loan will depend on the dealings that the client has had with the bank. For instance, they will check theclient’s financial record to find out if the client meets the threshold for a loan. One of the roles business banking is to facilitate loans to clients and other business entities.

Credit and checking services

Credit services forms the core of the various banking services that are offered by commercial banks. The latter is the other name for the banking service. When small businesses are in need for credit, they have no one to turn to except the big banks. The credit facilities that are availed help in the liquidity of the SMEs. The checking services on the other hand have much to do with the use of checks to facilitate payment.

Savings

Small businesses or SMEs have to find a way of securing their cash and see it grow.Members’s deposits have to earn interest. These small businesses look up to the commercial banks to grow their savings. It would thus be correct to say that thebanks are used for securingthe savings on behalf of the SMEs.

Online banking services

There is need for electronic banking online. This is one of the most important   services offered by commercial banks to their clients who are the small businesses.

Overdrafts

These are short term lending facilities that are offered by banks to small and medium enterprises. The facilities are availed to these companies against their financial dealings with the bank.

Investments

Banks are not just there as entities for securing cash for their clients. They have a way of growing the cash to an investment portfolio. It would thus be correct to say that they help in creating investments.

Call/notice accounts

For the small businesses which are looking to open call or notice accounts, this is facilitated by the big banks.

Deposits

Large deposits are put in current or fixed deposit accounts of the commercial banks. This is an impotent aspect of the banking service to companies.

Business financing

Some small businesses would struggle a lot without business financing. This is where banks come in and offer financial support.

Lastly, they offer asset financing to companies.

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