Banking Beyond the Basics: Services Offered by Business Banks

Business Banks
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Business banking is an essential aspect of managing modern-day companies. When starting a business, entrepreneurs may require financial assistance from a bank to finance their company and keep it running smoothly. The banking industry offers several services beyond the typical savings and checking account, such as loans, credit lines, and additional banking products.

In this blog, we will explore the essential services offered by business banking, enabling entrepreneurs to make informed decisions about their banking needs.

  1. Business Loans: A business loan is a popular banking service offered to companies to help them grow and expand their operations. Business loans can be short or long-term, depending on the borrower’s needs, and provide different loan amounts, interest rates, and repayment terms. Business loans are popular because they can finance a new business, expand a successful company, or provide funding for unexpected circumstances. Business loans come in different forms, such as term loans, equipment financing, and SBA loans, each having unique advantages.
  2. Commercial Mortgages: Commercial mortgages are loans used to purchase commercial properties, such as retail spaces and offices, for business use. Banks provide commercial mortgages to businesses, with terms spanning from 5 to 25 years, with adjustable or fixed interest rates. Commercial mortgages help establish companies in specific locations, which can contribute to the business’s success. Property ownership allows companies to establish a substantial credit rating, and owning an asset can help close deals and conduct business efficiently.
  3. Merchant Services: Merchant services are a financial product that allows businesses to accept credit and debit card payments from customers. Merchant services provide access to card payment processing, including accepting, verifying, and settling payments into the business bank account. With modern technology, merchant services offer various payment methods, such as mobile payments, online transactions, and contactless payments. Merchant services are essential in the modern business world, where cash payments are infrequent and digital payments are king.
  4. Cash Management: Cash management services are a service offering provided by banks. It involves creating a cash management plan to avoid overdraft fees, save money, and maximize their earning potential. The service includes monitoring a business’ bank account, setting up automatic payments, and sending alerts to the business owner for low account balances. This service can assist businesses in managing their cash flow, improving financial security, and reducing losses from fraud and theft.
  5. Treasury Services: Treasury services refer to the vast range of financial services offered to corporate clients to manage and monitor their cash, risk, and liquidity needs. Treasury services include trade finance, cash sweeping, lockboxes, leasing, equipment financing, and foreign exchange transactions. These services enable businesses to operate globally and manage their finances to reduce risks and increase profits.

Key Takeaway

Understanding the services available from a business bank can help entrepreneurs make a more informed decision about which bank to choose. The services mentioned in this blog are just the tip of the iceberg. Banks can also provide additional services to businesses depending on their specific needs. Business loans, merchant services, cash management, commercial mortgages, and treasury services are some of the most common banking products that small businesses require to manage their finances. With the right support from the bank, businesses can thrive, expand their operations, and reach their full potential, making choosing the right business banking partner vital.

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