What Are the Services Offered by Banks to Business People?

By: alexander

Aside from borrowing to expand or bail their enterprises out of imminent financial ruin, there are other banking services which are offered by financial institutions. Therefore, having a business account is important for every business person worth their salt.

Business banking is one of the many services that financial institutions offer business owners. A business account belongs to the company, not the individual even if they own the business. Business banking is a financial institution’s dealings which involve monies that a company banks with them. The bank or financial institutions provide not only loans but also credit, savings and checking accounts for companies or business establishments.

Understanding Business Banking

Banks that mainly serve individuals are known as retail banks, while those that are involved with capital markets are referred to as investment banks. The two entities were previously working separately under the terms spelled out in the Glass-Steagall Act. However, some changes have been made to the act such that a bank can now deal with both retail banking and investment banking.

Business Banking Services

Businesses enjoy a variety of services via business banking. The following are some of the finance options and cash management services that fall under the mantle of business banking in addition to savings and checking accounts:


– Cash Management

Many businesses and companies would not be in operation without the capital provided by financial institutions. Cash management helps businesses to make greater accomplishments in their business operations. Cash management has everything to do with keeping track of monies going in and out of the business or what is better known in commerce lingua as receivables and payables, as well as cash in hand.

Banks ensure that businesses have access to Automated Clearing House as well as electronic payment options to make money transfers faster and more efficient. They also encourage and avail systems for transferring money from idle checking accounts to accounts that earn an interest. This way, any leftover money can be put to profitable use. What is left in the checking account is what the business needs for the daily running of the business?

Banks also link up businesses with a personalized online platform that allows them to follow their cash dealings in real time.


– Bank Financing

Financing is the main source of capital for business enterprises. Even the largest conglomerates cannot run efficiently without a bank loan from time to time. The amount of financing offered depends on the needs of the enterprise that is borrowing. Banks offer the following types of loans to businesses:

  • Fixed-term loans
  • Short-term loans
  • Long-term loans
  • Lines of credit
  • Asset-based financing

All these are available to business owners dependent on factors like the size of the enterprise as well as the worth.


– Equipment Financing

Businesses need not struggle with getting the cash they need to buy essential equipment. Banks help to finance this via fixed loans or equipment leasing.

It is important to note that some banks only lend to certain industries, for instance, real estate, agriculture or construction. Therefore, when you need business banking services, you can check up on the banks that support your enterprise.


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