Business Banking

Business banking services are available for mid-market business. Their most essential aspect is to offer checking accounts. Other services include providing savings accounts and money market accounts. This type of banking is different from retail banking, which involves offering financial services to individual consumers. Nevertheless, many banks provide retail and business banking services to their clients. Further, some offer investment banking services, including underwriting bonds, to businesses.

The bank raises funds when it collects deposits from businesses through checkable deposits, time or term deposits, and savings deposits. In turn, it is able to offer loans. Further, a business bank buys government and corporate bonds. In general, its main liabilities are the deposits, and its main assets are the bonds and loans.

More specific business bank services include:

• Issuing bank checks and drafts
• Processing payments through online banking, telegraphic transfer, and so forth
• Lending money through installment loans and overdraft
• Offering letter of credit, performance bonds, guarantees, and other forms of off balance sheet exposures
• Storing documents in safe deposit boxes
• Aiding with sale, brokerage, and distribution and offering advice on unit trusts, insurance, and other financial products