Learn about what is a corporate banking definition and its importance, how to open a bank account, and its benefits for customers.
The Definition of Corporate Banking
Corporate bankers provide services to corporations, including the issuing of bonds, stocks, cash management, underwriting, and funding. Most financial institutions generally keep several units to handle needs the business customer has, separate from the retail banking activities, or consumer activities, of an individual account.
How to Open a Corporate Account
Commercial banks usually provide accounts like this. These can be called business-to-business services.
To begin this relationship, it is essential that you select one bank, then take with you a certificate of incorporation issued by the State, just like for a commercial banking. It is also necessary for registering a federal employer identification number. You might not need an EIN for taxes purposes, but you might want one for banking purposes. From a business perspective, you would have to have passed the business bank resolution which could specifically say bank accounts.
Benefits of a Corporate Bank Account
There are a lot of benefits you gain from having an appropriate business bank account. They offer deposit services, along with commercial loans and property funding for your corporate operations. There is the possibility of having multiple financing accounts to meet different needs when your company starts growing. Corporate banking customers can even take advantage of it for getting a little finance in times of any financial crunch.
Customers get a special treatment while making transactions. They can secure ad-hoc, tenor business loans to fund commercial financing and operations. Interest rates on corporate banks may be far more affordable as well. They may also get easy access to online banking, credit cards and more banking services.
The bank provides the service by assigning staff that are specially trained in financial advice and top banking solutions. Such staff will directly handle the customer’s transaction account activity. These banks service customers separately from normal customers.
Learn More on Corporate Financial Services
Corporate banks provide various financial services including asset management, portfolio management, etc. Other services of a corporate bank include investment banking, capital financing, and business financing. Such banks can also act as a financial adviser, and can manage strategic investments and IPOs. They perform all these types of investment banking products for both small businesses and big corporations.