What is Business Banking? Types of Business Banking Products!

 Business Banking: Business banking is a company's financial dealings with an institution that provides business loans, credit, savings accounts, and checking accounts, specifically designed for companies rather than for individuals. Business banking occurs when a bank, or division of a bank, only deals with businesses. A bank that deals mainly with individuals is generally called a retail bank, while a bank that deals with capital markets are known as an investment bank. There are some banks that deal with both types of clients. Business banking is a range of services provided by a bank to a business or corporation. Services offered under business banking include loans, credit, savings accounts, and checking accounts, all of which are tailored specifically to the business. Banks are able to offer business, retail, and investment banking services under one roof.

Understanding Business Banking: Business banking is also called commercial or corporate banking. Banks provide financial and advisory services to small and medium businesses as well as larger corporations. These services are tailored to the specific needs of each business. These services include deposit accounts and non-interest-bearing products, real estate loans, commercial loans, and credit card services. Banks may also offer asset management and securities underwriting to their corporate and business clients. In the past, investment banks and retail/commercial banks were required to be separate entities under the Glass-Steagall Act—also known as the Banking Act of 1933. That changed in 1999 after parts of the act were repealed. Under the new rules, banks could offer business, retail, and investment banking services under one roof. Please visit this link Commercial Loans and know more about Business Banking & Types of Business Banking Products.

Types of Business Banking Products: Commercial banks cater to a wide variety of clients—from startups to small and medium-sized businesses (SMBs) and large corporations with different needs. Business banking products and services are specifically designed to meet the diverse needs of these businesses. Most commercial banks offer the following business banking products.

Business Checking Accounts_ A business checking account is a type of bank account that lets you store and move your working capital around. Through it, you can make deposits and withdrawals, write checks, process automated clearing house (ACH) payments, and make purchases and cash withdrawals using a debit or ATM card for your business-related transactions. Having a business checking account is important, especially if your business needs to make regular payments to suppliers or vendors. These accounts typically have associated costs, although you can find some free business checking accounts from digital banks.

Business Lending & Loans_ Business lending and loans are designed to give you access to funding and working capital for your unique business needs. Business loans differ from personal loans because they are specifically intended for business purposes. Common business lending products include SBA loans, business lines of credit, merchant cash advances, commercial mortgages, and equipment financing.

Business Credit Cards_ A business credit card is a credit card intended for business use. By using one, you can build business credit and improve creditworthiness, which gives your business access to better financing opportunities in the future. Having one can also help you keep your business and personal expenses separate.

Business Savings Accounts_ As opposed to business checking accounts, which are designed to hold working capital, business savings accounts let you store excess funds for future use and allow you to earn a small amount of interest, making it a good place to park your extra money. In most cases, business savings accounts allow you to access your funds whenever you need them easily. However, most banks limit fee-free withdrawals to six per statement cycle.

Credit Unions_ Credit unions are nonprofit organizations owned by their members. They focus on creating specialized services that cater to the needs of their membership base. As a result, credit unions usually offer lower fees and higher rates. To join a credit union, you usually have to meet specific criteria, such as living in a specific location, working for a particular employer, or having family members who are already members.