Best Products Offered By Commercial Banks To Their Customers



Commercial banking has come up as a solution to the financial constraints of the people. Banking initially evolved as a measure to provide financial support to both households as well as big business houses. But over the time the banks have redefined the way it serves to people by introducing new types of products to meet up to the demand of the marketplace. There are many old products that are no more offered by the banks and the newer ones come with a myriad of benefits. Let’s take a closer look at the list of products offered by the banks to the commercial customers.

Project finance

Mega-corporations are always in the lookout for project finance loans from the banks. In this type of loan, the entire finance is done considering the project as an individual entity. Even if the loan faces a big ditch because of the failure of the project the parent company which sponsors that particular project holds less liability. For example, if a bank does funding for a big project that was initiated by a well knownCorporation and the project turns out to be a big failure the bank will only have access to the assets that come under that project. The Corporation won’t be liable for the losses that the bank has incurred because the project is a separate entity over here.

Syndicated Loans

Sometimes a company is so huge that a single bank can’t cater to their debt requirement. In this case,several banks come together and form a syndicate to cater to the company’s loan requirement. In this case, one bank can play the leading role to coordinate swiftly with the other banks.

Leasing

Leasing has become the most preferred financial method for many companies as it gives control over the asset without the need to leverage the balance sheet of the company. But it’s important to know that banks do not fund pure play leases of the operational category.

Industrial Loans

In order to assist the mega-corporations in dealing with their debt securities banks provide monetary market services to them. The banks sell the debt market advisory product to the big companies for a fee. Earlier the primary business of banks seemed to face a decline, and in order to deal with this decline, they made special teams that deal with the debt securities of the big companies.

Foreign Trade Financing

Trade has crossed the borders which havearisen the need for special financing. Banks hold expertise in multi-national financing,and they provide export financing, letter of credit, bank guarantee and many such services that promote foreign trade.

Check out the list here and know which type of product will best suit your need.

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