subject: Online Business Banking & Corporate Banking Services with SME Banking Accounts [print this page] Online Business Banking & Corporate Banking Services with SME Banking Accounts
Corporate banking involves banking activities done by large companies or organisations. These activities may include borrowing a loan or other large financial transactions. A number of companies today prefer corporate banking as these banks focus mainly on loans and investments of large companies. Other terms for corporate banking are business banking and commercial banking.
As your business grows, the working capital requirements change, making it difficult to keep pace with the increasing financial demands involved in making your business a success. This is why banks today have introduced flexible business-banking solutions to take care of your working capital and short-term funding needs.
Banking is also specifically done for Small and Medium Enterprises (SME). As per the Micro, Small and Medium Enterprises Development Act 2006, enterprises are broadly classified into micro units, small units, medium units and large units depending on the investment in plant and machinery.
So what does SME banking mean? It simply means providing banking solutions for small and medium enterprises. A bank that transacts in SME banking aims at becoming a reliable business partner of SMEs, to help them in funding their business growth needs. The bank goes ahead to provide the SMEs with transaction accounts, trade finances and other financing products. It also offers them a wide array of products such as unsecured loans, working capital as well as loans to finance purchase of commercial vehicles and construction equipments.
How does one go about choosing a good SME bank? Try going in for trusted names that have a reputed background. Also check how long they have been in the business and how many SME accounts they have handled. A good bank would be one that offers medium term financing, up to about five years to finance fixed assets, as well as short term financing, for at least a period of 360 days to finance working investment needs.
There are usually three ways to apply for an SME account. You can apply online, call or send an SMS, or leave a number and wait for them to return your call. Most would prefer applying online as it easy, convenient and quick. Also, while applying online for an SME account, there are various details that need to be filled out about the business such as the business segment and turnover, number of years in the business, facility type (overdraft, short-term, bank guarantee, letter of credit, etc) and finally the facility amount required.
