What are the Different Types of Corporate Banking Services?

D. Nelson

A corporate bank is also known in some contexts as a commercial bank. This is a bank that provides a number of financial services, normally to larger corporations and businesses. Among these services, one might expect to find loans, lines of credit, cash or treasury management, and the safekeeping of documents and other valuables. Because the role of corporate banks varies from country to country, it can be difficult to pin down a definitive set of corporate banking services.

When selecting a bank to handle a corporate account, it's important to ensure that the institution is FDIC insured.
When selecting a bank to handle a corporate account, it's important to ensure that the institution is FDIC insured.

One of the most common corporate banking services is the lending of money. Loans can take a number of different forms. In some instances, loans may occur through the implementation of overdraft fees. In other words, an individual or organization may withdrawal more money from an account than is available. In return, the bank may collect a fee.

Another method of lending common among corporate banks is the installment loan. This is a loan in which the bank lends a large sum of money to an individual or organization. The borrower of the money repays the loan with interest in a fixed number of scheduled payments.

Lines of credit are also often included among common corporate banking services. A line of credit is a maximum amount of funding that an individual or organization may borrow from a bank. The borrower has what may be thought of as an account that includes that maximum amount that may be borrowed. The borrower pays interest on all money that is borrowed from the line of credit account.

Many corporate banking services include cash or treasury management. This is a service in which the bank may offer larger businesses and organizations accounts and other customer services related to the keeping and transferring of funds. These services may include the ability to transfer funds from one account to another online. They may also include armored car services, which provide the safe transportation of cash, and account balancing services.

Finally, one of the most often utilized corporate banking services involves the safe keeping of documents and other valuables. Many corporate banks will provide customers with safe deposit boxes. These are secure containers that are generally kept within larger vaults are safes. Many banks have special keys, codes, or signatures that allow on designated bank employees to retrieve the contents of the safe deposit boxes.

In some countries, corporate banking services may also offer capital market services. These are services in which businesses and organizations may invest in financial instruments such as stocks and bonds. These investments are considered long-term funds with increase in value over time.

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