Banks of all sizes in Singapore, from small businesses to multinational organisations, are served by business banking, also known as corporate banking. The US was the first to refer to investment banking as “corporate finance.” Since they provide several linked services to financial institutions and corporate businesses, corporate banking is a significant source of profit for the majority of banks. Corporate banking institutions like DBS provide corporate loans like:
- · Import loans
- · Export loans
- · Guarantee for the lender
- · Equipment loaning
- · Loans and other credit products
- · Real estate for business
- · Loans for trade
- · Loans for employers
Businesses can finance wellness plans, payroll facilities, and pension schemes thanks to the services outlined above. Corporate clients get underwriting for initial public offerings (IPOs) and management of asset services.
A few advantages of corporate finance and banking services
Corporate finance services provided by banks enable other firms to take advantage of current sales and inventory, improve marketing strategies, expand into new product and market segments, strengthen connections and networking, mitigate risk, and optimise working capital using a corporate loan Singapore banks offer. Corporate companies can also obtain specialised services to fulfil certain business needs that will enable them to satisfy particular demands, such as:
- Accelerating the process of entering a new market.
- Improving current market positions to increase sales and market share.
- Putting money back into the company
- Releasing cash flow
- Reduction of sellers’ and purchasers’ payment risks
- Assisting important counterparties to improve connections
- Assisting with reconciliation to address cash flow issues and increase revenue
- Digitising the management of documents
What characteristics distinguish corporate banking?
As previously indicated, corporate banking is a subset of business banking that consists of various financial services available only to businesses. The following are the primary traits of a corporate banking organisation:
- Clientele: Large corporations as well as small to medium-sized enterprises are served by the corporate banking industry. Corporate finance companies provide them with services and financial support.
- Authority: After receiving approval from the firm’s board of directors, a business looking for financial support from a corporate financial institution may create an account. The treasure must be approved by the company’s board of directors by formal vote or corporate resolution.
- Liability: All corporate content of accounts belongs to the firm, not the board members, as corporations are recognised by law as distinct legal entities. It demonstrates that the board of directors does not have access to the contents of the corporate accounts, but the corporate accounts do have some powers over the business accounts.
- Credit rating: An organization’s credit history is revealed through the operation of a corporate account. It affects the company’s loans, evaluation, and share price, as well as the interest rate and other factors.
The primary sources of financial expansion for business and industrial activity are banking and corporate services. They provide businesses with financial services. Their primary goals are to maintain the value of the currency, encourage the creation of financial institutions, and accelerate economic expansion. Their services are vital to a nation’s economy since they have a big impact on corporate expansion.
