Home Banking Banking Business: Definition & Eligibility

Banking Business: Definition & Eligibility

by Arpita Wadhawan
Banking Business

Ever since banks have evolved to the modern institutions that they are today, from being assigned receivers of valuable assets for storage – they have certainly grown in size, functionality, and responsibility. These days, banks no longer function just for individuals alone but serve companies and various organizations as well. In fact, when it comes to the banking business, you will find that certain banks have been set up for the sole purpose of funding loans to companies, investing in various projects, tracking, and monitoring any such investment and even helping the government of the day with requisite help on various infrastructure projects as well. For example, if you are operating an export or import company and need to approach the banking industry, for loans – you would be directed to check in with the EXIM bank and follow their suggestions for sourcing the required funds.

Fees

This depends more on your bank; just know that different banks charge different rates for business accounts. So, If you have set one up, then you should know that the bank usually levies a small transaction fee per transaction. Granted that the amount in question is quite small, but business banking is all about the frequency of transactions. For example, if you use your banking business account to conduct ten transactions in the space of a month, then each one of those transactions would be levied a small charge as you used your business banking account for the same. But if you were to use the same account to conduct over thirty transactions from the same banking business account, then the charges would work to a sizeable amount. But the good news is that there are various things that you can do to reduce these extra charges.

Eligibility:

Banking business accounts are not granted for everyone who walks in off the street – you would still need to meet the basic criteria. Your business must have been established a few years back and that you have a healthy balance sheet. Furthermore, your company must be legitimate and have a valid license to operate as well. There may be additional requirements that you would have to meet but these basic ones are downright essential.

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