When it comes to choosing the best banking jurisdiction to open a business bank account online (or in person), knowing which corporate banking solutions and features are available is an important consideration.
Unfortunately, due to a lack of consistency across the industry, there’s a lot of confusion over which corporate banking solutions are available to specific business types at each bank.
In this article, we’re going to help resolve this problem by breaking down all of the available corporate banking solutions, the clients they’re available to, and which banks (in which countries) offer them.
Here’s a look at everything we’ll cover in this article…
Table of Contents
- What Are Corporate Banking Solutions and Features?
- Unpacking Corporate Banking Solutions and Features
- Can Your Business Access Corporate Banking Solutions?
- How to Choose a Bank That Offers the Corporate Banking Solutions You Need?
- How to Access Corporate Banking Solutions and Features?
- Ready to Open an Offshore Bank Account?
What Are Corporate Banking Solutions and Features?
Corporate banking solutions and features include credit facilities, asset financing, payroll services, treasury services, and more. Banks typically offer these solutions to large corporate clients. However, smaller businesses can access them as well. To do so, your business will need to meet certain criteria, such as annual turnover, monthly transaction volume, and more.
When looking to access corporate banking solutions for your business, you could have many or only a few banks to choose from. Ultimately, the number of available banks will come down to the profile of your business and the profitability of the bank.
In other words, to access corporate banking solutions and features, you need to choose a bank that will accept your business as a client. And, of course, they also need to offer the solutions that you require.
In this article, we’ll share how to find the best possible banking options for your business to unlock company bank account opening. And, in the process, we’ll also help you access the corporate banking solutions you need.
Before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE Business Banking Starter Guide. It’s designed to help your business find and open accounts with the services you need around the world.
Unpacking Corporate Banking Solutions & Features
Let’s start by discussing which corporate banking solutions are typically offered to corporate clients upon opening a company bank account. Then, we’ll take a look at how clients can use these features of corporate banking to extract more value from their banking relationships.
Generally speaking, corporate banking solutions refer to financial solutions that large businesses need to operate efficiently. Such solutions can range from the basic features of corporate banking like payroll and receiving client transfers, to more complicated requirements such as financing for capital projects, cash flow management, and international treasury services.
Popular Features of Corporate Banking:
- Credit Facilities
- Treasury Services
- Fixed Asset Financing
- Subsidiary Banking
- Sub Accounts
- Payroll & Employee Services
Here’s a closer look at the above corporate banking solutions:
Credit Facilities
Credit facilities are loans made to businesses in order to provide long-term access to capital. This allows a business to easily access capital whenever necessary, instead of applying for new loans each time the business requires access to outside capital.
Treasury Services
Treasury services include cash management services that banks offer large businesses. Such services can include liquidity management, foreign currency payments, escrow, and trade solutions. In some instances, banks also include payables and receivables in this category.
Fixed Asset Financing
Fixed asset financing (or asset financing) is a type of credit facility that banks provide based on collateralizing the fixed assets of the business. Such fixed assets often include machinery, inventory, accounts receivable, and similar sound assets. In most cases, fixed asset financing is used for short-term capital requirements as opposed to longer-term debt financing.
Subsidiary Banking
Subsidiary banking involves providing full banking services to subsidiaries of a parent or holding company. This typically involves international subsidiaries that are registered outside of the home jurisdiction. And, these businesses often operate in countries that the commercial bank would not normally serve.
Sub-Accounts
Sub-accounts are segregated bank accounts typically designated for a specific activity or division of the business. Such accounts can allow for transparent reporting, separating departmental spending, and even for enhanced security.
Payroll & Employee Services
Payroll and employee services for large businesses can also be coordinated by commercial banks. This can include monthly distributions, employee benefits programs, health care programs, and employee retirement programs.
Can Your Business Access Corporate Banking Solutions?
The features of corporate banking mentioned above are typically reserved for those businesses classified as corporate clients. And while many people think “corporate” refers to all businesses, that’s not the case.
In fact, in order to qualify as a corporate client at most commercial banks, your business must be generating at least US $25,000,000 per year. Though, in some instances, the threshold can be as high as US $100,000,000 per year in revenue.
Now, if you have a small business and you’re just starting, US $25,000,000 per year might seem like an astronomical number. But, that’s just a benchmark. And, depending on your industry, location, and growth trajectory, that number can be reduced significantly.
In other words, if your business is in a high-growth industry, your business is growing at a reasonable rate per year, and you operate in a transparent jurisdiction where commercial banks operate, you will have a better chance of unlocking corporate banking solutions even if you don’t meet the financial thresholds.
Of course, in order to successfully unlock financial services for your small business or open a bank account for an e-commerce business (or other types of businesses), you have to know which banks will accept your business.
How to Choose a Bank That Offers the Corporate Banking Solutions You Need?
When it comes to choosing the right bank for your business, there are many variables that you need to consider.
In fact, whether or not you can access the features of corporate banking you desire is just one of the variables you need to take into consideration.
Here is a look at some of the other important variables when choosing a bank for your business.
Variables to Consider When Choosing a Bank
- Jurisdiction of registration
- Jurisdiction(s) of physical operations
- Industry that your business operates in
- Jurisdiction(s) that your business serves
- Location of service providers, employees, and contractors
- Transaction volume and frequency
- Citizenship and residency of shareholders
- Citizenship and residency of directors
- Reputational impact of opening at a given bank
Of course, there are account opening requirements you need to consider as well:
- What is the minimum account opening deposit?
- Is there an account opening fee?
- Is there a minimum monthly fee?
- Can you supply the necessary supporting documents?
- Does the bank require you to open in person?
- And more
Finding a Bank That Wants Your Business
Yes, the bank also has to determine whether they want your business as a client. And, unfortunately, finding a bank that wants you as a client can be a long and frustrating guessing game.
What’s worse is that you usually have to go through the entire bank account opening application in order to receive a “no”.
As a result, you might apply to multiple banks that aren’t a good fit for your business in the first place. This can (and has) cost businesses thousands of dollars in preparing documents, authentication, travel, and more. Not to mention the time spent on preparing account opening applications.
Of course, you can skip this frustration if you know each bank’s client preferences. Such as their desired industries, preferred jurisdictions, and their internal “minimums” that they don’t publish publicly.
Fortunately, there’s a way you can get all this, and more…
How to Access Corporate Banking Solutions and Features?
If you’re ready to unlock the features of corporate banking for your business, you can obviously use the information in this article to start opening accounts.
Or, you can access one of our account opening services and get the help you need to quickly and painlessly access the corporate banking solutions and features you desire.
Each of our premium services helps non-resident individuals, foreigners, and their businesses open international bank accounts around the world.
So, whether you want to know which banks will accept your business, which offers the solutions you need, or you just don’t know where to begin, we can help.
Ready to Open an Offshore Bank Account?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…
+ Direct support from a team of banking experts
+ Direct introductions to your desired banks
+ Answers to your most pressing questions and challenges
+ Expert insights on which banks to choose & why
+ Plus, FULL access to our entire suite of account opening tools and intelligence!
And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.
Use this link to see how GlobalBanks Insider can help you successfully open accounts.
