Contributed by Jennifer Holloway, Managing Director, CIBC US Commercial Banking, Jennifer.Holloway@cibc.com
Let’s face it, most of us aren’t wearing the same pants we did when we first started in business. As we change and grow, our financial solution needs do as well. And while your bank may have offered everything you needed when you first opened your account, your needs may have changed over time, especially with the growth of your business. This is why we believe it is important for you—as a security industry professional—to understand the different types of financial products and services that are available.
Below are the most common types of financial services you should know about:
Commercial banking solutions
Commercial banks typically offer products and services that are specifically designed to meet the financial needs of businesses. While many of the products offered by commercial banks are similar to those offered to individuals by retail banks, such as checking and savings accounts, commercial banking solutions may also include:
- Merchant services (credit card processing)
- Global trade services (foreign exchange)
- Treasury management services (lockbox, ACH and wire templates, fraud prevention)
- Purchasing cards
- Interest rate protection
- Corporate lending and syndicated loans
- Retirement products and services for businesses and their employees
- Advisory services
Some institutions offer specialty services that cater to specific industries. For example, banks that provide services to the security industry may offer cash flow or recurring monthly revenue (RMR) financing solutions that extend beyond typical lending structures to assist with:
- Creation costs
- Working capital
- Shareholder buyout
- Mergers and acquisitions
- Balance sheet restructuring
- Capital expenditures
Other types of banking and financial services
- Investment banking. Corporations or governments can use an investment bank to act as an intermediary in complex transactions that often require access to debt capital and equity capital markets. Investment banks may also offer assistance with mergers and acquisitions.
- Retail banking. Retail banks provide individual customers with everyday services, such as checking and savings accounts, credit cards, mortgages and auto loans.
- Private banking. Private banking refers to banking and financial services for high net worth individuals and families and may include wealth management planning, trustee services, mortgages, tailored banking and investment solutions.
- Retirement plans. Saving for retirement is essential for both business owners and employees. There are many different types of retirement savings plans to choose from, including employer-sponsored 401(k) plans and individual retirement accounts (IRAs).
- Insurance can protect both you and your business from loss due to accidents, property damage, professional errors and unexpected events. As a business owner, it is important to get the right type and level of coverage to protect your assets.
Ultimately, banking and financial relationships are based in trust. If your company is engaged in providing security, fire or medical alert services, you need a financial partner who can understand your needs and provide flexible solutions that can address the unique challenges of a fast-growing and rapidly changing industry.
CIBC Bank USA. Member FDIC, Equal Housing Lender, Loans are subject to credit approval.