Essentials of Corporate Banking Account - Why you need a second Bank Account ?

Corporate Banking is a specialised division in the bank and it is a priority for any businesses to want to open one. This banking account provides numerous banking solutions like credit management, quality management, money management, and underwriting to giant companies similarly on tiny and medium size enterperises (SMEs)

A second banking account will :

• Segregation of Funds - This will allow business to segregate operational funds from savings, investments, or project - specific financing. This organisation helps in better cash flow management and financial tracking.

• Risk Management - in case one account is compromised due to fraud, having a second account can serve as a buffer. It reduces exposure and mitigates risks associated with maintaining all funds in a single account.

• Different Banking Relationships - Working with multiple banks can provide leverage in negotiations related to loans, fees and services. Each bank may offer unique benefits tailored to various aspects of the client's business operations.

• Specialised Services - Different banks may offer specialised services that specific business needs, such as foreign exchange, export financing, or cash management solutions. Having multiple accounts can help access these tailored services.

• Easier Financial Oversight : By separating accounts for specific purposes, such as payroll, vendor payments or tax savings, it's easier to track expenditures and revenues related to different business activities, simplifying account and reporting processes.

• Better Interest Rates or Terms. Shopping around for accounts may help the client find better interest rates or more favourable terms for different banking needs, such as savings accounts, loans or credit lines.

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