What role does a bank play in getting a company financing?
A bank can be a direct source of financing and frequently provides loans and leases for its customers. Bankers can also help their customers identify sources of cash within their own businesses by helping accelerate the cash collection cycle. Banks also can be instrumental in helping companies obtain other types of capital, such as subordinated debt or equity. Not all banks are the same, however. While banks may appear to be very similar, they may actually be quite different in the way they serve customers. Some banks specialize in serving individuals, and others may focus on businesses. In addition to loans, business-focused banks generally provide other services that are specialized for companies. Changes in technology have brought many advances to the ways that banks and their customers work together. What kinds of commercial financing options are available to businesses? Businesses have many commercial financing options to fit their different needs. Lines of credit, other types of
