Businesses in Canada rely on banks for a host of their finance-related requirements. To better meet the growing demands of the businesses, banks, too, now offer many different types of financial products and services. Check out how a modern bank in Canada could help a business grow.
The give-and-take relationship between businesses and banks not just in Canada but all over the world is an unavoidable one. Businesses have a host of finance-related requirements that could only be fulfilled by reputed banks through their products and services.
Moreover, as the business landscape has become more complicated in the last decade, top banks in Canada have also launched several modern-age products and services to help businesses. Here are some of the different ways in which a top bank could help a business grow-
1. Safe Storage of Funds with Bank Accounts
Businesses should have feature-packed bank accounts for hassle-free deposits and withdrawals. Businesses in Canada generally have a chequing bank account for managing their day-to-day transactions. Focus on factors such as monthly fee, minimum balance requirement, deposit and withdrawal limits, and bill payment facilities before opening a chequing account.
A lot of business owners also have personal business savings accounts. This is a type of interest-bearing account exclusively designed for businesses. Savings are essential to give your business a financial cushion. Business savings account not only helps you save but also grow your savings.
2. Commercial Financing for Business Growth
Businesses often need access to additional funds for many different reasons. It could be the working capital required for everyday operations or funds needed for purchasing equipment or raw materials.
Banks in Canada now offer several commercial loan products, like a line of credit (LOC), operating loans, and term loans to help businesses. All the different types of loans are available for varying tenures to effectively meet the requirements of the borrowers.
3. Investment Options for Financial Stability
Businesses should also regularly invest in fixed-income generating assets to further enhance the financial stability of their operations. For this, banks now offer reliable investment options such as GICs (Guaranteed Investment Certificates) and term deposits.
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These investments earn fixed interest over a fixed duration so that businesses could also make effective decisions concerning their finances. These investments are generally available in Canadian Dollars and US Dollars for durations ranging from 1 year to 5 years.
4. Improved Risk Management with Treasury Services
Businesses in Canada that regularly deal with international companies often have a considerable amount of foreign exchange risk. Banks now offer treasury services to minimize such business risks. Similarly, there is interest rate risk that a business should handle skillfully, as it could help them save a lot of money.
Banks also offer interest rate risk management services to help businesses in this regard. Some of the banks also provide specialized fund transfer and clearing services to companies that regularly make payments through SWIFT, bank drafts, or cheques.
5. Import and Export Services for Traders
Businesses involved in the import and export of products to and from Canada could also significantly benefit by partnering with a top bank. Some banks now offer business banking services ranging from export and pre-shipment finance, export bill purchase, bill negotiation, bill collection, LC discounting, and more.
This could add a lot of transparency and efficiency to how a trading business manages its finances and transactions.
Business Banking Products and Services in Canada
As can be seen above, banks in Canada now offer an extensive range of products and services exclusively designed for businesses and their growing requirements. With the help of these offerings, businesses could not only improve their existing operations but also pave the path for their expansion and growth.
Go through the commercial products and services offered by a reputed bank to know more about the different ways in which they can facilitate your growth.