Corporate Banking solutions include day-to-day banking and financing solutions.
When a company is created, it will have to open a bank account or even several accounts in different currencies. Moreover, if it has subsidiaries, this multiplies the number of accounts. Some of these accounts will be overdrawn, others with surpluses. One of the services that the bank will be able to bring to the customer is the management of the multi-currency cash flow and the investment of the cash surpluses. This is called cash and liquidity management. Similarly, the company will need means of payment to receive money from its customers, pay its suppliers and employees.
Similarly, if the company trades internationally, it will have to manage international risks and payments.
These solutions are mainly provided by the bank's transaction services department.
To finance its daily activity, the company might need classical financing solutions: credits, overdraft authorizations, etc. these financing solutions are usually provided by the "coverage" or bankers.
For all specific financing needs:
- financing of construction and operation of projects;
- asset financing (aircraft, ships, real estate, etc.);
- acquisition financing for companies;
there is structured finance.
What changes from one structured financing to another is:
- the purpose of the financing;
- the financing arrangement (structuring);
- the risks;
- the lenders.