Most businesses require various banking solutions that can aid in their short-term or long-term business growth. This post discusses such banking solutions that can help UK businesses achieve their business objectives faster.
According to the World Bank annual rating of 2019, the United Kingdom is ranked 8 in the ease of doing business among 190 economies. It is, therefore, no wonder that organizations and firms, both old and new, consider the UK as an important destination.
The banking infrastructure in the UK is robust, and many reputed banks offer banking solutions to corporates that can help them in the smooth running of their business operations in the UK. Following are some common yet important banking solutions provided by reputed banks for businesses in the UK.
- Corporate Banking- Current Account
Having a current bank account can be extremely beneficial for a business organization. Reputed corporate banks, through their multi-currency account, offer 24-hour online access in Sterling, Dollars, and Euros.
Through corporate online banking, the customers are offered access to various online services such as real-time balances and statements and many more. Many current account providers also offer a dedicated relationship manager to maintain a direct and speedy communication channel between the organization and the bank. A current account is the backbone of any business, and one must choose it with care.
- Loan and Advance Facilities
Businesses may require corporate financingfor their new projects, capital purchase, etc. Corporate banks provide the following types of loans and advances to help businesses in maintaining liquidity.
- Short Term Loans and Overdrafts
These types of credits are provided to finance the working capital of businesses.
- Corporate and Syndicated Loans
These types of loans are provided to finance acquisitions, capital expenditure, refinancing capital structure, and other such purposes.
- Trade Finance Solutions
Corporate banks, along with their network of foreign banks, can help importers/exporters to meet their domestic or international trade requirements.
Additionally, they can offer various trade solutions, such as
- Bank Guarantee
Sometimes businesses require to submit assurance for their commitment toward the completion of large-scale projects. Large-scale and high-value government infrastructure projects can be prime examples.
Such projects require businesses to submit a bank guarantee to assure performance and availability of finances.
- Letters of Credit
While dealing with overseas and unknown suppliers, businesses may need to furnish a letter of credit to assure their suppliers of proper and timely payments. Letters of credit help businesses in
- Easier buying access in international markets
- Developing strong business relationships with clients and suppliers
- Removing the risk of default that can result in more business opportunities
- Invoice Financing
Invoice financing can be used by businesses to infuse liquidity at reasonable rates to finance the manufacturing and working capital needs.
Apart from the points discussed herein, there can be many other corporate banking solutions that can provide much-needed financial leverage to businesses. Business owners should ask the concerned banks to provide details about the various banking solutions on offer and choose accordingly.