Commercial banks are a kind financial institution.
There are certain differences between those investment banks and commercial banks.
The different lies in the types of loans they offer, which are: oMortgage loans - The basic difference from a normal bank to commercial bank is the security lien which the commercial bank has, on the property pawn.
This security is extended until the entire mortgage is paid back to the lender.
oLoans void security a.
k.
a Unsecured Loans - These loans are offered without any property or assets to pledge for security.
A commercial bank is the place to head when you need cover for your venturing needs.
These banks specialize in mortgages for ventures, large or small, rather than lending for personal use.
These banks offer normal benefits such as check accounts, savings and other services which normal banks offer.
If you are a proprietor of a venture, these commercial banks lend capital, which is a necessity for a successful establishment.
Opting for the apt bank for your venture is very important decision to take.
Loans of higher limits are usually the first transaction that takes between the commercial bank and the borrower that is why choosing the right one from the very beginning of the relation is really important.
A good business man always has a plan and forethought, before approaching any commercial bank for a loan.
Every bank determines the reliability of your venture and this would be a vital factor for them to decide whether to invest with you or not.
They don't really bother about you, but for the business they invested.
You need to have some checkpoints, to finalize upon a bank which will be the best for you and your venture: oCover for your personal financial needs - To look after you and your business.
oMake a note of the lending and borrowing history - A little research would suffice.
This will help you to go through what kind of ventures they have invested in and how compatible they are for yours.
oCustomer satisfaction - Just ask one of their customers about how happy he/she is to bank with them.
Make sure that you stay off banks with poor customer relationship and a really suspicious high turnover.
oFees and services - Last but not the least, the fees they ask for must be fair and the services that they can benefit your business.
No point in dealing with a bank with large fee and no gain.
Look out for those banks which can crank you up with a powerful start which you need.
If you are a small scale business practitioner, there must be some commercial bank that is willing to invest in you.
Commercial banks are always ready to invest in small and big ventures alike and that's why they are in business for.