What Are the Different Types of Business Finance Services?

When a company needs additional capital to expand or complete a project, business finance services can help the company achieve its goals. These services could be in the form of credit that gives a company access to a loan, or they might involve selling equity in the financial markets. Banks are the usual financial entities that extend financial services to businesses, and these institutions sometimes offer financing options that are especially attractive to businesses of a certain size.

Lending institutions might offer credit cards that are exclusively reserved for businesses. Business finance services might include access to money in addition to several other benefits. For instance, most charge cards have an annual percentage rate (APR), which is a rate of interest that is charged to customers over a 12-month period. To attract businesses to a particular credit card, a financial institution might waive that interest rate to new customers for a period of time as a benefit for using the services. Also, in addition to earning a line of credit to purchase items that might be necessary for a business, the bank might offer incentives, such as bonus points, that can be applied toward designated items for spending a certain amount of money.

There are a host of business finance services offered to companies through corporate finance. This is a means of turning to the public or private markets and generating money from investors. The financial expertise and market relationships that might already be developed at financial institutions can lead a company through these business finance services.

In certain regions, corporate finance options for small businesses might be uniquely designed for benefiting the small-business community. For instance, it might be possible for a business to raise capital, up to a maximum amount designated by some financial regulator, by filing a small company offering registration (SCOR) to sell financial securities. These business finance services offered by banks allow small business owners to bypass some of the regulatory complexities and high costs associated with traditional and grander forms of corporate financing activity.

Commercial mortgages also represent a type of business finance services offered by lending institutions. Businesses must qualify for these loans and fill out a formal application to be considered. Certain financiers design commercial loans with special terms for a particular type of business, such as a medical facility. Medical professionals might be eligible for certain benefits, such as fixed interest rates that are attractive over a period of years.