What Are The Advantages And Disadvantages Of Business Banking

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Business banking is a division of the bank that offers financial services targeted at the business entities. The entities are segmented into public sector, small, medium enterprises and commercial (Medium to Large). Absa Business bank further segments commercial banking into growth and premium as being business generating revenue of between R 20 million to R 500 million. These business are established and have more complex banking needs in comparison to small business. Absa Business Banking operates in divergent segments and strategically focuses on the following high growth sectors: • Agriculture • Wholesale and Retail • Franchising The business banking delivers financial product and services through a relationship based model to business…show more content…
Critical is that the business financial position and the cashflow projections should be based on realistic assumptions and affordability for the credit facilities should be evident. The banker should consider the appropriate lending structure depend on the customer capex requirement i.e working capital, asset based finance, property finance. The benefits of the proposed solutions should be discussed with the client and inclusive is available collateral required e.g. Personal sureties, cross company sureties, pledges and tangible cover. 3) Savings & Investment The client cash convention cycle should be understood in order to recommend the suitable investment. Surplus funds should be invested to yield interest to build up cash reserves for the business. 4) Bancassurance The banker should conclude a risk assessment for the business including in the client’s personal capacity in order to propose the most appropriate risk mitigation product through short insurance and assurance…show more content…
The cultivation of sustainable business relationships requires a strategic approach to portfolio management and that necessitates the organization to transcend to become customer-focused. The organizational sales culture should transform from product pushing to value added solutioning. The effective key account management approach necessitate the commitment to understanding the customer’s business operations that will empower the organization to provide value added solutions. The key account management yields better customer retention and significant financial returns for the organization. The objective of key account management is to optimize long-term relationship returns through investments in customer relationships. Key Account Management Trends • The development of specialist financial services knowledge within the organization and the sales forces. • Broadening customer insights though focusing on understanding the customer’s business and the environment that clients

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