Have you ever wondered how large companies like Apple and Reliance manage all their money? 

They have billions in cash and liquid assets – where do they store it? Who keeps it safe?

The answer: corporate banking. 

Businesses have financial needs, too. Just as individuals need to store their money and may need loans, so do businesses!

Corporate banks provide these financial services to businesses. But why doesn’t a regular bank serve these needs – why do we need corporate banks?

Corporate Banking Vs Consumer Banking: Which is better for startups?

What we think of as “regular banks” are called consumer or retail banks. They cater to the needs of individuals and the smallest businesses – providing savings accounts, deposits, and loans. 

These banks are not made to manage the finances of a rapidly growing business. 

RazorpayX is.

Businesses have other needs that a commercial bank simply cannot anticipate or provide for. This creates the need for a branch of banking optimized for businesses. But how do they do this? 

This next section tackles exactly that. 

Corporate banking: a branch of banking optimized for businesses

Corporate Banking Services

Current accounts

A current account is a platform where a business can send and receive money. 

But aren’t savings accounts essentially the same thing?

Savings accounts also allow people to send and receive money, but it limits the number of transactions and amount of money that can be sent or received. 

A regular person using her savings account may make a maximum of 10-15 transactions. These may include paying for groceries, electricity, or water bill… but businesses make thousands of these transactions on a daily basis. 

Savings accounts just don’t cut it when it comes to business – they aren’t built for the kind of transactional traffic that businesses bring. 

Current accounts allow businesses to send and receive money with no limit. They also offer overdraft facilities and allow for integrations with accounting software like Tally and ZohoBooks. 

Credit facilities

A business in its initial stages does not earn enough to cover costs. Even later in its lifetime, credit needs may arise.  Corporate banking provides specially designed loans to help businesses with these funding requirements. 

Different banks offer many different kinds of loans for businesses, but the most common are:

Working capital loans

Sometimes a business may not have cash on hand to pay for rent, raw materials, and other daily operations. Businesses that experience a seasonal spike in demand may especially have this issue. 

For example, many businesses record a spike in sales in the second half of the year. 

Working capital loans provide financing for the daily operations of a business. They are not used to finance the purchase of big assets or long-term investments. 

Working capital loans come in the form of overdrafts or cash credit facilities so that merchants can continue paying their bills and vendors when they don’t have enough cash on hand. 

Term loans

When a small to medium business needs to purchase an asset but does not have the cash to do so, it can avail a term loan.  Banks offer these loans under flexible repayment terms based on the business’s cash flows and financial condition. 

However, these loans are typically not given easily – merchants need to prove their creditworthiness and financial stability if they want approval for term loans. 

Corporate credit card

Loans are big commitments. They require collateral and demand interest rates that may not be within a business’ budget. In these cases, corporate banks provide businesses with credit cards, tailor-made for corporate needs. 

Just as a savings account cannot serve all the needs of a business, a personal credit card doesn’t hold a candle to a powerful corporate credit card. 

Corporate credit cards allow for much higher spending limits than personal credit cards and do not require personal guarantees or deposits of any kind – something that most personal credit cards do require. 

Personal credit cards give the holder perks like airport lounge access and discount coupons – but what would a business do with these benefits?

RazorpayX’s Corporate Credit Card offers perks and benefits that would actually benefit a business: free credits on AWS, Google Workspace, Shopify, WeWork, and more!


Cash Management

Businesses have to deal with paying vendors, and employees, processing refunds, paying taxes and so much more. They also have to deal with a huge inflow of cash from revenue generation, interest earnings, and more. 

Corporate banks have cash management services that allow merchants to make and receive these payments with ease. 

A good corporate bank should also have corporate net banking services, where businesses can make transactions on the go, via their mobile phone or computer. 

The best kind of corporate banks today are neobanks– internet-first banks that offer much more than traditional banking, in beautiful UI. 

Check out RazorpayX – we make banking for businesses the easiest it’s ever been.  

Does my business need corporate banking?

All businesses need corporate banking!

Good founders anticipate growth. A growing business needs to have a solid bank to back it up, even in the initial stages. Relying on the services of commercial banks may serve well in the beginning, when growth is gradual. But when your business explodes, and you’re still relying on legacy retail banks… 

This is why any smart business owner realizes the need for a good, reliable corporate bank to manage their money right from the start.  

Do you?



What is corporate banking?

Corporate banking is a branch of banking optimized for businesses. They manage all aspects of a business's financial needs.

What is retail and corporate banking?

Retail banking provides personalized financial services for individuals and very small businesses. Corporate banking is specialized in the financial needs of small, medium, and large businesses.

What is corporate net banking?

Good corporate banks should have corporate net banking services, where merchants can make transactions and check their accounts on their mobile phones or laptop.

How is corporate banking different from investment banking?

Corporate banking manages a business’s money and provides credit facilities when needed. Investment banks help businesses with mergers, and acquisitions and with making decisions related to investments.

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    Raghavi Kasa
    Author Raghavi Kasa

    Raghavi likes to think that because she writes for a living, she'd be good at writing a short bio for herself. But she isn't. She is good at binging K-drama, though.

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