1. CHAPTER 20 Businesses and Commercial Banks

2. 2 R. Delaney SERVICES PROVIDED BY COMMERCIAL BANKS TO BUSINESSES 1.They provide current accounts 2.They provide loans and overdrafts 3.They provide foreign exchange facilities 4.Business credit cards and all the services required by businesses to accept credit card and debit card payments 5.They provide night safes 6.They provide leasing finance 7.They provide advice on all commercial matters 8.They provide Paypath facilities for the payment of wages

3. 3 R. Delaney Opening A Business Bank Account When filling out an application form the business must also supply: 1.The company’s Certificate of Incorporation 2.The company’s Articles of Association 3.The company’s Memorandum of Association 4.A signed copy of a resolution passed by the directors of the company to open a business bank account 5.The signatures of people authorised to sign cheques 6.A Non-Personal Customer Identification Form (or money laundering certificate)

4. 4 R. Delaney Applying for A Business Bank Loan The bank will require: 1.The name of the company and the address of its registered office 2.A brief history of the firm 3.The qualifications / experience of the owners /managers 4.The amount of the loan 5.The purpose of the loan 6. The time period for which the loan is required 7.The bank accounts held by the business 8.The company’s business plan 9.A cash flow forecast for the business 10.A set of audited accounts 11.The security or collateral being offered

5. 5 R. Delaney Signed Collateral Attachments Company’s bank Details of loan required: Amount Purpose of the loan Period of the loan Monthly repayments Personnel: qualifications and experience Director (a) Director (b) Business History: Applicant Name of Company: ________________________________________ Company’s registered address: _______________________________ Cando Bank Ltd Loan Application Form Cosy Furnishings Ltd 20, Main St. Athlone Co. Westmeath John Sherlock 20 years experience as a master carpenter Noel Browne 20 years experience as a master carpenter €500,000 To build a new factory in Cavan Ten years €6,500 Cando Bank Ltd Athlone Cash flow forecast for Cosy Furnishings Ltd Freehold factory located in Athlone Q2: Workbook, Page 109 John Sherlock: Noel Browne In existence for 20 years with reserves of €850,000 Date: Today’s Date!!!