CHAPTER 20Businesses and Commercial

Banks

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SERVICES PROVIDED BY COMMERCIAL BANKS TO BUSINESSES

1. They provide current accounts2. They provide loans and overdrafts3. They provide foreign exchange facilities4. Business credit cards and all the services

required by businesses to accept credit card and debit card payments

5. They provide night safes6. They provide leasing finance7. They provide advice on all commercial

matters8. They provide Paypath facilities for the

payment of wages

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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 Association3. The company’s Memorandum of

Association4. 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)

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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 firm3. The qualifications /

experience of the owners /managers

4. The amount of the loan5. 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

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Signed

Collateral

Attachments

Company’s bank

Details of loan required:AmountPurpose of the loanPeriod of the loanMonthly repayments

Personnel: qualifications and experienceDirector (a)Director (b)

Business History:

ApplicantName 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 carpenterNoel Browne 20 years experience as a master carpenter

€500,000To build a new factory in CavanTen years

€6,500Cando 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!!!