A merchant bank is an institution that provides versatile business consultancy and banking services. One of the major roles of a merchant bank is to help companies in raising funds for their business activities and capital requirement. Thus, these banks play a key role in the development and working of primary markets. A merchant banker is also an expert in trading in securities and he helps his clients in improving their asset management strategy. Several new companies hire the services of a merchant bank when they need to raise capital by issuing shares through a public offering. A merchant banker can expertly help the company owners in initiating the whole process in compliance with requisite rules and regulations. Based on the varied functions and services offered by a merchant bank it can be classified into a full-service bank, regional bank or a boutique investment bank. The versatile functions offered by a merchant bank include rehabilitation or revival of sick units, underwriting services, mergers and takeovers, offshore financing, foreign direct investment, portfolio management, private placement, project counseling etc.
Benefits of merchant banking services
- Having a merchant bank account can help you in carrying out complex business transactions like processing various types of online and offline monetary payments made by clients and customers using credit and debit cards.
- Having a merchant bank account can prove most useful when you are facing a financial crisis. A merchant banker can provide customized financial and capital restructuring solutions that can help your company or business in recovering from an adverse monetary crisis.
A merchant bank in Singapore provides various types of business financing solutions at affordable rates for its account holders. So if you are planning to expand your business or start a new branch, you can count on your merchant bankers to come up with a full-fledged fundraising strategy.