A finance company in Riyadh has several different functions. These include Investment and commercial banking, loan officer, and factoring. The type of financing a company provides can be quite different than the type of financing individuals need for their personal financial needs. It is helpful to know what they do to understand how these different types of finance companies function before deciding on a location.
A commercial bank finance company is a financial institution that makes loans for business enterprises. It provides similar services and products as a personal bank but is tailored to the specific needs of businesses. These banks accept deposits from people, corporations, and government entities and provide loans to individuals and businesses. They also provide other financial services, such as credit card processing, traveler’s checks, and electronic check services.
An investment bank is a financial institution that provides financial advice to clients and facilitates transactions. Its activities are typically divided into two parts: the buy side and the sell side. The sell side is engaged in the trading of securities, market-making, and research activities. The buy side provides advisory services to institutions such as hedge funds, private equity funds, and life insurance companies.
Investment banks are organized by industry and product coverage. An industry coverage group focuses on a particular industry and develops relationships with corporations within that industry. The product coverage groups focus on specific financial products, including mergers and acquisitions, public finance, asset and leasing, structured finance, and debt issuance.
A loan officer is responsible for evaluating credit and loan applications in finance. They may work for a bank, trust company, credit union, or mortgage lender. These professionals interview borrowers and research to determine their financial standing and ability to repay the loan. They also promote the company’s loan and credit services. Other responsibilities may include preparing unpaid account statements, negotiating repayment terms, and referring accounts to debt collectors. The job requires a high level of accuracy and an understanding of standard accounting procedures.
Factoring is a process in which a finance company helps a business with its short-term cash needs. Companies typically use factoring when their available cash balance is insufficient for new orders and contracts. It is a proven method of financing and is still used by some industries today. Its advantages include reducing the amount of cash on hand for the firm and allowing it to invest in its business growth.