A commercial bank is a bank that works with businesses.
Commercial banks handle banking needs for large and small businesses, including:
- Basic accounts such as savings and checking
- Lending money for real and capital purchases
- Lines of credit
- Letters of credit
- Lockbox services
- Payment and transaction processing
- Foreign exchange
Commercial banks often function as retail banks as well, serving individuals along with businesses.
Businesses have unique needs that consumers don’t have. For example, some businesses need a commercial bank that can accommodate a large volume of credit card payments and cash deposits.