Business — Banking — Management — Marketing & Sales

Many activities can be found in this pole; they are managed outside the credit institution for financial, fiscal or juridical reasons. We can describe four of them.

Unit trust securities

This body is an independent, juridical and fiscal entity that will include in its assets the funds offered by the economic agents having subscribed to its capital.

Leasing

This is a complementary activity to credit function in the financing of investments.

The credit institution will buy movables or an estate property and leave it at the disposal of the economic agent who will pay a rent; at the end of the payments, the lessee will have the right to buy the thing that was rented, at an agreed price.

Capital risk

Capital risk is buying shares of a company to increase its capital. The credit institution will remain a shareholder during a period necessary to its development and then sell the shares back to the managers or other shareholders.

If the company fails, the bank may face a capital loss.

Factoring

It is a technique of financing the working capital of a company through selling the bills of exchange drawn on the company; it is different from discounting as the «Factor» which buys the bills, gives a guarantee of final payment by the company.