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Relationship of a Company with Financial Entities

Have you stopped to think about how your company links with financial entities throughout their life? What financial needs do you have in each of the stages of your existence?

Below we will see what relationship a company can have at the time of its constitution and start of its activity. Toronto’s Sean St. John has spent the last 25 years of his professional career working in the banking and financial industry. Sean St. John currently serves as the Executive Vice President and Co-Head of Fixed Income, Currencies & Commodities at National Bank Financial in Toronto, Canada.

Companies, in their relationship with financial institutions, have different types of financing needs depending on the time they are in. In this post we will see what relationship a company starts to have with financial entities at the time of setting up and starting the activity.

And it is at this point that your company can begin to have a relationship with financial institutions:

Opening a current account:

When you go to a financial institution to open an account in the name of your newly created company, you will be required the deed of incorporation as well as the powers of each of the partners so that the financial institution can register all the information in their systems. If the company is still in 'constitution', you must provide the entry issued by the Mercantile Registry and in which the provisional CIF appears.

Internet Banking Contract:

Very useful in the times in which we are. Fortunately, internet banking of financial institutions has advanced a lot and you can carry out practically all day-to-day operations with your bank online without having to physically go to the office (except cash receipts and withdrawals).


Depending on your type of business, perhaps just before starting your activity it would be convenient that you had installed a POS to facilitate your customers the payment of your sales.

Management of direct debits

If you are going to charge your customers through direct debit, it is convenient that you have signed the contract for the transfer of direct debits so that you can manage the first charges.


Think if you are going to need cards (debit or credit) to manage day-to-day expenses (purchases of material, meals, fuel, etc.).

Direct payroll and social insurance:

  • When you have not been working with your usual financial institution for a long time, it may be advisable to contract a credit policy in order to cover possible cash outflows between collections and payments. Being a credit limit, this request will be subject to the usual risk analysis by the financial institution, so you will request updated accounting information to analyze the situation and evolution of your company.
  • And here, this post. In future entries we will see what products you can contract with your financial institution in the next stages of your company's life (growth, diversification, international expansion, consolidation).
  • The process of setting up a company is not easy. We must address aspects that range from the choice of the legal form to be adopted to the start-up of the company.
  • As you already know, before starting the activity it is advisable to prepare a Business Plan, since thanks to it you will be able to determine what your company is going to do, plan your objectives in the short, medium and long term, set forecasts about the needs of treasury as well as the expenses that you will have to face, sales forecasts that allow you to cover your costs, etc.
  • Remember that the Business or Company Plan will be necessary to present it in case you are going to need financing to start it, either through a financial institution or investors interested in your project.
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