Financial Institutions

A bank is "a financial institution licensed as a receiver of deposits. There are two types of banks: commercial/retail banks and investment banks. In most countries, banks are regulated by the national government of central bank."

Commercial Banks are mainly concerned with managing withdrawals and deposits as well as supplying short-term loans to individuals and small businesses. Consumers primarily use these banks for basic checking and savings accoutns, certificates of deposti and sometimes for home mortgages. Click here to find a complete listing of all the banks in South Carolina.

Investment Banks focus on providing services such as underwriting and corporate reoganization to institutional clients.

Online-only banks often offer consumers higher interest rates and lower fees. Convenience, interest rates and fees are the driving factors in consumers' decisions of which bank to do business with. As an alternative to banks, consumers can opt to use a credit union.

Credit Unions are member-owned financial co-operatives. These institutions are created and operated by its members and profits are shared amongst the owners. As soon as you deposit funds into a credit union account, you become a partial owner and participate in the union's profitability. Credit unions are formed by large corporations and organizations for their employees and members. Click here to find a complete listing of all the credit unions in South Carolina.

The Breakdown

Pros:

Lines of credit are easier to acquire and easier to pay off and are less intensive in background checks and requirements
There are many banks and opportunities for obtaining capital

Cons:

risk-averse; prefer to invest in established businesses with more traditional business models
often need a high net-worth individual to guarantee the loan

Who Qualifies:

Banks take into mind previous credit history, current or outstanding debts, and ability to repay the capital borrowed.