Merchant banking is a special branch of banking that provides financial services to medium to small-sized businesses. Merchant banks may help with underwriting, fundraising, credit or financial advice, and may also provide services to high net worth individuals. Merchant banks help businesses raise funds from the public by issuing shares and debentures, rights issues of shares, preferential allotment of shares, private placement of shares and debentures, and other instruments. They also help arrange funds for large corporate borrowers by syndicating loans from multiple lenders. Merchant banks have a higher risk appetite since they deal with smaller businesses, and their profit model is fee-based. Merchant banking is a valuable financial service that can provide growing businesses with the capital and financial help they need, as well as advice and assistance in areas such as financial management, corporate strategy, and risk management.