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Kamila [148]
3 years ago
13

Why do finance companies charge higher interest rates on loans than banks do?

Social Studies
2 answers:
Ilya [14]3 years ago
5 0
Commercial financing institutions generally charge higher interest rates than banks and credit unions, but they are also more likely to approve a loan request. ... "For that reason, they can loan more against the assets. So chances are a smaller business might get a larger loan from a finance company" than from a bank.
Elanso [62]3 years ago
3 0

Answer:

They are way more likely to approve a loan request to a singular person, while banks do way more checks and are usually out of bounds for smaller businesses.

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Such a shift is represented in the graph attached.

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