Why is it necessary for banks to require a guarantee before making loans available to smaller firms ?
- Anonymous4 weeks agoBest Answer
Business default (fail, bankruptcy) every five years or less.
The Bank wants to be as sure as possible, that they will get back the money with interest.
- StephenWeinsteinLv 74 weeks ago
So that the bank doesn't lose money if the small business doesn't pay back the loan.
- curtisports2Lv 74 weeks ago
Wouldn't you want some assurance that you will get your money back?
- Beverly SLv 74 weeks ago
It's not necessary.. it's up to what the firms credit/assets etc look like.
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- Anonymous4 weeks ago
Banks hate to lose money.