Why is it necessary for banks to require a guarantee before making loans available to smaller firms ?
- Anonymous8 months agoFavorite 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 78 months ago
So that the bank doesn't lose money if the small business doesn't pay back the loan.
- curtisports2Lv 78 months ago
Wouldn't you want some assurance that you will get your money back?
- Beverly SLv 78 months ago
It's not necessary.. it's up to what the firms credit/assets etc look like.
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- Anonymous8 months ago
Banks hate to lose money.