Why is it necessary for banks to require a guarantee before making loans available to smaller firms ?

5 Answers

Relevance
  • Anonymous
    8 months ago
    Favorite 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.

    • Commenter avatarLogin to reply the answers
  • 8 months ago

    So that the bank doesn't lose money if the small business doesn't pay back the loan.

    • Commenter avatarLogin to reply the answers
  • 8 months ago

    Wouldn't you want some assurance that you will get your money back?

    • Commenter avatarLogin to reply the answers
  • 8 months ago

    It's not necessary.. it's up to what the firms credit/assets etc look like.

    • Commenter avatarLogin to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    8 months ago

    Banks hate to lose money.

    • Commenter avatarLogin to reply the answers
Still have questions? Get your answers by asking now.