About loans?
If there are two companies, a large company who gets bank loan of £100, 000 and a rate of interests of 10% on the other hand there is a small company who get bank loan of £1000 and a rate of interests at 12%.why is the large company charged a lower rate of interest?alsowho is more likely to get a loan?
Answer
There can be bloke
y reasons. the large company may be a better customer of the bank than the small company. the large company can have a better credit rating than the small company. the big company may be offering collateral (assets pledged) on the loan, and the small company loan may be unsecured.
these are three of the most likely reasons.
