Asked by Caden Coulson on Jun 13, 2024
Verified
What is the advantage of dealing with a commercial finance company?
A) Better rates
B) No prepayment penalties
C) Flexibility with lending arrangements
D) Short commitment time frame
Lending Arrangements
Financial agreements where a lender provides funds to a borrower with the expectation that the funds will be repaid, often with interest.
- Understand the functions and conditions set by banks, finance firms, and other credit organizations in offering financial resources.
- Differentiate between different loan and financing structures and their suitability for various business needs.
Verified Answer
TW
Tameika WrightJun 13, 2024
Final Answer :
C
Explanation :
Dealing with a commercial finance company provides flexibility with lending arrangements, which can be customized to fit the specific needs of the business. This can include a range of financing options such as leasing or loan repayment terms, as well as more personalized attention and advice than other lending institutions might offer. While rates and prepayment penalties may also be a factor in choosing a commercial finance company, the ability to tailor financing arrangements to the unique circumstances of a business can be a significant advantage.
Learning Objectives
- Understand the functions and conditions set by banks, finance firms, and other credit organizations in offering financial resources.
- Differentiate between different loan and financing structures and their suitability for various business needs.
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