Younger and smaller companies have more access to bank credit than larger older firms since they require less funding and therefore carry less risk.

Question

Quizplus · Accepted Answer

This statement is false. Generally, larger and more established companies have better access to bank credit as they have a proven track record and can offer more collateral. Younger and smaller companies may have difficulty accessing bank credit due to their lack of financial history and assets.

Younger and Smaller Companies Have More Access to Bank Credit