The primary source of secured short-term loans to businesses are ________.
A) commercial banks and commercial finance companies
B) lines of credit and revolving lines of credit
C) commercial paper dealers and investment bankers
D) life insurance companies and government securities brokers

Question

Quizplus · Accepted Answer

Commercial banks and commercial finance companies are the primary sources of secured short-term loans to businesses. These institutions offer various types of loans, such as working capital loans, asset-based loans, and equipment loans, that are backed by collateral and have a fixed repayment term. Lines of credit and revolving lines of credit are forms of unsecured short-term financing, while commercial paper dealers and investment bankers are sources of unsecured funding for larger and more established corporations. Life insurance companies and government securities brokers are not typically providers of short-term business loans.

The Primary Source of Secured Short-Term Loans to Businesses Are