Commercial finance companies offer many of the same types of loans as commercial banks,but they are willing to tolerate more risk in their loan portfolios.

Question

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Commercial finance companies are often specialized in certain types of loans, such as equipment financing or factoring, and may be more flexible in terms of collateral requirements or credit history. However, they also charge higher interest rates and fees to compensate for the higher risk they take on.

Commercial Finance Companies Offer Many of the Same Types of Loans