As the providers of debt financing to small businesses,banks tend to:

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Banks tend to be very conservative and lend primarily short-term capital. This is because short-term loans present less risk for the bank and are easier to manage. Additionally, banks often require collateral for their loans, such as inventory or accounts receivable, which can be quickly converted into cash in the event of a default. While banks do lend to start-ups, they typically require a strong business plan and collateral to lower the risk involved.

As the Providers of Debt Financing to Small Businesses,banks Tend