When financing a business's purchase of equipment,a bank usually lends ________ percent of the equipment's value in return for a security interest in the equipment.

Question

Quizplus · Accepted Answer

Banks usually lend 60 to 80 percent of the equipment's value in return for a security interest in the equipment. This means that the business will need to come up with the remaining 20 to 40 percent of the equipment's value as a down payment or with other financing options.

When Financing a Business's Purchase of Equipment,a Bank Usually Lends