Commercial finance companies are willing to take more risk in making loans than commercial banks, but they also charge a higher interest rate.

Question

Quizplus · Accepted Answer

Commercial finance companies specialize in providing financing to businesses that may not meet the strict lending requirements of commercial banks, so they are willing to take on more risk. However, to compensate for the increased risk, they usually charge higher interest rates than commercial banks.

Commercial Finance Companies Are Willing to Take More Risk in Making