What type of lending services do banks offer?
Commercial banks offer a wide range of lending services. They primarily lend on short-term commercial credit but also make long-term loans to businesses. Generally, large city banks make more business loans than the smaller, rural banks, which may lean towards agricultural and consumer loans. Banks will also lend on account receivables and sometimes purchase receivables outright. This specialization has further expanded the use of credit in the United States. As an alternative to borrowing from a commercial bank, small businesses can take advantage of the loan programs offered by the Small Businesses Administration. back to top How are loans secured? The lenders credit standards and the needs of the borrower determine the type of loan and the channels of credit that are used. A loan may be unsecured or it may be secured using assets as collateral. It can also be secured by collateral along with a guarantee by another party. This party can be a cosigner or government agency (e.g.: Feder
