Explore BrainMass

Explore BrainMass

    Corporate Finance: Loans, Credit, and Collateral

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A) What are some advantages to borrowing short term?

    B) Is collateral a means for affecting interest rate?

    C) What are some advantages and disadvantages of having a bad credit vs good credit in terms of getting a loan?

    © BrainMass Inc. brainmass.com June 4, 2020, 2:45 am ad1c9bdddf
    https://brainmass.com/business/finance/corporate-finance-loans-credit-collateral-476889

    Solution Preview

    A) Advantages to borrowing short term include a lower interest rate, you can leverage the short-term loan to make a profit within a year, and short-term loans are easier to get approved for than a long-term loan.

    B) Definitely, collateral is a means for effecting the interest rate granted to you; especially if the ...

    Solution Summary

    This solution discusses the advantages of borrowing short term and having good credit, and explains how collateral affecting the interest rate of a loan.

    $2.19

    ADVERTISEMENT