If a small business opts not to borrow from a commercial bank, then what is probably its next best alternative?
A) an insurance company.
B) a superannuation fund.
C) an investment fund.
D) a finance company.

Question

Quizplus · Accepted Answer

A finance company is a common alternative to commercial banks for small businesses looking to borrow funds. Finance companies specialize in lending money to individuals and small businesses, often with more relaxed lending requirements than commercial banks. They may also offer specialized loan programs tailored to the needs of small businesses, such as equipment financing or working capital loans. While finance companies may charge higher interest rates than banks, they can be a valuable resource for small businesses in need of capital. Insurance companies and superannuation funds do not typically lend money, while investment funds may not be a suitable option for small businesses seeking short-term financing needs.

If a Small Business Opts Not to Borrow from a Commercial