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<blockquote data-quote="jan28" data-source="post: 15079" data-attributes="member: 3054"><p>Hey, I'm not completely sure but I think this would depend on the borrower's finances and their goals first. Higher interest rates are applied to short term loans and to loans that aren't that high. This is never an ideal situation for companies but they might also have to agree to it if they're deemed to be a risk by the bank so the high rates compensate for the risk the lender is taking. The company should be comfortable that they'll be able to pay this back. The company might also not have an asset worth acting as a collateral or they don't want to risk losing them.</p></blockquote><p></p>
[QUOTE="jan28, post: 15079, member: 3054"] Hey, I'm not completely sure but I think this would depend on the borrower's finances and their goals first. Higher interest rates are applied to short term loans and to loans that aren't that high. This is never an ideal situation for companies but they might also have to agree to it if they're deemed to be a risk by the bank so the high rates compensate for the risk the lender is taking. The company should be comfortable that they'll be able to pay this back. The company might also not have an asset worth acting as a collateral or they don't want to risk losing them. [/QUOTE]
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