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> Irrelevant. Why would they care which bank the money comes from? I'm sure they're looking for good terms, but being able to secure financing from a more repu
by viscanti 9y ago
> Irrelevant. Why would they care which bank the money comes from?
I'm sure they're looking for good terms, but being able to secure financing from a more reputable entity is still a signal. If they were some sort or real estate developer and could only get loans from someone like the Russian Mafia then we'd have a little more insight into what kind of business they must be running. In this case, going to a reputable bank is probably the best strategy for minimizing the cost associated with the loan.
The more reputable the bank, the more selective they are about their loans, and the closer to the LIBOR rate they'll charge. You can get a much better loan from a large bank than you can from a loan shark.