4 ms·
Surely the interest rates on 1000 100k loans are going to cumulatively exceed the interest on a single 100M loan by a significant amount. Those 1000 loans are
by saberience 1y ago
Surely the interest rates on 1000 100k loans are going to cumulatively exceed the interest on a single 100M loan by a significant amount.
Those 1000 loans are going to result in millions more interest per year than a single 100M prime loan.
- chaseadam17 1y agoSure small loans have higher rates but they are lower margin and less profitable. They require way more overhead relative to loan size and a drastically higher chance of default (I used to underwrite small biz loans, many times you can’t even get recent and accurate financials - eg for a small plumbing biz). Just look at the market - there’s a reason all the big banks compete to bank Apple but the SBA has to step in to try and stimulate small biz lending.