Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/114692
Authors: 
Haynes, George
Watts, Myles
Year of Publication: 
1996
Citation: 
[Journal:] Journal of Entrepreneurial and Small Business Finance [ISSN:] 1057-2287 [Volume:] 5 [Year:] 1996 [Issue:] 1 [Pages:] 17-42
Abstract: 
Finance companies have been perceived as isolated and insignificant lenders, attracting high risk borrowers and charging these borrowers relatively high prices. Using the 1988 National Survey of Small Business Finance, this study examines the relationship between finance companies and other lenders, describes the characteristics of borrowers attracted to finance companies and assesses whether finance companies charge higher loan prices and impose more stringent collateral requirements on their borrowers than other lenders. This study refutes the popular notion that finance companies are not mainstream lenders by suggesting that finance companies are an important source of financial capital attracting borrowers similar to those attracted by commercial banks and charging these borrowers competitive prices.
Subjects: 
Finance Companies
Small Business
Lending
Borrowing
JEL: 
L25
G32
G21
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.