When money is lent under these circumstances

When money is lent under these circumstances, lenders feel quite aggrieved as they have lost control of where the money is being invested.By stopping business borrowing this way it is hoped they will start to see the importance of maintaining good practices which should help with investment later on. Fortunately, small businesses can always use the more approved methods of friends or relations to help provide finance. Lenders prefer to use money from elsewhere because it lowers their risk but still allows for a healthy profit to be received by the finance company. Banks have always been known as institutions that prefer to lend money to those that least need it which is why if you are already wealthy and require a loan it is often arranged at a preferential rate of interest.