which type if business would: small business loans be best suited for? business credit cards be...

which type if business would:

small business loans be best suited for?

business credit cards be best suited for?

venture capitalist investment be best suited for?

Expert Solution

Small business loans will be best suited for local or marginal level business. Such as opening a sole propreitorship based business like that of transportation, grocery selling etc. As only small amount of loan will be required to establish the business and not much working capital would be required on daily basis.

Business cards are suited for businesses that can operate at national/state level. These business could be large in size and could have partnership ventures. Business cards offer substantial amount of loans and services for businesses like overdraft and current withdrawals etc that would be very helpful to engage in these businesses like that of super market etc.

Venture capital would be required for large size businesses could be national level or at international level as well. Such as a new construction company, retail giant shop would reuire a lot of funds not only at establsihment but also for working capital and risk would be high too. Thus to share the burden of capital and risk venture capital woudl be good option.

Rahul Sunny answered 2 years ago

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