As a result of them being rejected for traditional loans, most small businesses end up applying for short-term financing.
Small businesses are considered risky by institutions who offer traditional business loans to the point where most of them are rejected.
As a result, they are forced to turn to short-term financing which comes with high rates and are therefore more expensive to obtain.
Find out more on small business risk at https://brainly.com/question/1358332.
