Why do banks persuade some businesses to get loans?

[Kross]

A friend of mine has a business and his bank are persuading him to get loan and expand the business. They are trying to convince him why he needs a loan.

Why would a bank persuade a business to take a loan?

 

[magnus2022]

I have never experienced such. But it possible if the bank see that your business have bright prospects! Hardly can banks give loan to unstable business! Probably, your friend's business is in good standing.

 

[Kross]

Banks only persuade big multinational companies to come get a loan. Not small businesses that are struggling.

 

[Springtime]

One of the business of banks is to lend money to companies and earn via interest rates. Banks will only persuade companies who have good financial standing to lend. If your company is struggling financially, it's hard to get bank loan.

 

[eLdavis]

At the end of the day, banks are only after their own profit, they often give offers like this, but what they are after it's their self.

 

[Fire&Rain]

Banks aren’t doing it out of kindness. Loans are products just like anything else they sell. By offering credit, they tie the business into a long term repayment relationship that benefits the bank. For some companies it can be useful, but the decision should be based on solid numbers, not just because the bank suggested it.

 

[Min George]

Banks always persuade businesses that are financially stable to get loans because they know the business can pay the loan and the interests for them to earn money.

 

[Suba]

One of the bank's products is providing loans, just like a convenience store offering its goods to customers. So, if a businessperson or anyone else takes out a bank loan, they will earn interest, administration fees, and other fees.