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Due to the nature of business life, many corporations lack enough capital in order to maintain their founding philosophy. Generally, corporations prefer to take loans from financial institutions to cope with capital insufficiency. However, this is not an easy transaction for the counterparties. Banks (the representative financial institutions) have two main aims. First one is to collect money from their customers within the structure of deposit accounts, saving accounts or current accounts, and the second is to allocate these funds to their customers as “loans or credit”. They all require intense effort. It is not easy to say that a bank can convince its customers to open a savings account at its branches or can approve to allocate credit line to a customer. No sponsor |
