Banks are more like to extend credit to an organization if it has acquired Insurance. No, it’s challenging for big businesses to obtain a loan from a bank, but if you have a small business or startup and have secured business insurance, your chances of doing so increase.
For newly established firms that depend on them, banks almost often require Insurance against the demise of one or more of the principal founders to decrease risk. The fine print also specifies that the bank must be paid first to repay the debt when the payment on death is made.
The likelihood that you will be approved for a loan from a financial institution is also increased by obtaining your own life and health insurance.
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