It’s well known that banks earn most of their money by charging interest on the money they lend. Lesser known are the constraints that affect bank lending decisions.If you know how bankers think and the rules they must follow, you will be better able to prepare a sound financing proposal – and understand the reasoning behind the bank’s final decision, whether in your favor or not.Essentially, the funds a bank uses to make loans come mainly from deposits – in other words, money borrowed from depositors. The interest a bank charges for a loan is not much more than interest
